----

----

| x      | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  |
|--------|------------------------------------------------------------------------------------------|
|   | For the quarterly period ended March 31, 2010                                       |
|   |                                                                                     |
|   | OR                                                                                       |
|   |                                                                                     |
| o      | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|   | For the transition period from __________ to __________                                  |

| Platinum Underwriters Holdings, Ltd.                   |
|--------------------------------------------------------|
| (Exact name of registrant as specified in its charter) |

| Bermuda                                                        |   | 98-0416483                           |
|----------------------------------------------------------------|--------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (I.R.S. Employer Identification No.) |

| The Belvedere Building69 Pitts Bay RoadPembroke, Bermuda |   | HM 08      |
|----------------------------------------------------------|--------|------------|
| (Address of principal executive offices)                 |   | (Zip Code) |

| Large accelerated filer |   X |                                          | Accelerated filer         |   |
|-------------------------|---------------|-----------------------------------------------|---------------------------|--------|
| Non-accelerated filer   |          | (Do not check if a smaller reporting company) | Smaller reporting company |   |

----

|                                                       |                                                                                                                                 | Page   |
|------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                       |                                                                                                                                 |   |
| PART I  –  FINANCIAL INFORMATION |                                                                                                                                 |
|                                                       |                                                                                                                                 |   |
| Item 1.                                                    | Financial Statements                                                                                                                 |   |
|                                                       |                                                                                                                                 |   |
|                                                       | Consolidated Balance Sheets as of March 31, 2010 (Unaudited) and December 31, 2009                                         | 1      |
|                                                       |                                                                                                                                 |   |
|                                                       | Consolidated Statements of Operations and Comprehensive Income for the Three Months Ended March 31, 2010 and 2009 (Unaudited)   | 2      |
|                                                       |                                                                                                                                 |   |
|                                                       | Consolidated Statements of Changes in Shareholders’ Equity for the Three Months Ended March 31, 2010 and 2009 (Unaudited) | 3      |
|                                                       |                                                                                                                                 |   |
|                                                       | Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2010 and 2009 (Unaudited)                            | 4      |
|                                                       |                                                                                                                                 |   |
|                                                       | Notes to the Consolidated Financial Statements for the Three Months Ended March 31, 2010 and 2009 (Unaudited)                   | 5      |
|                                                       |                                                                                                                                 |   |
| Item 2.                                                    | Management's Discussion and Analysis of Financial Condition and Results of Operations                                                | 18     |
|                                                       |                                                                                                                                 |   |
| Item 3.                                                    | Quantitative and Qualitative Disclosures about Market Risk                                                                           | 26     |
|                                                       |                                                                                                                                 |   |
| Item 4.                                                    | Controls and Procedures                                                                                                              | 27     |
|                                                       |                                                                                                                                 |   |
| PART II  –  OTHER INFORMATION    |                                                                                                                                 |
|                                                       |                                                                                                                                 |   |
| Item 1A.                                                   | Risk Factors                                                                                                                         | 27     |
|                                                       |                                                                                                                                 |   |
| Item 2.                                                    | Unregistered Sales of Equity Securities and Use of Proceeds                                                                          | 28     |
|                                                       |                                                                                                                                 |   |
| Item 6.                                                    | Exhibits                                                                                                                             | 28     |
|                                                       |                                                                                                                                 |   |
| SIGNATURES                                                 | 29                                                                                                                                   |

