Platinum Underwriters Holdings Ltd. last night said its net income rose by almost 70 percent last year, despite a fall in revenue.

The Bermuda reinsurer said net earnings for the 12 months totalled $383.3 million, or a record $7.33 per share, compared to $226.2 million in 2008.

For the fourth quarter, net income was $90.8 million or $1.76 per diluted common share, up 41.7 percent from the $64 million earned in the prior-year period.

Total revenue, which includes investment income and net realised gains and losses on investments, as well as net premiums earned, was $1.16 billion in 2009, compared to $1.33 billion in 2008.

For the quarter, revenue was down to $227.6 million from $274.2 million.

Platinum CEO Michael Price said he expected downward pressure on reinsurance rates through 2010, barring a major catastrophe.

"Absent a major event in the insurance or capital markets, we expect the reinsurance marketplace to show deterioration over the course of 2010," Mr. Price said.

"We will continue with our strategy of responding to changes in market conditions and underwriting for profitability, not market share. We believe 2010 will be a challenging year from an underwriting perspective, but market conditions should allow us to participate selectively in a range of reinsurance classes."

The company's book value rose by a record 30.8 percent last year, to $45.22 per share as of December 31, 2009, from $34.58 a year earlier.

Shareholders' equity was $2.08 billion as of December 31, 2009, an increase of $268.3 million, or 14.8 percent, from $1.81 billion at the end of 2008.

"Our results reflect a disciplined approach to underwriting, investing and capital management aided by a low level of major catastrophe loss activity," Mr. Price added.

Combined ratio improved during the fourth quarter by 20.4 percentage points to 77.3 percent — indicating that 77.3 cents of every premium dollar were spent on claims and expenses.

Full-year combined ratio also improved to 76.7 percent from 91.9 percent in 2008.

Platinum Q4 REPORT CARD

Net income: $90.8 million compared to $64 million in 2008

Net premiums written: $200.8 million compared to $237.3 million

Combined ratio: 77.3 percent compared to 97.7 percent in 2008