Platinum Underwriters Holdings Ltd. (PTP) reported second quarter 2013 operating earnings of $1.23 per share, beating the Zacks Consensus Estimate of 97 cents per share by 26.8%. However, results were a tad behind the year-ago earnings of $1.25 per share.
Including net realized investment gains of $11.7 million, Platinum reported net income of $1.61 per share, down 18.3% year over year.
Quarterly Operational Update
Total revenues of Platinum in the quarter declined12.5% year over year to $170.6 million. However, top line surpassed the Zacks Consensus Estimate of $159 million. The decline was mainly attributable to waning premiums earned (down 1.5% year over year).
Total expenses of Platinum in the quarter were $116.6 million, down 4% year over year mainly.
Net investment income declined 31.9% year over year to $17.8 million during the first quarter of 2013.
Combined ratio during the second quarter of 2013 improved 190 basis points to 74.4%.
Quarterly Segment Update
Property and Marine Segment: Net premiums written during the quarter was $57.4 million, down 7% year over year.
Underwriting income declined 29.6% year over year to $20.4 million in the quarter. Combined ratio deteriorated 1140 basis points year over year to 65.3%.
Casualty Segment: Net premiums written increased 9.6% year over year to $79.7 million in the second quarter of 2013.
Underwriting income improved 184.5% year over year to $16.5 million in the quarter. Combined ratio improved 1410 basis points year over year to 78.2%.
Finite Risk Segment: Net premiums written increased 31.4% year over year to $9.3 million in the second quarter of 2013.
Underwriting loss during the quarter was $0.4 million compared to an underwriting loss of $0.38 million in the year-ago quarter. Combined ratio improved 99 basis points year over year to 105%.
Share Repurchase Update
During the second quarter Platinum purchased 2.7 million shares for $155.9 million.
As of Jun 30, 2013, Platinum had total assets worth $4.05 billion, down 6.6% from 2012 end level.
The debt-to capital ratio of the company as of Jun 30, 2013 was 12.5%, a deterioration of 80 basis points from 11.7% at year end 2012.
Book value per share as of Jun 30, 2013 was $59.67, up 3.1% from 2012 end level.
Platinum presently caries a Zacks Rank #3 (Hold). Among other property and casualty insurers, AmTrust Financial Services Inc. (AFSI), HCI Group Inc. (HCI) and State Auto Financial Corp (STFC) carry a favorable Zacks Rank #1 (Strong Buy).
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