Platinum Q2 results demonstrate tough market conditions
Net income and premiums written fell in Platinum Underwriters' second quarter results, demonstrating the tough conditions currently facing the market.
Platinum’s net income for the quarter dropped to $36.2 million in 2014, compared with $49.9 million in 2013. Gross premiums written fell by 17 percent during the quarter, but the company improved its combined ratio in a 0.2 percent decrease. Net investment income also fell, down 0.9 percent during the quarter.
"Our results reflect favourable prior period development, strong investment results on a total return basis, no losses from major catastrophes and active capital management. Our book value per common share grew to $67.38 as of June 30, 2014, an increase of 3.1 percent from March 31, 2014,” said Michael Price, Platinum's chief executive officer.
"Absent major events in the insurance or capital markets, we expect continued downward pressure on overall reinsurance rate adequacy. We will continue emphasising profitability over market share while seeking to maintain a position in larger markets by participating on the most attractive business available."
Net premiums written for Platinum's property and marine, casualty and finite risk segments for the quarter were $58.5 million, $54.8 million and $7.0 million, respectively, representing 48.6 percent, 45.5 percent and 5.9 percent, respectively, of total net premiums written. Combined ratios for these segments were 89.5 percent, 59.2 percent and 84.4 percent, respectively.
During the quarter ended June 30, 2014, the company repurchased an aggregate of 556,092 common shares for $35 million.
