Third quarter net income declined 23.9% to $29.1 million at Platinum Underwriters Holdings, Ltd. as net premiums written dropped while net losses and loss adjustment expenses soared for the quarter, the Hamilton, Bermuda-based company said Thursday.
Revenue for the three months ended Sept. 30 dropped 2.6% to $150.2 million as net premiums written slid 10.2% to $123.8 million and net investment income slipped 1.3% to $17.5 million.
Net losses and loss expenses for the quarter jumped 49.9% to $66.2 million while the company’s combined ratio deteriorated to 82.8% from 65.5% in the year-ago period.
“Our results reflect favorable prior period development, investment results on a total return basis, and active capital management, as well as the impact of tornado and hail activity in North America which affected certain regional catastrophe covers and crop/hail programs,” Michael D. Price, Platinum’s CEO, said in the statement.
For the nine months ended Sept. 30, revenue was down 9.6% to $437.9 million and net income was off 26.1% to $129.0 million.
Nine-month net premium written dropped 9.3% to $379.9 million and investment income slipped 2.3% to $52.8 million.
The company’s nine-month combined ratio was 70.1% compared with 62.3% in the year-ago period.
The Bermuda reinsurance market reported generally favorable financial results for the fourth quarter of 2013.