Platinum Underwriters’ 3Q profit falls 14 pct

Posted by on Oct 21, 2010 in Local News & Alerts | 0 comments

AP

Platinum Underwriters Holdings Ltd. said Wednesday its profit fell by 14 percent in the third quarter as the insurer’s net premiums declined and it sustained hefty losses from an earthquake that rocked New Zealand last month.

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The Bermuda-based company said net income was $93.7 million, or $2.13 a share, in the three months ended Sept. 30. That compares with net income of $109.5 million, or $2.10 a share, in the same period last year.

Analysts polled by Thomson Reuters had forecast earnings of $1.44 a share.

Platinum Underwriters’ CEO Michael Price said the New Zealand earthquake hurt the company’s results, with net losses estimated at $28.5 million.

The company, which sells “reinsurance” policies that insurers buy to cover losses on insurance policies, said net premiums earned shrank 20 percent to $183.4 million from $229.5 million.

The company’s also recorded net investment income of $31.1 million, down from $44.7 million. Net realized gains on investments were $44.4 million, up from $22.6 million.

Platinum Underwriters shares rose 11 cents to $43.40 on Wednesday.

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