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

Attached files

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8-K - PLATINUM UNDERWRITERS HOLDINGS LTD	secondquarter2014_8k.htm
EX-99.1 - PLATINUM UNDERWRITERS HOLDINGS LTD	earningsreleaseq2_2014.htm

Exhibit 99.2

Platinum Underwriters Holdings, Ltd.

Financial Supplement

June 30, 2014

(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, 2013. 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 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 estimated 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 financial strength ratings; our ability to raise capital on acceptable terms if necessary; our exposure to credit loss from counterparties in the normal course of business; the availability and cost of collateral arrangements in order to provide reinsurance; 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 fluctuations; 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 effect of technology breaches or failures on our business; 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 of income, premium or other taxes on Platinum Underwriters Holdings, Ltd. or its subsidiaries by other jurisdictions; 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 non-compliance with laws, regulations and taxation on transactions with international counter-parties; 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, 2013.

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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 (Loss)	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 - Six 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 - Six 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						Six Months Ended
	June 30,						June 30,
	2014			2013			2014			2013
Highlights
Net premiums written	$	120,337		$	146,370		$	256,114		$	281,135
Net premiums earned		124,825			142,933			251,098			269,786
Underwriting income (1)		32,144			36,542			91,517			105,790
Net investment income		17,645			17,808			35,337			36,352
Net operating income (2)		36,956			40,665			101,075			115,577
Net realized gains (losses) on investments		(596	)		11,686			(1,111	)		25,004
Net impairment losses on investments		(136	)		(1,516	)		(224	)		(1,937	)
Net income	$	36,180		$	49,854		$	99,915		$	136,370

Total assets	$	3,824,716		$	4,047,902		$	3,824,716		$	4,047,902
Investments and cash and cash equivalents		3,429,292			3,607,807			3,429,292			3,607,807
Total shareholders' equity		1,777,869			1,746,546			1,777,869			1,746,546
Unpaid losses and loss adjustment expenses	$	1,560,517		$	1,793,087		$	1,560,517		$	1,793,087

Per share data
Common shares outstanding - end of period		26,385			29,268			26,385			29,268
Weighted average common shares outstanding - basic		26,577			30,571			27,167			31,467
Adjusted weighted average common shares outstanding - diluted		26,928			30,970			27,516			31,904
Basic earnings per common share	$	1.36		$	1.63		$	3.68		$	4.32
Diluted earnings per common share		1.34			1.61			3.63			4.26
Operating income per common share - diluted (2)		1.37			1.32			3.67			3.62
Dividends per common share		0.08			0.08			0.16			0.16
Book value per common share (3)		67.38			59.67			67.38			59.67
Fully converted book value per common share (3)	$	65.82		$	58.28		$	65.82		$	58.28

(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)

	June 30,		March 31,		December 31,		September 30,		June 30,
	2014		2014		2013		2013		2013
Assets
Investments:
Fixed maturity securities	$	2,025,418	$	1,986,320	$	1,961,265	$	1,937,984	$	1,920,710
Short-term investments		42,144		53,469		66,679		73,635		77,636
Cash and cash equivalents		1,361,730		1,412,970		1,464,418		1,565,405		1,609,461
Accrued investment income		20,593		22,112		20,026		20,451		19,805
Reinsurance premiums receivable		134,391		142,643		138,454		133,769		133,360
Reinsurance balances (prepaid and recoverable)		4,438		2,687		2,089		8,645		5,464
Funds held by ceding companies		88,091		117,428		119,241		118,983		119,445
Deferred acquisition costs		33,019		33,213		31,103		32,378		30,173
Reinsurance deposit assets		82,164		81,004		79,303		78,179		76,948
Other assets		32,728		33,505		41,307		39,830		54,900
Total assets	$	3,824,716	$	3,885,351	$	3,923,885	$	4,009,259	$	4,047,902

Liabilities
Unpaid losses and loss adjustment expenses	$	1,560,517	$	1,604,762	$	1,671,365	$	1,758,056	$	1,793,087
Unearned premiums		133,244		136,272		126,300		130,488		123,590
Debt obligations		250,000		250,000		250,000		250,000		250,000
Commissions payable		51,497		79,748		78,791		75,018		72,994
Other liabilities		51,589		54,626		50,722		96,767		61,685
Total liabilities	$	2,046,847	$	2,125,408	$	2,177,178	$	2,310,329	$	2,301,356

Shareholders' Equity
Common shares	$	264	$	269	$	281	$	279	$	293
Additional paid-in capital		-		-		10,711		-		3,817
Accumulated other comprehensive income		91,351		74,559		48,084		57,390		64,367
Retained earnings		1,686,254		1,685,115		1,687,631		1,641,261		1,678,069
Total shareholders' equity	$	1,777,869	$	1,759,943	$	1,746,707	$	1,698,930	$	1,746,546

Total liabilities and shareholders' equity	$	3,824,716	$	3,885,351	$	3,923,885	$	4,009,259	$	4,047,902

Book value per common share (1)	$	67.38	$	65.35	$	62.07	$	60.87	$	59.67
Fully converted book value per common share (1)	$	65.82	$	63.87	$	60.64	$	59.26	$	58.28

(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 (Loss)

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

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2014			2013			2014			2013
Revenue
Net premiums earned	$	124,825		$	142,933		$	251,098		$	269,786
Net investment income		17,645			17,808			35,337			36,352
Net realized gains (losses) on investments		(596	)		11,686			(1,111	)		25,004
Net impairment losses on investments		(136	)		(1,516	)		(224	)		(1,937	)
Other income (expense)		1,194			(315	)		2,711			1,077
Total revenue		142,932			170,596			287,811			330,282

