Reinsurer Platinum reports nine-month loss of $231M

HAMILTON, Bermuda—Platinum Underwriters Holdings Ltd. reported a catastrophe-driven loss of $231.1 million during the first nine months of the year, compared with a profit of $233.2 million in 2010, the reinsurer reported Tuesday.

Hamilton, Bermuda-based Platinum's net written premiums fell to $497.8 million during the first three quarters of this year from $598.6 million in the same period last year.

Meanwhile, Platinum's net investment income slipped to $96.1 million during the nine-month period from $104.0 million in the comparable period in 2010. Its combined ratio deteriorated to 156.1% during the first nine months this year from 79.3% in the year-ago period.

Platinum lost $53.5 million in the third quarter of this year compared with a $93.7 million gain in net income during the same quarter last year. Its net written premiums for the third quarter amounted to $177.1 compared with $199.4 million in the third quarter of 2010.

Platinum's third-quarter net investment income edged down to $29.8 million from $31.1 million a year ago. The reinsurer's combined ratio worsened to 145.6% in the quarter from 68.1% in the year-ago quarter.

New York-based rating agency Standard & Poor’s Corp. last week downgraded its counterparty credit and financial strength rating on Platinum’s core operating companies to A- from A following the reinsurer’s estimate of losses related to recent catastrophes such as the March 11 Japan earthquake.

“2011 has been a difficult year at Platinum with international catastrophe losses well in excess of our expectations,” Platinum CEO Michael D. Price said in a statement. “Nevertheless, we remain strongly capitalized and stand ready to seize on good reinsurance and investment opportunities.”