----

| ITEM 1. | FINANCIAL STATEMENTS |
|---------|----------------------|

|                                                                                                                                |   | (Unaudited)         |      |   |                   |   |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|-----------|--------|------------------------|--------|
|                                                                                                                                |   | March 31, 2010 |      |   | December 31, 2009 |   |
| ASSETS                                                                                                                              |   |                |      |   |                   |   |
| Investments:                                                                                                                        |   |                |      |   |                   |   |
| Fixed maturity available-for-sale securities at fair value (amortized cost – $3,634,364 and $3,590,081, respectively)         |   | $                   | 3,613,211 |   |                   | $      | 3,514,052 |   |
| Fixed maturity trading securities at fair value (amortized cost – $129,166 and $136,426, respectively)                        |   |                | 136,072   |   |                   |   | 142,566 |   |
| Preferred stocks (cost – $1,879 and $1,879, respectively)                                                                     |   |                | 4,771     |   |                   |   | 3,897 |   |
| Short-term investments                                                                                                              |   |                | 228,732   |   |                   |   | 26,350 |   |
| Total investments                                                                                                                   |   |                | 3,982,786 |   |                   |   | 3,686,865 |   |
| Cash and cash equivalents                                                                                                           |   |                | 533,042   |   |                   |   | 682,784 |   |
| Accrued investment income                                                                                                           |   |                | 32,031    |   |                   |   | 29,834 |   |
| Reinsurance premiums receivable                                                                                                     |   |                | 320,724   |   |                   |   | 269,912 |   |
| Reinsurance recoverable on ceded losses and loss adjustment expenses                                                                |   |                | 19,052    |   |                   |   | 19,240 |   |
| Prepaid reinsurance premiums                                                                                                        |   |                | 8,973     |   |                   |   | 10,470 |   |
| Funds held by ceding companies                                                                                                      |   |                | 85,695    |   |                   |   | 84,478 |   |
| Deferred acquisition costs                                                                                                          |   |                | 43,381    |   |                   |   | 40,427 |   |
| Deferred tax assets                                                                                                                 |   |                | 53,873    |   |                   |   | 63,093 |   |
| Other assets                                                                                                                        |   |                | 14,473    |   |                   |   | 134,475 |   |
| Total assets                                                                                                                        |   | $                   | 5,094,030 |   |                   | $      | 5,021,578 |   |
|                                                                                                                                |   |                |      |   |                   |   |   |   |
| LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                          |   |                |      |   |                   |   |   |   |
| Liabilities                                                                                                                         |   |                |      |   |                   |   |   |   |
| Unpaid losses and loss adjustment expenses                                                                                          |   | $                   | 2,378,253 |   |                   | $      | 2,349,336 |   |
| Unearned premiums                                                                                                                   |   |                | 205,606   |   |                   |   | 180,609 |   |
| Debt obligations                                                                                                                    |   |                | 250,000   |   |                   |   | 250,000 |   |
| Commissions payable                                                                                                                 |   |                | 96,451    |   |                   |   | 90,461 |   |
| Other liabilities                                                                                                                   |   |                | 80,076    |   |                   |   | 73,441 |   |
| Total liabilities                                                                                                                   |   |                | 3,010,386 |   |                   |   | 2,943,847 |   |
|                                                                                                                                |   |                |      |   |                   |   |   |   |
| Shareholders’ Equity                                                                                                          |   |                |      |   |                   |   |   |   |
| Common shares, $.01 par value, 200,000,000 shares authorized, 44,721,561 and 45,942,639 shares issued and outstanding, respectively |   |                | 447       |   |                   |   | 459 |   |
| Additional paid-in capital                                                                                                          |   |                | 829,712   |   |                   |   | 883,425 |   |
| Accumulated other comprehensive loss                                                                                                |   |                | (22,133   | )      |                   |   | (70,005 | ) |
| Retained earnings                                                                                                                   |   |                | 1,275,618 |   |                   |   | 1,263,852 |   |
| Total shareholders’ equity                                                                                                    |   |                | 2,083,644 |   |                   |   | 2,077,731 |   |
|                                                                                                                                |   |                |      |   |                   |   |   |   |
| Total liabilities and shareholders’ equity                                                                                    |   | $                   | 5,094,030 |   |                   | $      | 5,021,578 |   |

