Platinum Underwriters Holdings paid out almost $1.7 million on housing expenses for four of its top executives last year, as disclosed in the company's preliminary proxy statement.

The reinsurer's housing bill for Michael Price, president and chief executive, and Michael Lombardozzi, the general counsel, was $480,000 each in 2009, Business Insider reported.

Robert Porter, the chief executive of Platinum Bermuda, received $432,000, while James Krantz, the chief financial officer, received a more modest $288,000 allowance. These amounts have not changed since at least 2007 and the company, in its filing, describes these as "allowances to compensate for the cost of living in Bermuda".

Lily Outerbridge, a spokeswoman for Platinum, said that the amounts listed for the executives covered both the cost of either rent or a mortgage payment as well as taxes — known as a tax gross-up — to cover the housing perk.

Companies tend to provide housing allowances because renting an apartment or even a house is often cheaper than putting up executives in a hotel for nights on end. However, a night's accommodation at the Fairmont Hamilton Princess during the high season is about $519, equating to well under $200,000 for staying there the whole year.