Expenses
Net losses and loss adjustment expenses		50,865			62,667			77,374			76,665
Net acquisition expenses		27,848			30,313			55,349			60,532
Operating expenses		21,434			19,718			39,717			39,023
Net foreign currency exchange losses (gains)		34			(859	)		(153	)		(1,079	)
Interest expense		4,788			4,780			9,574			9,559
Total expenses		104,969			116,619			181,861			184,700
Income before income taxes		37,963			53,977			105,950			145,582
Income tax expense		1,783			4,123			6,035			9,212
Net income	$	36,180		$	49,854		$	99,915		$	136,370

Earnings Per Common Share
Weighted average common shares outstanding		26,577			30,571			27,167			31,467
Basic earnings per common share	$	1.36		$	1.63		$	3.68		$	4.32

Adjusted weighted average common shares outstanding		26,928			30,970			27,516			31,904
Diluted earnings per common share	$	1.34		$	1.61		$	3.63		$	4.26

Comprehensive income (loss)
Net income	$	36,180		$	49,854		$	99,915		$	136,370
Other comprehensive income (loss)		16,792			(66,736	)		43,267			(73,323	)
Comprehensive income (loss)	$	52,972		$	(16,882	)	$	143,182		$	63,047

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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,
	2014			2014			2013			2013			2013
Revenue
Net premiums earned	$	124,825		$	126,273		$	148,267		$	135,360		$	142,933
Net investment income		17,645			17,692			17,936			17,758			17,808
Net realized gains (losses) on investments		(596	)		(515	)		(778	)		(306	)		11,686
Net impairment losses on investments		(136	)		(88	)		(31	)		(65	)		(1,516	)
Other income (expense)		1,194			1,517			974			1,426			(315	)
Total revenue		142,932			144,879			166,368			154,173			170,596

Expenses
Net losses and loss adjustment expenses		50,865			26,509			46,639			44,142			62,667
Net acquisition expenses		27,848			27,501			32,560			30,675			30,313
Operating expenses		21,434			18,283			23,019			20,672			19,718
Net foreign currency exchange losses (gains)		34			(187	)		358			487			(859	)
Interest expense		4,788			4,786			4,784			4,782			4,780
Total expenses		104,969			76,892			107,360			100,758			116,619
Income before income taxes		37,963			67,987			59,008			53,415			53,977
Income tax expense		1,783			4,252			10,385			15,130			4,123
Net income	$	36,180		$	63,735		$	48,623		$	38,285		$	49,854

Earnings Per Common Share
Weighted average common shares outstanding		26,577			27,765			28,097			28,655			30,571
Basic earnings per common share	$	1.36		$	2.30		$	1.73		$	1.34		$	1.63

Adjusted weighted average common shares outstanding		26,928			28,109			28,492			29,065			30,970
Diluted earnings per common share	$	1.34		$	2.27		$	1.71		$	1.32		$	1.61

Comprehensive income (loss)
Net income	$	36,180		$	63,735		$	48,623		$	38,285		$	49,854
Other comprehensive income (loss)		16,792			26,475			(9,306	)		(6,977	)		(66,736	)
Comprehensive income (loss)	$	52,972		$	90,210		$	39,317		$	31,308		$	(16,882	)

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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,
	2014		2013			2014		2013
Earnings
Basic and Diluted
Net income attributable to common shareholders	$	36,180	$	49,854		$	99,915	$	136,370
Portion allocated to participating common shareholders (1)		-		(113	)		-		(304	)
Net income allocated to common shareholders	$	36,180	$	49,741		$	99,915	$	136,066

Common Shares
Basic
Weighted average common shares outstanding		26,577		30,571			27,167		31,467
Diluted
Weighted average common shares outstanding		26,577		30,571			27,167		31,467
Effect of dilutive securities:
Common share options		55		155			53		191
Restricted share units		296		244			296		246
Adjusted weighted average common shares outstanding		26,928		30,970			27,516		31,904

Earnings Per Common Share
Basic earnings per common share	$	1.36	$	1.63		$	3.68	$	4.32
Diluted earnings per common share	$	1.34	$	1.61		$	3.63	$	4.26

(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
	June 30,		March 31,		December 31,		September 30,			June 30,
	2014		2014		2013		2013			2013
Earnings
Basic and Diluted
Net income attributable to common shareholders	$	36,180	$	63,735	$	48,623	$	38,285		$	49,854
Portion allocated to participating common shareholders (1)		-		-		-		(26	)		(113	)
Net income allocated to common shareholders	$	36,180	$	63,735	$	48,623	$	38,259		$	49,741

Common Shares
Basic
Weighted average common shares outstanding		26,577		27,765		28,097		28,655			30,571
Diluted
Weighted average common shares outstanding		26,577		27,765		28,097		28,655			30,571
Effect of dilutive securities:
Common share options		55		51		71		131			155
Restricted share units		296		293		324		279			244
Adjusted weighted average common shares outstanding		26,928		28,109		28,492		29,065			30,970

Earnings Per Common Share
Basic earnings per common share	$	1.36	$	2.30	$	1.73	$	1.34		$	1.63
Diluted earnings per common share	$	1.34	$	2.27	$	1.71	$	1.32		$	1.61

(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 June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Net cash provided by (used in) operating activities	$	(4,847	)	$	(36,555	)	$	1,419		$	(49,113	)

Net cash provided by (used in) investing activities		(10,097	)		18,716			8,123			165,450

Net cash provided by (used in) financing activities		(37,117	)		(151,496	)		(114,834	)		(215,010	)

Effect of foreign currency exchange rate changes		821			(7,450	)		2,604			(12,261	)

Net increase (decrease) in cash and cash equivalents	$	(51,240	)	$	(176,785	)	$	(102,688	)	$	(110,934	)

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Platinum Underwriters Holdings, Ltd.