----

|                                                                                            |   | 2010   |           |   | 2009   |   |
|-------------------------------------------------------------------------------------------------|--------|--------|----------------|--------|--------|--------|
|                                                                                            |   |   |           |   |   |   |
| Revenue:                                                                                        |   |   |           |   |   |   |
| Net premiums earned                                                                             |   | $      | 220,178        |   |   | $      | 247,752 |   |
| Net investment income                                                                           |   |   | 37,505         |   |   |   | 34,246 |   |
| Net realized gains on investments                                                               |   |   | 5,457          |   |   |   | 20,570 |   |
| Total other-than-temporary impairment losses                                                    |   |   | (12,638)       |   |   |   | (12,411 | ) |
| Portion of impairment losses recognized in accumulated other comprehensive loss                 |   |   |  (5,464)  |   |   |   | 9,003 |   |
| Net impairment losses on investments                                                            |   |   |  (18,102) |   |   |   | (3,408 | ) |
| Other income                                                                                    |   |   | 273            |   |   |   | 232 |   |
| Total revenue                                                                                   |   |   | 245,311        |   |   |   | 299,392 |   |
|                                                                                            |   |   |           |   |   |   |   |   |
| Expenses:                                                                                       |   |   |           |   |   |   |   |   |
| Net losses and loss adjustment expenses                                                         |   |   | 164,568        |   |   |   | 144,164 |   |
| Net acquisition expenses                                                                        |   |   | 37,329         |   |   |   | 40,156 |   |
| Net changes in fair value of derivatives                                                        |   |   | 2,315          |   |   |   | 2,417 |   |
| Operating expenses                                                                              |   |   | 21,741         |   |   |   | 20,868 |   |
| Net foreign currency exchange (gains) losses                                                    |   |   |  (1,229)  |   |   |   | 996 |   |
| Interest expense                                                                                |   |   | 4,760          |   |   |   | 4,755 |   |
| Total expenses                                                                                  |   |   | 229,484        |   |   |   | 213,356 |   |
|                                                                                            |   |   |           |   |   |   |   |   |
| Income before income tax expense                                                                |   |   | 15,827         |   |   |   | 86,036 |   |
| Income tax expense                                                                              |   |   | 406            |   |   |   | 1,114 |   |
|                                                                                            |   |   |           |   |   |   |   |   |
| Net income                                                                                      |   |   | 15,421         |   |   |   | 84,922 |   |
| Preferred dividends                                                                             |   |   | –        |   |   |   | 1,301 |   |
|                                                                                            |   |   |           |   |   |   |   |   |
| Net income attributable to common shareholders                                                  |   | $      | 15,421         |   |   | $      | 83,621 |   |
|                                                                                            |   |   |           |   |   |   |   |   |
| Earnings per common share:                                                                      |   |   |           |   |   |   |   |   |
| Basic earnings per common share                                                                 |   | $      | 0.34           |   |   | $      | 1.69 |   |
| Diluted earnings per common share                                                               |   | $      | 0.32           |   |   | $      | 1.58 |   |
|                                                                                            |   |   |           |   |   |   |   |   |
| Comprehensive income:                                                                           |   |   |           |   |   |   |   |   |
| Net income                                                                                      |   | $      | 15,421         |   |   | $      | 84,922 |   |
| Other comprehensive income:                                                                     |   |   |           |   |   |   |   |   |
| Net change in unrealized gains and losses on available-for-sale securities, net of deferred tax |   |   | 47,872         |   |   |   | (1,576 | ) |
|                                                                                            |   |   |           |   |   |   |   |   |
| Comprehensive income                                                                            |   | $      | 63,293         |   |   | $      | 83,346 |   |
|                                                                                            |   |   |           |   |   |   |   |   |
| Shareholder dividends:                                                                          |   |   |           |   |   |   |   |   |
| Preferred dividends declared                                                                    |   | $      | –        |   |   | $      | 2,602 |   |
| Preferred dividends declared per share                                                          |   |   | –        |   |   |   | 0.45 |   |
| Common shareholder dividends declared                                                           |   |   | 3,655          |   |   |   | 4,262 |   |
| Dividends declared per common share                                                             |   | $      | 0.08           |   |   | $      | 0.08 |   |

