On Feb. 20, Platinum Underwriters Holdings
- Book value per share increased 22% to $28.33 from $23.22 per share.
- Net favorable reserve development increased to $23.7 million for the quarter versus $12 million last year.
- Management commented that Jan. 1 renewal pricing was mixed -- some areas had pricing pressure, but U.S. property catastrophe excess of loss business held up well.
- The loss ratio dropped considerably from the lack of catastrophes in 2006, compared with 2005, when hurricanes Katrina, Rita, and Wilma caused industry losses exceeding $80 billion.
(Figures in thousands, except per-share data)
Income Statement Highlights
|
Q4 2006 |
Q4 2005 |
% Change |
|
|---|---|---|---|
|
$315,276 |
$442,825 |
(28.8%) |
|
|
Investment Income |
$50,822 |
$37,195 |
36.6% |
|
Net Income |
$85,950 |
($102,536) |
N/A |
|
EPS |
$1.28 |
($1.94) |
N/A |
Get back to basics with a look at an insurer's income statement.
Ratio Checkup
|
Q4 2006 |
Q4 2005 |
Change* |
|
|---|---|---|---|
|
Loss Ratio |
55.4% |
104.4% |
(48.99) |
|
Expense Ratio |
25.9% |
27.5% |
(1.60) |
|
81.3% |
131.9% |
(50.59) |
|
|
Net Investment Yield |
4.6% |
4.4% |
0.20 |
What do these ratios mean?
Balance Sheet Highlights
|
Assets |
Q4 2006 |
Q4 2005 |
% Change |
|---|---|---|---|
|
Investments |
$3,350,162 |
$3,000,889 |
11.6% |
|
Cash and Equivalents |
$878,775 |
$829,539 |
5.9% |
|
Liabilities |
|||
|---|---|---|---|
|
$2,368,482 |
$2,323,990 |
1.9% |
|
|
Unearned Premiums |
$349,792 |
$502,018 |
(30.3%) |
|
Long-Term Debt |
$292,840 |
$292,840 |
0.0% |
Learn your way around an insurer's balance sheet.
Related Companies:
-
XL Capital
(NYSE:XL) -
AXIS Capital
(NYSE:AXS) -
Endurance Specialty Holding
(NYSE:ENH) -
Arch Capital Group
(NASDAQ:ACGL) -
St. Paul Travelers
(NYSE:STA)
Related Foolishness:
- Insurance Industry Basics: Loss Reserve
- Getting to Know the Insurance Industry
- The Optimistic Prediction of Warren Buffett
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