Condensed Consolidated Statements of Cash Flows – by Quarter

($ in thousands)

	Three Months Ended
	June 30, 2014			March 31, 2014			December 31, 2013			September 30, 2013			June 30, 2013
Net cash provided by (used in) operating activities	$	(4,847	)	$	6,266		$	(42,464	)	$	35,015		$	(36,555	)

Net cash provided by (used in) investing activities		(10,097	)		18,220			(62,878	)		(4,036	)		18,716

Net cash provided by (used in) financing activities		(37,117	)		(77,717	)		6,209			(79,551	)		(151,496	)

Effect of foreign currency exchange rate changes		821			1,783			(1,854	)		4,516			(7,450	)

Net increase (decrease) in cash and cash equivalents	$	(51,240	)	$	(51,448	)	$	(100,987	)	$	(44,056	)	$	(176,785	)

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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,
	2014		2013			2014			2013
Net income attributable to common shareholders	$	36,180	$	49,854		$	99,915		$	136,370
Portion allocated to participating common shareholders (1)		-		(113	)		-			(304	)
Net income allocated to common shareholders	$	36,180	$	49,741		$	99,915		$	136,066

Adjustments for:
Net realized (gains) losses on investments, net of tax	$	596	$	(9,706	)	$	1,111		$	(21,329	)
Net impairment losses on investments, net of tax		136		1,516			224			1,904
Net foreign currency exchange losses (gains), net of tax		44		(886	)		(175	)		(1,064	)
Net operating income (2)	$	36,956	$	40,665		$	101,075		$	115,577

Per diluted common share:
Net income	$	1.34	$	1.61		$	3.63		$	4.26
Adjustments for:
Net realized (gains) losses on investments		0.02		(0.31	)		0.04			(0.67	)
Net impairment losses on investments		0.01		0.05			0.01			0.06
Net foreign currency exchange losses (gains)		-		(0.03	)		(0.01	)		(0.03	)
Net operating income per diluted common share (3)	$	1.37	$	1.32		$	3.67		$	3.62

Adjusted weighted average common shares outstanding - diluted		26,928		30,970			27,516			31,904

(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 financial 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 financial 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,
	2014		2014		2013		2013		2013
Key Ratios
Combined ratio (%)		74.2%		53.0%		63.5%		65.5%		74.4%
Investable assets to shareholders' equity ratio	1.9:1		2.0:1		2.0:1		2.1:1		2.1:1
Debt to total capital (%)		12.3%		12.4%		12.5%		12.8%		12.5%
Net premiums written (annualized) to shareholders' equity		0.27		0.31		0.34		0.32		0.34

Share Data
Book value per common share (1)	$	67.38	$	65.35	$	62.07	$	60.87	$	59.67
Common shares outstanding (000's)		26,385		26,933		28,143		27,910		29,268

Market Price Per Common Share
High	$	66.43	$	61.05	$	63.60	$	61.06	$	59.50
Low		58.91		55.03		57.84		56.63		54.06
Close	$	64.85	$	60.10	$	61.28	$	59.73	$	57.22

Industry Ratings
Financial Strength Ratings:
A.M. Best Company, Inc.		A		A		A		A		A
Standard & Poor's Ratings Services		A-		A-		A-		A-		A-
Counterparty Credit Ratings (senior unsecured):
A.M. Best Company, Inc.	bbb		bbb		bbb		bbb		bbb
Standard & Poor's Ratings Services	BBB		BBB		BBB		BBB		BBB

Supplemental Data
Total employees		125		124		124		123		124

(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)

	June 30,		March 31,		December 31,		September 30,		June 30,
	2014		2014		2013		2013		2013
Market price per share at period end	$	64.85	$	60.10	$	61.28	$	59.73	$	57.22

Shareholders' equity	$	1,777,869	$	1,759,943	$	1,746,707	$	1,698,930	$	1,746,546
Add: Proceeds from exercise of share options		4,994		4,994		4,994		13,225		13,539
Shareholders' equity - diluted	$	1,782,863	$	1,764,937	$	1,751,701	$	1,712,155	$	1,760,085

Basic common shares outstanding		26,385		26,933		28,143		27,910		29,268
Add: Common share options (1)		148		148		148		388		397
Add: Restricted share units		554		553		598		596		535
Diluted common shares outstanding		27,087		27,634		28,889		28,894		30,200

Book value per common share (2)
Book value per common share	$	67.38	$	65.35	$	62.07	$	60.87	$	59.67
Fully converted book value per common share	$	65.82	$	63.87	$	60.64	$	59.26	$	58.28

(1)	Options with an exercise 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 June 30, 2014												Three Months Ended June 30, 2013
	Property and Marine			Casualty			Finite Risk			Total			Property and Marine			Casualty			Finite Risk			Total
Net premiums written	$	58,518		$	54,806		$	7,013		$	120,337		$	57,350		$	79,711		$	9,309		$	146,370
Net premiums earned		55,528			61,555			7,742			124,825			58,832			75,629			8,472			142,933
Net losses and loss adjustment expenses		31,400			15,261			4,204			50,865			21,292			35,358			6,017			62,667
Net acquisition expenses		10,229			15,636			1,983			27,848			9,698			18,068			2,547			30,313
Other underwriting expenses		8,085			5,537			346			13,968			7,414			5,670			327			13,411
Segment underwriting income (loss)*	$	5,814		$	25,121		$	1,209			32,144		$	20,428		$	16,533		$	(419	)		36,542