----

|                                                                                            |   | 2010   |          |   | 2009   |   |
|-------------------------------------------------------------------------------------------------|--------|--------|---------------|--------|--------|--------|
|                                                                                            |   |   |          |   |   |   |
| Preferred shares:                                                                               |   |   |          |   |   |   |
| Balances at beginning of period                                                                 |   | $      | –       |   |   | $      | 57 |   |
| Conversion of preferred shares                                                                  |   |   | –       |   |   |   | (57 | ) |
| Balances at end of period                                                                       |   |   | –       |   |   |   | – |   |
|                                                                                            |   |   |          |   |   |   |   |   |
| Common shares:                                                                                  |   |   |          |   |   |   |   |   |
| Balances at beginning of period                                                                 |   |   | 459           |   |   |   | 475 |   |
| Exercise of common share options                                                                |   |   | 2             |   |   |   | – |   |
| Issuance of common shares                                                                       |   |   | –       |   |   |   | 1 |   |
| Settlement of equity awards                                                                     |   |   | 3             |   |   |   | 2 |   |
| Conversion of preferred shares                                                                  |   |   | –       |   |   |   | 57 |   |
| Purchase of common shares                                                                       |   |   | (17           | )      |   |   | (23 | ) |
| Balances at end of period                                                                       |   |   | 447           |   |   |   | 512 |   |
|                                                                                            |   |   |          |   |   |   |   |   |
| Additional paid-in capital:                                                                     |   |   |          |   |   |   |   |   |
| Balances at beginning of period                                                                 |   |   | 883,425       |   |   |   | 1,114,135 |   |
| Exercise of common share options                                                                |   |   | 6,811         |   |   |   | – |   |
| Issuance of common shares                                                                       |   |   | 5             |   |   |   | 247 |   |
| Share based compensation                                                                        |   |   | 3,559         |   |   |   | 3,144 |   |
| Settlement of equity awards                                                                     |   |   | (966          | )      |   |   | (1,024 | ) |
| Purchase of common shares                                                                       |   |   | (63,204       | )      |   |   | (60,068 | ) |
| Tax benefit of common share options                                                             |   |   | 82            |   |   |   | – |   |
| Balances at end of period                                                                       |   |   | 829,712       |   |   |   | 1,056,434 |   |
|                                                                                            |   |   |          |   |   |   |   |   |
| Accumulated other comprehensive loss:                                                           |   |   |          |   |   |   |   |   |
| Balances at beginning of period                                                                 |   |   | (70,005       | )      |   |   | (188,987 | ) |
| Cumulative effect of accounting change, net of deferred tax                                     |   |   | –       |   |   |   | (14,244 | ) |
| Noncredit component of impairment losses on available-for-sale securities, net of deferred tax  |   |   | (4,190        | )      |   |   | (9,003 | ) |
| Net change in unrealized gains and losses on available-for-sale securities, net of deferred tax |   |   | 52,062        |   |   |   | 7,427 |   |
| Balances at end of period                                                                       |   |   |  (22,133 | )      |   |   | (204,807 | ) |
|                                                                                            |   |   |          |   |   |   |   |   |
| Retained earnings:                                                                              |   |   |          |   |   |   |   |   |
| Balances at beginning of period                                                                 |   |   | 1,263,852     |   |   |   | 883,717 |   |
| Cumulative effect of accounting change, net of deferred tax                                     |   |   | –       |   |   |   | 14,244 |   |
| Net income                                                                                      |   |   | 15,421        |   |   |   | 84,922 |   |
| Preferred share dividends                                                                       |   |   | –       |   |   |   | (1,301 | ) |
| Common share dividends                                                                          |   |   |  (3,655  | )      |   |   | (4,262 | ) |
| Balances at end of period                                                                       |   |   | 1,275,618     |   |   |   | 977,320 |   |
|                                                                                            |   |   |          |   |   |   |   |   |
| Total shareholders’ equity                                                                |   | $      | 2,083,644     |   |   | $      | 1,829,459 |   |

