PTP Earnings Beats Est, Lags YoY

Zacks

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.

Financial Position

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.

Zacks Rank

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).

 

Read the Full Research Report on HCI

Read the Full Research Report on PTP

Read the Full Research Report on AFSI

Read the Full Research Report on STFC

Zacks Investment Research



More From Zacks.com
View Comments