Net investment income											17,645												17,808
Net realized gains (losses) on investments											(596	)											11,686
Net impairment losses on investments											(136	)											(1,516	)
Other income (expense)											1,194												(315	)
Corporate expenses not allocated to segments											(7,466	)											(6,307	)
Net foreign currency exchange (losses) gains											(34	)											859
Interest expense											(4,788	)											(4,780	)
Income before income taxes										$	37,963											$	53,977

Underwriting ratios:*
Net loss and loss adjustment expense		56.5	%		24.8	%		54.3	%		40.7	%		36.2	%		46.8	%		71.0	%		43.8	%
Net acquisition expense		18.4	%		25.4	%		25.6	%		22.3	%		16.5	%		23.9	%		30.1	%		21.2	%
Other underwriting expense		14.6	%		9.0	%		4.5	%		11.2	%		12.6	%		7.5	%		3.9	%		9.4	%
Combined		89.5	%		59.2	%		84.4	%		74.2	%		65.3	%		78.2	%		105.0	%		74.4	%

Statutory underwriting ratios:*
Net loss and loss adjustment expense		56.5	%		24.8	%		54.3	%		40.7	%		36.2	%		46.8	%		71.0	%		43.8	%
Net acquisition expense		20.9	%		24.7	%		27.2	%		23.0	%		17.3	%		23.9	%		28.7	%		21.7	%
Other underwriting expense		13.8	%		10.1	%		4.9	%		11.6	%		12.9	%		7.1	%		3.5	%		9.2	%
Combined		91.2	%		59.6	%		86.4	%		75.3	%		66.4	%		77.8	%		103.2	%		74.7	%

* Segment underwriting income or loss and related 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 – Six Month Summary

($ in thousands)

	Six Months Ended June 30, 2014												Six Months Ended June 30, 2013
	Property and Marine			Casualty			Finite Risk			Total			Property and Marine			Casualty			Finite Risk			Total
Net premiums written	$	116,263		$	126,480		$	13,371		$	256,114		$	116,777		$	150,555		$	13,803		$	281,135
Net premiums earned		108,720			127,272			15,106			251,098			110,684			146,424			12,678			269,786
Net losses and loss adjustment expenses		37,010			30,221			10,143			77,374			7,087			65,001			4,577			76,665
Net acquisition expenses		20,272			31,278			3,799			55,349			17,925			34,317			8,290			60,532
Other underwriting expenses		15,455			10,765			638			26,858			14,746			11,393			660			26,799
Segment underwriting income (loss)*	$	35,983		$	55,008		$	526			91,517		$	70,926		$	35,713		$	(849	)		105,790

Net investment income											35,337												36,352
Net realized gains (losses) on investments											(1,111	)											25,004
Net impairment losses on investments											(224	)											(1,937	)
Other income (expense)											2,711												1,077
Corporate expenses not allocated to segments											(12,859	)											(12,224	)
Net foreign currency exchange (losses) gains											153												1,079
Interest expense											(9,574	)											(9,559	)
Income before income taxes										$	105,950											$	145,582

Underwriting ratios:*
Net loss and loss adjustment expense		34.0	%		23.7	%		67.1	%		30.8	%		6.4	%		44.4	%		36.1	%		28.4	%
Net acquisition expense		18.6	%		24.6	%		25.1	%		22.0	%		16.2	%		23.4	%		65.4	%		22.4	%
Other underwriting expense		14.2	%		8.5	%		4.2	%		10.7	%		13.3	%		7.8	%		5.2	%		9.9	%
Combined		66.8	%		56.8	%		96.4	%		63.5	%		35.9	%		75.6	%		106.7	%		60.7	%

Statutory underwriting ratios:*
Net loss and loss adjustment expense		34.0	%		23.7	%		67.1	%		30.8	%		6.4	%		44.4	%		36.1	%		28.4	%
Net acquisition expense		19.7	%		24.3	%		27.0	%		22.3	%		16.3	%		23.4	%		60.9	%		22.3	%
Other underwriting expense		13.3	%		8.5	%		4.8	%		10.5	%		12.6	%		7.6	%		4.8	%		9.5	%
Combined		67.0	%		56.5	%		98.9	%		63.6	%		35.3	%		75.4	%		101.8	%		60.2	%

* Segment underwriting income or loss and related 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,
	2014			2014			2013			2013			2013
Net premiums written	$	58,518		$	57,745		$	53,561		$	59,169		$	57,350
Net premiums earned		55,528			53,192			56,199			55,127			58,832
Net losses and loss adjustment expenses		31,400			5,610			(1,005	)		28,339			21,292
Net acquisition expenses		10,229			10,043			10,718			9,699			9,698
Other underwriting expenses		8,085			7,370			8,405			7,747			7,414
Segment underwriting income*	$	5,814		$	30,169		$	38,081		$	9,342		$	20,428

Underwriting ratios:*
Net loss and loss adjustment expense		56.5	%		10.5	%		(1.8	%)		51.4	%		36.2	%
Net acquisition expense		18.4	%		18.9	%		19.1	%		17.6	%		16.5	%
Other underwriting expense		14.6	%		13.9	%		15.0	%		14.1	%		12.6	%
Combined		89.5	%		43.3	%		32.3	%		83.1	%		65.3	%

