Platinum 2nd-quarter net income, revenue down from 2013 on soft rates

Second quarter net income fell 27.4% from that of the same period in 2013 to $36.2 million at Hamilton, Bermuda-based Platinum Underwriters Holdings Ltd., as the company blamed soft rates for a decline in premiums.

Revenue for the three months ended June 30 fell 16.2% to $142.9 million while net written premiums dropped 17.8% to $120.3 million in a soft rate environment which the company sees continuing.

“Absent major events in the insurance or capital markets, we expect continued downward pressure on overall reinsurance rate adequacy,” Michael D. Price, Platinum’s CEO, said in the company’s earnings statement.

Platinum’s second quarter combined ratio was 74.2%, compared with 74.4% in the year-ago period.

Net investment slipped 1.0% for the quarter to $17.6 million while six-month figures showed a 2.8% decline to $35,337.

Six-month net income dropped 26.7% to $99.9 million as revenue for the period fell 12.9% to $287.8 million.

Net written premiums for the six months ended June 30 totaled $256.1 million, off 8.9% from the same period last year. Platinum’s six-month combined ratio was 63.5%, compared with 60.7% in the year-ago period.

“We will continue emphasizing profitability over market share while seeking to maintain a position in larger markets by participating on the most attractive business available,” said Mr. Price.