A "mild softening" of the casualty market and a greater focus on excess-of-loss business contributed to a $4.2 million dip in first quarter profits for Platinum Underwriters Holdings Limited, according to chief executive officer Michael Price.

The lower net profits, down 5.5 percent at $72.8m, also reflected lower gross written premiums for the company which were $303.1m for the first three months of 2007 compared to $344.3m in the same period of 2006.

Net income for the quarter works out at $1.08 per diluted share.

Although the premiums were lower, Platinum posted a net favourable development of $13.9m compared to a net unfavourable development of $51.7m year-on-year, while the book value of shares increased 4.4 percent to $29.58.

"Our strong first quarter results reflect solid underwriting performance and continued growth in investment income. Net premiums earned were down compared with the same quarter last year primarily due to a greater focus on excess-of-loss business and the mild softening of the casualty market over time," said Mr. Price.

"We believe market conditions will remain good for the balance of the year and that we are well positioned with excellent ratings and incumbent status on a diverse and well priced portfolio of reinsurance business."