Statutory underwriting ratios:*
Net loss and loss adjustment expense		56.5	%		10.5	%		(1.8	%)		51.4	%		36.2	%
Net acquisition expense		20.9	%		18.5	%		16.8	%		20.6	%		17.3	%
Other underwriting expense		13.8	%		12.8	%		15.7	%		13.1	%		12.9	%
Combined		91.2	%		41.8	%		30.7	%		85.1	%		66.4	%

* Segment underwriting income or loss and related 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,
	2014			2014			2013			2013			2013
Net premiums written	$	54,806		$	71,674		$	75,121		$	69,992		$	79,711
Net premiums earned		61,555			65,717			78,921			72,543			75,629
Net losses and loss adjustment expenses		15,261			14,960			40,645			10,242			35,358
Net acquisition expenses		15,636			15,642			18,264			19,067			18,068
Other underwriting expenses		5,537			5,228			6,029			5,727			5,670
Segment underwriting income*	$	25,121		$	29,887		$	13,983		$	37,507		$	16,533

Underwriting ratios:*
Net loss and loss adjustment expense		24.8	%		22.8	%		51.5	%		14.1	%		46.8	%
Net acquisition expense		25.4	%		23.8	%		23.1	%		26.3	%		23.9	%
Other underwriting expense		9.0	%		8.0	%		7.6	%		7.9	%		7.5	%
Combined		59.2	%		54.6	%		82.2	%		48.3	%		78.2	%

Statutory underwriting ratios:*
Net loss and loss adjustment expense		24.8	%		22.8	%		51.5	%		14.1	%		46.8	%
Net acquisition expense		24.7	%		24.0	%		23.1	%		26.5	%		23.9	%
Other underwriting expense		10.1	%		7.3	%		8.0	%		8.2	%		7.1	%
Combined		59.6	%		54.1	%		82.6	%		48.8	%		77.8	%

* Segment underwriting income or loss and related 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,
	2014			2014			2013			2013			2013
Net premiums written	$	7,013		$	6,358		$	19,406		$	8,737		$	9,309
Net premiums earned		7,742			7,364			13,147			7,690			8,472
Net losses and loss adjustment expenses		4,204			5,939			6,999			5,561			6,017
Net acquisition expenses		1,983			1,816			3,578			1,909			2,547
Other underwriting expenses		346			292			437			342			327
Segment underwriting income (loss)*	$	1,209		$	(683	)	$	2,133		$	(122	)	$	(419	)

Underwriting ratios:*
Net loss and loss adjustment expense		54.3	%		80.6	%		53.2	%		72.3	%		71.0	%
Net acquisition expense		25.6	%		24.7	%		27.2	%		24.8	%		30.1	%
Other underwriting expense		4.5	%		4.0	%		3.3	%		4.4	%		3.9	%
Combined		84.4	%		109.3	%		83.7	%		101.5	%		105.0	%

Statutory underwriting ratios:*
Net loss and loss adjustment expense		54.3	%		80.6	%		53.2	%		72.3	%		71.0	%
Net acquisition expense		27.2	%		26.8	%		25.1	%		23.4	%		28.7	%
Other underwriting expense		4.9	%		4.6	%		2.3	%		3.9	%		3.5	%
Combined		86.4	%		112.0	%		80.6	%		99.6	%		103.2	%

* Segment underwriting income or loss and related 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,
	2014		2013		2014			2013
Property and Marine
Excess-of-Loss	$	38,183	$	44,375	$	79,265		$	92,458
Proportional		20,335		12,975		36,998			24,319
Subtotal Property and Marine		58,518		57,350		116,263			116,777
Casualty
Excess-of-Loss		41,476		62,909		100,806			118,265
Proportional		13,330		16,802		25,674			32,290
Subtotal Casualty		54,806		79,711		126,480			150,555
Finite Risk
Excess-of-Loss		-		-		(7	)		-
Proportional		7,013		9,309		13,378			13,803
Subtotal Finite Risk		7,013		9,309		13,371			13,803
Combined Segments
Excess-of-Loss		79,659		107,284		180,064			210,723
Proportional		40,678		39,086		76,050			70,412
Total	$	120,337	$	146,370	$	256,114		$	281,135

	Three Months Ended				Six Months Ended
	June 30,				June 30,
		2014		2013		2014			2013
Property and Marine
United States	$	42,077	$	35,754	$	76,347		$	67,859
International		16,441		21,596		39,916			48,918
Subtotal Property and Marine		58,518		57,350		116,263			116,777
Casualty
United States		44,603		69,374		108,619			134,166
International		10,203		10,337		17,861			16,389
Subtotal Casualty		54,806		79,711		126,480			150,555
Finite Risk
United States		7,013		9,309		13,371			13,803
International		-		-		-			-
Subtotal Finite Risk		7,013		9,309		13,371			13,803
Combined Segments
United States		93,693		114,437		198,337			215,828
International		26,644		31,933		57,777			65,307
Total	$	120,337	$	146,370	$	256,114		$	281,135

- 19 -

Platinum Underwriters Holdings, Ltd.

