Bermuda-based reinsurer Platinum Underwriters Holdings Ltd. last night reported net income of $109.5 million — or a record $2.10 per share for the third quarter.

The quiet Atlantic storm season, combined with strong investment performance in rebounding financial markets, helped Platinum make a strong start to what is expected to be a quarter of bumper profits for Bermuda insurers.

Platinum said its book value soared 11 percent to $43.55 through the July through September period and 25.9 percent through the first nine months of this year.

In the third quarter last year, Platinum lost $43.5 million, as it was hit by large claims emanating from hurricanes Gustav and Ike.

"Our record net income per diluted common share reflects disciplined underwriting, lower than expected catastrophe activity, strong investment results on a total return basis and net favourable reserve development," Platinum CEO Michael Price said.

"We found relatively more attractive underwriting conditions for property and marine reinsurance this year and have accordingly shifted our mix of business toward this segment.

"While we did not repurchase any shares or debt this particular quarter, we intend to continue our practice of returning excess capital in a cost effective manner for the benefit of our shareholders."

Net premiums earned were $229.5 million, a decrease of 18.2 percent from the same quarter last year, and net favourable development of $20.3 million, as compared with net favourable development of $32 million for the third quarter of 2008.

Combined ratio, the percentage of premium dollars spent on claims and expenses, was 72.3 percent compared to 122.6 percent in the same period last year — an improvement of 50.3 percentage points.

Net investment income was $44.7 million, while net realised gains on investments were $22.6 million.

PLATNUM Q3

REPORT CARD

Net income: $109.5 million compared to a loss of $45.3 million in 2007

Combined ratio: 73.2 percent compared to 122.6 percent in 2008

Net premiums earned: $229.5 million compared to $280.7 million in 2008.