----

|                                                               |   | 2010   |           |   | 2009   |   |
|--------------------------------------------------------------------|--------|--------|----------------|--------|--------|--------|
|                                                               |   |   |           |   |   |   |
| Operating Activities:                                              |   |   |           |   |   |   |
| Net income                                                         |   | $      | 15,421         |   |   | $      | 84,922 |   |
| Adjustments to reconcile net income to cash used in operations:    |   |   |           |   |   |   |   |   |
| Depreciation and amortization                                      |   |   | 2,794          |   |   |   | 7,663 |   |
| Net realized gains on investments                                  |   |   | (5,457         | )      |   |   | (20,570 | ) |
| Net impairment losses on investments                               |   |   | 18,102         |   |   |   | 3,408 |   |
| Net foreign currency exchange (gains) losses                       |   |   | (1,229         | )      |   |   | 996 |   |
| Share-based compensation                                           |   |   | 3,559          |   |   |   | 3,144 |   |
| Deferred income tax expense                                        |   |   | 1,364          |   |   |   | 1,633 |   |
| Trading securities activities, net                                 |   |   | 1,403          |   |   |   | 204,390 |   |
| Changes in assets and liabilities:                                 |   |   |           |   |   |   |   |   |
| Increase in accrued investment income                              |   |   | (2,308         | )      |   |   | (3,661 | ) |
| Increase in reinsurance premiums receivable                        |   |   | (51,557        | )      |   |   | (49,450 | ) |
| Increase in funds held by ceding companies                         |   |   | (1,373         | )      |   |   | (792 | ) |
| (Increase) decrease in deferred acquisition costs                  |   |   | (3,041         | )      |   |   | 2,805 |   |
| Increase in net unpaid losses and loss adjustment expenses         |   |   | 39,080         |   |   |   | 38,077 |   |
| Increase (decrease) in net unearned premiums                       |   |   | 27,249         |   |   |   | (2,480 | ) |
| Increase in commissions payable                                    |   |   | 6,100          |   |   |   | 1,837 |   |
| Changes in other assets and liabilities                            |   |   | (15,683        | )      |   |   | (1,247 | ) |
| Other, net                                                         |   |   | –        |   |   |   | (1,081 | ) |
| Net cash provided by operating activities                          |   |   | 34,424         |   |   |   | 269,594 |   |
|                                                               |   |   |           |   |   |   |   |   |
| Investing Activities:                                              |   |   |           |   |   |   |   |   |
| Proceeds from sale of available-for-sale securities                |   |   | 280,339        |   |   |   | 128,941 |   |
| Proceeds from maturity or paydown of available-for-sale securities |   |   | 87,452         |   |   |   | 186,916 |   |
| Acquisition of available-for-sale securities                       |   |   |  (286,490 | )      |   |   | (1,044,698 | ) |
| Acquisition of trading securities                                  |   |   | –        |   |   |   | (14,525 | ) |
| Net change in short-term investments                               |   |   |  (202,361 | )      |   |   | 38,585 |   |
| Net cash used in investing activities                              |   |   | (121,060       | )      |   |   | (704,781 | ) |
|                                                               |   |   |           |   |   |   |   |   |
| Financing Activities:                                              |   |   |           |   |   |   |   |   |
| Dividends paid to preferred shareholders                           |   |   | –        |   |   |   | (2,602 | ) |
| Dividends paid to common shareholders                              |   |   | (3,655         | )      |   |   | (4,262 | ) |
| Purchase of common shares                                          |   |   |  (63,221  | )      |   |   | (60,091 | ) |
| Proceeds from exercise of common share options                     |   |   | 6,813          |   |   |   | – |   |
| Net cash used in financing activities                              |   |   | (60,063        | )      |   |   | (66,955 | ) |
|                                                               |   |   |           |   |   |   |   |   |
| Effect of foreign currency exchange rate changes on cash           |   |   | (3,043         | )      |   |   | (1,793 | ) |
|                                                               |   |   |           |   |   |   |   |   |
| Net decrease in cash and cash equivalents                          |   |   | (149,742       | )      |   |   | (503,935 | ) |
| Cash and cash equivalents at beginning of period                   |   |   | 682,784        |   |   |   | 813,017 |   |
|                                                               |   |   |           |   |   |   |   |   |
| Cash and cash equivalents at end of period                         |   | $      | 533,042        |   |   | $      | 309,082 |   |
|                                                               |   |   |           |   |   |   |   |   |
| Supplemental disclosures of cash flow information:                 |   |   |           |   |   |   |   |   |
| Income taxes paid (refunded)                                       |   | $      | 7,286          |   |   | $      | (7,122 | ) |
| Interest paid                                                      |   | $      | –        |   |   | $      | – |   |