Premiums by Line of Business – Three Month Summary

($ in thousands)

	Three Months Ended June 30, 2014						Three Months Ended June 30, 2013
	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	$	13,948	$	13,948	$	8,531	$	5,157		$	5,157		$	4,367
North American Property Catastrophe		20,119		19,456		17,637		19,381			18,651			19,466
North American Property Risk		6,226		6,226		6,854		8,659			8,659			8,744
Other Property, including Crop		3,930		3,419		3,826		4,847			4,086			4,662
Marine / Aviation Proportional		1,554		1,554		1,932		2,303			2,303			1,962
Marine / Aviation Excess		565		565		617		(376	)		(376	)		(321	)
International Property Proportional		3,727		3,727		3,807		4,377			4,377			4,036
International Property Catastrophe		8,075		8,075		10,533		12,864			12,864			14,134
International Property Risk		1,548		1,548		1,791		1,629			1,629			1,782
Subtotal		59,692		58,518		55,528		58,841			57,350			58,832

Casualty
1st Dollar GL		697		697		1,106		2,145			2,145			2,002
1st Dollar Other		3,284		3,284		3,453		3,506			3,506			3,542
Casualty Excess		26,695		26,695		34,051		47,119			47,119			46,704
Accident & Health		12,829		11,457		12,948		13,447			13,330			13,896
Clash		1,567		1,567		1,642		1,741			1,741			1,814
International Casualty		7,778		7,778		4,361		7,398			7,398			3,142
International Motor		430		430		503		353			353			467
Financial Lines		2,898		2,898		3,491		4,119			4,119			4,062
Subtotal		56,178		54,806		61,555		79,828			79,711			75,629

Finite Risk
Finite Property		-		-		-		-			-			-
Finite Casualty		7,013		7,013		7,742		9,309			9,309			8,472
Subtotal		7,013		7,013		7,742		9,309			9,309			8,472

Total	$	122,883	$	120,337	$	124,825	$	147,978		$	146,370		$	142,933

- 20 -

Platinum Underwriters Holdings, Ltd.

Premiums by Line of Business – Six Month Summary

($ in thousands)

	Six Months Ended June 30, 2014									Six Months Ended June 30, 2013
	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	$	23,561		$	23,561		$	17,484		$	9,395	$	9,395	$	8,701
North American Property Catastrophe		37,290			36,627			34,458			37,515		36,785		37,606
North American Property Risk		13,092			13,092			13,801			16,179		16,129		16,102
Other Property, including Crop		5,664			5,153			5,600			7,953		7,192		7,689
Marine / Aviation Proportional		3,682			3,682			4,389			4,226		4,226		3,144
Marine / Aviation Excess		1,486			1,486			1,482			157		157		236
International Property Proportional		8,062			8,062			8,066			8,679		8,679		8,098
International Property Catastrophe		22,656			21,132			19,884			30,016		30,016		24,919
International Property Risk		3,468			3,468			3,556			4,198		4,198		4,189
Subtotal		118,961			116,263			108,720			118,318		116,777		110,684

Casualty
1st Dollar GL		986			986			2,330			3,864		3,864		3,840
1st Dollar Other		4,891			4,891			5,475			7,819		7,819		7,614
Casualty Excess		69,056			69,056			71,133			89,527		89,527		89,588
Accident & Health		30,676			28,326			26,501			27,112		26,586		26,662
Clash		3,210			3,210			3,260			3,703		3,703		3,636
International Casualty		12,945			12,945			10,667			10,190		10,190		6,031
International Motor		950			950			949			1,009		1,009		1,006
Financial Lines		6,116			6,116			6,957			7,857		7,857		8,047
Subtotal		128,830			126,480			127,272			151,081		150,555		146,424

Finite Risk
Finite Property		(7	)		(7	)		(7	)		-		-		-
Finite Casualty		13,378			13,378			15,113			13,803		13,803		12,678
Subtotal		13,371			13,371			15,106			13,803		13,803		12,678

Total	$	261,162		$	256,114		$	251,098		$	283,202	$	281,135	$	269,786

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Platinum Underwriters Holdings, Ltd.

Investments

($ in thousands)

	June 30, 2014								December 31, 2013
	Fair Value		Book Yield			Market Yield			Fair Value		Book Yield			Market Yield
Fixed maturity available-for-sale securities:
U.S. Government	$	49,604		0.4	%		0.2	%	$	4,765		2.8	%		0.3	%
U.S. Government agencies		91,053		2.8	%		2.6	%		51,122		2.7	%		3.0	%
Municipal bonds		1,270,057		3.8	%		2.2	%		1,269,247		3.8	%		2.7	%
Non-U.S. governments		40,517		1.2	%		0.5	%		40,514		1.2	%		0.6	%
Corporate bonds		227,718		4.2	%		3.1	%		227,235		4.3	%		3.7	%
Commercial mortgage-backed securities		69,667		6.1	%		2.2	%		77,491		5.7	%		2.3	%
Residential mortgage-backed securities		155,072		1.4	%		1.2	%		169,965		1.5	%		1.3	%
Asset-backed securities		18,229		5.0	%		2.8	%		17,531		4.9	%		2.4	%
Total fixed maturity available-for-sale securities	$	1,921,917		3.5	%		2.2	%	$	1,857,870		3.6	%		2.6	%

Fixed maturity trading securities:
Non-U.S. governments	$	103,501		3.5	%		0.5	%	$	103,395		3.5	%		0.6	%
Total fixed maturity trading securities	$	103,501		3.5	%		0.5	%	$	103,395		3.5	%		0.6	%

Short-term investments	$	42,144		2.8	%		2.8	%	$	66,679		2.4	%		2.4	%

	June 30, 2014								December 31, 2013
Credit quality of investments*	Fair Value		% of Total						Fair Value		% of Total
Aaa	$	638,274		30.9	%				$	628,265		31.0	%
Aa		945,969		45.7	%					806,282		39.8	%
A		255,971		12.4	%					359,803		17.7	%
Baa		192,567		9.3	%					200,437		9.9	%
Below investment grade		34,781		1.7	%					33,157		1.6	%
Total	$	2,067,562		100.0	%				$	2,027,944		100.0	%

