First-quarter catastrophe claims caused Bermuda reinsurer Platinum Underwriters Holdings Ltd. to report an 81 percent fall in first-quarter profit last night.

Platinum announced net earnings of $15.4 million, or 32 cents per share, for the first three months of the year, compared to $$84.9 million, or $1.58 per share, in the same period in 2009.

The company did not specify in its press release the claims it expected to pay from a range of first-quarter catastrophes, including an earthquake in Chile, European windstorm Xynthia, winter storms in the US and hailstorms in Australia.

Last month, Platinum gave a combined preliminary estimate of net losses from all of those events of $85 million.

Platinum was the first of the major players in the Bermuda re/insurance market to post first-quarter results.

The catastrophe-laden start to the year will test the market's underwriting skills and is sure to slash most companies' profits compared to 2009's first quarter.

Platinum chief executive officer Michael Price said: "Platinum produced profits in the first quarter of 2010 despite the numerous events around the world giving rise to insured losses.

"Our results reflect our disciplined approach to underwriting, investing and capital management. Our book value per share was $46.59 as of March 31, 2010, an increase of three percent from December 31, 2009.

"It has been a challenging start to 2010, but we are pleased with the portfolio of treaty reinsurance risks we have been able to assemble thus far. To the extent we cannot fully deploy our capital in the reinsurance business we will seek to return excess capital to our shareholders."

The results for the quarter include net premiums earned of $220.2 million, net favourable development of $49.5 million and net investment income and net realised gains on investments of $43.0 million.

Net premiums written increased $2.2 million, or 0.9 percent, and net premiums earned decreased $27.6 million, or 11.1 percent over the first quarter of 2009.

Combined ratio increased 18.6 percentage points, but at 98.7 percent, indicated underwriting profitability.

Shareholders' equity rose 0.3 percent during the quarter, to $2.08 billion. Book value rose three percent from the end of last year to $46.59, reflecting $63.2 million in share repurchases.