Platinum Underwriters Holdings Ltd
Platinum Underwriters — Investor Presentation (February 2004)
22 slides from Platinum Underwriters's investor presentation, Feb 17, 2004
Slide 1: Presentation to Analysts and Investors
The Week of February 16, 2004 Presentation to Analysts and Investors
Slide 2: Forward Looking Statements
Forward Looking Statements The following presentation contains disclosures which are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including the Company's future financial performance. Forward-looking statements include all statements that d
Slide 3: Contents
Contents Overview of Operations Creating and Meeting Expectations Reinsurance Market Corporate Strategies
Slide 4: Overview of Operations
OVERVIEW OF OPERATIONS The Formation of Platinum Our Operating Platform Intercompany Reinsurance Arrangements Our Business
Slide 5: The Formation of Platinum
The Formation of Platinum St. Paul exits the reinsurance business and sponsors Platinum Underwriters Re Platinum hires the best St. Paul Re staff and renews the best St. Paul Re business from January 1, 2002 No exposure to pre-2002 liabilities October 2001 St. Paul Re begins dramatic re-underwrite o
Slide 6: Our Operating Platform
Our Operating Platform Platinum Underwriters Holdings, Ltd. (Bermuda Holding Company) Platinum Underwriters Reinsurance, Inc. (US Reinsurance Company) Platinum Re (UK) Limited (UK Reinsurance Company) GAAP Equity: $463 million $170 million $554 million People: 117 25 8 Offices: NY Chicago Miami Lond
Slide 7: Intercompany Reinsurance Arrangements
Intercompany Reinsurance Arrangements Approximately 70% quota share commencing 1/1/2003. Excludes all business written on St.Paul paper (for tax reasons). 55% quota share commencing 1/1/2003. Excludes all business written on St.Paul paper. Platinum Underwriters Reinsurance, Inc. Domicile: Maryland,
Slide 8: Our Business (1)
Our Business (1) CASUALTY Led by Elizabeth Mitchell Products: Umbrella General Professional D&O WC Cat Casualty Clash International Accident & Health PROPERTY & MARINE Led by Gregory Richardson Products: Property Catastrophe Per Risk Excess Pro Rata Crop Marine Aviation FINITE RISK Led by Gregory Ri
Slide 9: Our Business (2)
Our Business (2) CASUALTY PROPERTY & MARINE FINITE RISK Source: PTP Q4 2003 Financial Supplement Based on net written premium for the twelve months ended December 31, 2003
Slide 10: Creating and Meeting Expectations
CREATING AND MEETING EXPECTATIONS Emphasis on Excess of Loss Underwriters Working with Actuaries Active Involvement of Senior Management in Underwriting 2003 Financial Results Aligning Management and Shareholder Interests
Slide 11: Emphasis on Excess of Loss
Emphasis on Excess of Loss CASUALTY PROPERTY & MARINE Source: PTP Q4 2003 Financial Supplement Based on net written premium for the twelve months ended December 31, 2003 FINITE RISK
Slide 12: Underwriters Working with Actuaries
Underwriters Working with Actuaries Platinum Underwriters Reinsurance, Inc. (US Reinsurance Company) Platinum Re (UK) Limited (UK Reinsurance Company) Platinum Underwriters Bermuda, Ltd. (Bermuda Class 4 Reinsurance Company) Underwriters 50 % Actuaries 35% Underwriters 10 % Actuaries 50% Underwriter
Slide 13: Active Involvement of Senior Management in Underwriting
Active Involvement of Senior Management in Underwriting Executive Position Directly Involved in Underwriting? Gregory Morrison CEO No Michael Price CUO Yes William Robbie CFO No Neal Schmidt Chief Actuary Yes Michael Lombardozzi General Counsel No Elizabeth Mitchell EVP, Platinum US Yes Gregory Rich
Slide 14: 2003 Financial Results
2003 Financial Results PAGE- 13 Nw Combined Ratio nw Prot Property Marine Finite carually Undenorting Leverage Ratio Invested Aeset Leverage Ratio. Book Yield on Invested Aasete (ther Undenoring Expense Ratio Effective Tax Rate EPS (Diluted) ROE (ave. equty incl. SFAS 119) $5 sen001 27.2% 3 270 7001
Slide 15: Aligning Management and Shareholder Interests
Aligning Management and Shareholder Interests 1st tranche of initial option grants have vested and are currently in the money A portion of annual bonuses will be paid in stock for senior executives CEO/CUO: 50% EVPs: 25% - 37.5% Selected SVPs: 0% - 25% Stock ownership guidelines adopted CEO 100,000
Slide 16: Reinsurance Market
REINSURANCE MARKET Reinsurance Market Conditions Reinsurance Market Outlook January 1 Renewals
Slide 17: Reinsurance Market Conditions
Reinsurance Market Conditions Continued realization that historical profit margins have been inadequate Parent companies Rating agencies Public shareholders (In)voluntary withdrawals (CNA Re, Hartford Re, PMA Re, Trenwick, Scor (?), Gerling) Heightened concern over counterparty credit risk / reinsur
Slide 18: Reinsurance Market Outlook
Reinsurance Market Outlook Casualty Improving rate adequacy in most classes Fewer markets to work with Treaty-by-treaty analysis critical International opportunities for lead/quoting market Property & Marine Rates generally adequate Ample capacity at the right price Enhanced perception of risk Recen
Slide 19: January Renewals
January 1 Renewals Casualty Growing regional multi-line business Increased writings in D&O, EPL and surety markets Some opportunities in international liability arena Cut back medical stop loss due to softening pricing New lines include political risk and trade credit ? Improving profitability and o
Slide 20: Corporate Strategies
CORPORATE STRATEGIES PLATINUM,
Slide 21: Corporate Strategies
Corporate Strategies Actively manage our capital Optimize capital deployment between our operating subsidiaries Holding company guaranty of reinsurance contracts written by our U.S. and UK reinsurer's Evaluate capital management tools Improve our investment diversification / returns Extend asset dur
Slide 22: Address and Investor Information
Address: Platinum Underwriters Holdings, Ltd. 69 Pitts Bay Road Pembroke, HM-08 Bermuda Investor Information: Justin Cressall Tel: (441) 298-0753 Fax: (441) 296-0528 www.platinumre.com
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