Portfolio information**
Investable Assets	$3.5 billion								$3.5 billion
Credit Quality	Aa2								Aa2
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 June 30, 2014, there were approximately $13.1 million and $4.6 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)

	June 30, 2014
	Fair Value		Net Unrealized Gain (Loss)			Credit Quality		Duration		Weighted Average Life
Fixed maturity available-for-sale securities:
U.S. Government	$	49,604	$	172		Aaa			1.2
U.S. Government agencies		91,053		1,516		Aaa			6.0
Municipal bonds:
State general obligation bonds		895,124		62,284		Aa2			5.6
Essential service bonds*		184,636		10,405			A1		3.8
State income tax and sales tax bonds		71,048		6,537		Aa2			6.3
Other municipal bonds		65,068		2,920		Aa2			4.6
Pre-refunded bonds		54,181		2,597		Aa2			1.5
Subtotal		1,270,057		84,743		Aa2			5.1
Non-U.S. governments		40,517		540		Aa1			1.0
Corporate bonds:
Industrial		147,210		6,868		Baa2			5.3
Utilities		58,187		2,525			A3		6.0
Insurance		22,321		2,374		Baa2			6.1
Subtotal		227,718		11,767		Baa1			5.6
Commercial mortgage-backed securities		69,667		4,409			A1		1.8		1.9
Residential mortgage-backed securities:
U.S. Government agency residential mortgage-backed securities		139,089		857		Aaa			1.1		5.7
Non-agency residential mortgage-backed securities		15,983		422		Caa2			1.1		6.6
Subtotal		155,072		1,279		Aa2			1.1		5.8
Asset-backed securities:
Asset-backed securities		13,429		(171	)	Aaa			-		4.9
Sub-prime asset-backed securities		4,800		2,216			C		-		10.3
Subtotal		18,229		2,045			A2		-		6.3
Total	$	1,921,917	$	106,471		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, 2014
	Par Value		Fair Value		Net Unrealized Gain (Loss)			Credit Quality
Top 20 Holdings
American Electric Power Company, Inc.	$	12,500	$	13,198	$	711			A3
Mattel, Inc.		10,000		10,584		485		Baa1
Entergy Corporation		9,800		10,043		240			A3
FirstEnergy Corp.		7,000		7,729		730		Baa2
Loews Corporation		6,000		7,297		1,289		Baa2
Teck Resources Limited		6,750		6,949		228		Baa2
Newmont Mining Corporation		7,000		6,730		(227	)	Baa2
Southern Company		6,625		6,625		8			A3
Anglo American plc		5,000		6,451		583		Baa2
ArcelorMittal		5,000		6,388		445		Ba1
Hess Corporation		5,000		6,289		613		Baa2
Northeast Utilities		5,700		5,995		123			A3
Southwestern Energy Company		5,300		5,608		296		Baa3
Grupo Mexico, S.A.B de C.V.		5,000		5,538		520		Baa2
Berkshire Hathaway Inc.		5,375		5,514		142			A1
Joy Global Inc.		5,000		5,462		435		Baa2
Noble Energy, Inc.		5,000		5,354		338		Baa2
Lowe’s Companies, Inc.		5,000		5,325		308			A3
Encana Corporation		5,000		5,271		264		Baa2
FMC Corporation	$	5,000	$	5,221	$	229		Baa1

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Platinum Underwriters Holdings, Ltd.

Municipal Bonds Detail

($ in thousands)

	June 30, 2014
	Par Value		Fair Value			Net Unrealized Gain (Loss)		Credit Quality
Top 10 Exposures by Jurisdiction
Pennsylvania	$	131,911	$	147,703		$	10,632	Aa2
Illinois		122,500		129,320			5,338		A3
Connecticut		99,620		109,250			8,442	Aa3
California		89,235		103,208			11,308	Aa3
Massachusetts		72,315		78,113			4,942	Aa2
Texas		66,275		73,610			5,725	Aaa
Maryland		46,180		53,684			2,384	Aaa
New Jersey		48,675		50,905			171		A2
New York		41,000		45,508			4,392	Aa2
Mississippi	$	42,905	$	45,061		$	1,619	Aa2

	June 30, 2014
	Par Value		Fair Value			Net Unrealized Gain (Loss)		Credit Quality
Top 10 Holdings by Issuer
State of Pennsylvania	$	96,700	$	109,376		$	8,085	Aa2
State of Connecticut		99,620		109,250			8,442	Aa3
State of Illinois		102,000		107,629			4,252		A3
State of California		87,235		101,122			11,236	Aa3
State of Massachusetts		59,010		63,125			3,259	Aa1
State of Texas		50,145		56,355			4,494	Aaa
State of Maryland		38,180		45,465			2,182	Aaa
State of Mississippi		42,905		45,061			1,619	Aa2
State of Hawaii		35,000		40,815			5,706	Aa2
State of Arkansas	$	30,000	$	34,399		$	1,479	Aa1

	June 30, 2014
	Fair Value		% of Total
Credit quality of municipal bond portfolio*
Aaa	$	211,660		16.7	%
Aa		841,544		66.3	%
A		207,627		16.3	%
Baa		8,176		0.6	%
Below investment grade		1,050		0.1	%
Total	$	1,270,057		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,
	2014			2013			2014			2013
Net realized gains (losses) on investments by entity:
Subsidiary domiciled in Bermuda	$	(596	)	$	6,030		$	(1,111	)	$	14,504
Subsidiaries domiciled in the United States		-			5,656			-			10,500
Total	$	(596	)	$	11,686		$	(1,111	)	$	25,004

Net realized gains (losses) on investments by type:
Sale of securities	$	56		$	12,967		$	56		$	27,243
Fair value adjustments on trading securities		(652	)		(1,281	)		(1,167	)		(2,239	)
Total	$	(596	)	$	11,686		$	(1,111	)	$	25,004

Net impairment losses on investments by entity:
Subsidiary domiciled in Bermuda	$	136		$	1,516		$	224		$	1,844
Subsidiaries domiciled in the United States		-			-			-			93
Total	$	136		$	1,516		$	224		$	1,937

Net impairment losses on investments by type of security:
Non-agency residential mortgage-backed securities	$	135		$	1,075		$	223		$	1,411
Sub-prime asset-backed securities		1			441			1			526
Total	$	136		$	1,516		$	224		$	1,937

- 26 -

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, 2014											Twelve Months Ended December 31, 2013
	Gross			Ceded		Net			Paid to Incurred %			Gross			Ceded			Net			Paid to Incurred %
Paid losses and loss adjustment expenses	$	196,022		$	7	$	196,015			253.3	%	$	444,890		$	(476	)	$	445,366			266.0	%
Change in unpaid losses and loss adjustment expenses		(117,906	)		735		(118,641	)					(280,325	)		(2,405	)		(277,920	)
Losses and loss adjustment expenses	$	78,116		$	742	$	77,374					$	164,565		$	(2,881	)	$	167,446

	Analysis of Unpaid Losses and Loss Adjustment Expenses
	As of June 30, 2014 (1)											As of December 31, 2013 (2)
	Gross			Ceded		Net			%			Gross			Ceded			Net			%
Outstanding losses and loss adjustment expenses	$	648,265		$	1,001	$	647,264			41.5	%	$	683,430		$	1,001		$	682,429			40.9	%
Incurred but not reported		912,252			927		911,325			58.5	%		987,935			193			987,742			59.1	%
Unpaid losses and loss adjustment expenses	$	1,560,517		$	1,928	$	1,558,589			100.0	%	$	1,671,365		$	1,194		$	1,670,171			100.0	%

(1)	Net unpaid losses and loss adjustment expenses include the effects of foreign currency exchange rate losses of $7,059 for the six months ended June 30, 2014.

(2)	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.

- 27 -

Platinum Underwriters Holdings, Ltd.

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

($ in thousands)

	Three Months Ended June 30, 2014												Three Months Ended June 30, 2013
	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	$	(3,635	)	$	30,209		$	1,490		$	28,064		$	1,981		$	21,959		$	1,081		$	25,021
Net premium adjustments related to prior years' losses		(42	)		5			-			(37	)		(19	)		(233	)		-			(252	)
Net commission adjustments related to prior years' losses		(175	)		155			(446	)		(466	)		146			473			(837	)		(218	)
Net favorable (unfavorable) development		(3,852	)		30,369			1,044			27,561			2,108			22,199			244			24,551

Major Catastrophe Favorable (Unfavorable) Development
Net loss development related to prior years		1,658			(3	)		(172	)		1,483			22,510			(3	)		(500	)		22,007
Net premium adjustments related to prior years' losses		(450	)		-			-			(450	)		(2,403	)		-			-			(2,403	)
Net commission adjustments related to prior years' losses		(1	)		-			-			(1	)		(8	)		-			-			(8	)
Net favorable (unfavorable) development		1,207			(3	)		(172	)		1,032			20,099			(3	)		(500	)		19,596

Total net favorable (unfavorable) development	$	(2,645	)	$	30,366		$	872		$	28,593		$	22,207		$	22,196		$	(256	)	$	44,147

	Six Months Ended June 30, 2014												Six Months Ended June 30, 2013
	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	$	483		$	62,812		$	1,251		$	64,546		$	16,485		$	45,542		$	5,943		$	67,970
Net premium adjustments related to prior years' losses		(32	)		868			-			836			34			(109	)		-			(75	)
Net commission adjustments related to prior years' losses		(50	)		274			(824	)		(600	)		316			1,146			(5,723	)		(4,261	)
Net favorable (unfavorable) development		401			63,954			427			64,782			16,835			46,579			220			63,634

Major Catastrophe Favorable (Unfavorable) Development
Net loss development related to prior years		11,404			(3	)		(152	)		11,249			39,599			26			(500	)		39,125
Net premium adjustments related to prior years' losses		(462	)		-			(7	)		(469	)		(4,083	)		-			-			(4,083	)
Net commission adjustments related to prior years' losses		(5	)		-			-			(5	)		(31	)		-			-			(31	)
Net favorable (unfavorable) development		10,937			(3	)		(159	)		10,775			35,485			26			(500	)		35,011

Total net favorable (unfavorable) development	$	11,338		$	63,951		$	268		$	75,557		$	52,320		$	46,605		$	(280	)	$	98,645

- 28 -

Platinum Underwriters Holdings, Ltd.

Estimated Exposure to Peak Zone Property Catastrophe Losses

As of July 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*	$	102	$	56	$	202	$	138	$	249	$	183
United States	Earthquake*		28		28		109		61		145		95
Pan-European	Windstorm		55		55		133		133		163		163
Japanese	Earthquake		9		9		146		146		177		177
Japanese	Typhoon*		15		15		66		50		76		60
Canadian	Earthquake*	$	-	$	-	$	34	$	34	$	57	$	52

The United States/Caribbean Hurricane, United States Earthquake, Japanese Typhoon and Canadian Earthquake net loss estimates above include the effects of a $50 million retrocessional cover purchased by the company effective July 1, 2014. This cover provides $50 million of protection per occurrence and in the aggregate for United States all natural perils, Caribbean Wind, Japanese Typhoon 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 perils.

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