----

| 1. | Basis of Presentation and Significant Accounting Policies |
|----|-----------------------------------------------------------|

| 2. | Investments |
|----|-------------|

|                                               |   |           |      |   |                 |   |    | Gross Unrealized Losses |   |   |    |                       |
|----------------------------------------------------|--------|----------------|-----------|--------|----------------------|--------|---------|-------------------------|--------|--------|---------|----------------------------|
|                                               |   | Amortized Cost |      |   | GrossUnrealizedGains |   |    | Non-OTTI                |   |   |    | Non-credit portion of OTTI |   |   | Fair Value |   |
| March 31, 2010:                               |   |           |      |   |                 |   |    |                    |   |   |    |                       |   |   |   |
| U.S. Government                                    |   | $              | 614,084   |   |                 |   | 1,408   |                    |   |   | 2,646   |                       |   |   | – |   |   | $ | 612,846 |   |
| U.S. Government agencies                           |   |           | 100,000   |   |                 |   | 834     |                    |   |   | – |                       |   |   | – |   |   |   | 100,834 |   |
| Corporate bonds                                    |   |           | 423,457   |   |                 |   | 19,739  |                    |   |   | 6,018   |                       |   |   | – |   |   |   | 437,178 |   |
| Commercial mortgage-backed securities              |   |           | 228,260   |   |                 |   | 3,847   |                    |   |   | 8,234   |                       |   |   | 1,386 |   |   |   | 222,487 |   |
| Residential mortgage-backed securities             |   |           | 682,114   |   |                 |   | 5,915   |                    |   |   | 35,952  |                       |   |   | 15,365 |   |   |   | 636,712 |   |
| Asset-backed securities                            |   |           | 46,651    |   |                 |   | – |                    |   |   | 11,077  |                       |   |   | 6,473 |   |   |   | 29,101 |   |
| Municipal bonds                                    |   |           | 891,889   |   |                 |   | 20,055  |                    |   |   | 2,262   |                       |   |   | – |   |   |   | 909,682 |   |
| Non-U.S. governments                               |   |           | 647,909   |   |                 |   | 16,591  |                    |   |   | 129     |                       |   |   | – |   |   |   | 664,371 |   |
| Total fixed maturity available-for-sale securities |   |           | 3,634,364 |   |                 |   | 68,389  |                    |   |   | 66,318  |                       |   |   | 23,224 |   |   |   | 3,613,211 |   |
| Preferred stocks                                   |   |           | 1,879     |   |                 |   | 2,892   |                    |   |   | – |                       |   |   | – |   |   |   | 4,771 |   |
| Total available-for-sale securities                |   | $              | 3,636,243 |   |                 |   | 71,281  |                    |   |   | 66,318  |                       |   |   | 23,224 |   |   | $ | 3,617,982 |   |

----

|                                               |   |   |           |   |   |   |                 |   |   |   | Gross Unrealized Losses |   |   |   |                       |   |
|----------------------------------------------------|--------|--------|----------------|--------|--------|--------|----------------------|--------|--------|--------|-------------------------|--------|--------|--------|----------------------------|--------|
|                                               |   |   | Amortized Cost |   |   |   | GrossUnrealizedGains |   |   |   | Non-OTTI                |   |   |   | Non-credit portion of OTTI |   |   |   | Fair Value |   |
| December 31, 2009:                            |   |   |           |   |   |   |                 |   |   |   |                    |   |   |   |                       |   |   |   |   |   |
| U.S. Government                                    |   | $      | 614,224        |   |   |   | 270                  |   |   |   | 5,797                   |   |   |   | –                    |   |   | $ | 608,697 |   |
| U.S. Government agencies                           |   |   | 100,000        |   |   |   | 1,082                |   |   |   | –                 |   |   |   | –                    |   |   |   | 101,082 |   |
| Corporate bonds                                    |   |   | 467,640        |   |   |   | 18,446               |   |   |   | 9,100                   |   |   |   | –                    |   |   |   | 476,986 |   |
| Commercial mortgage-backed securities              |   |   | 243,176        |   |   |   | 376                  |   |   |   | 26,253                  |   |   |   | 2,279                      |   |   |   | 215,020 |   |
| Residential mortgage-backed securities             |   |   | 767,338        |   |   |   | 3,158                |   |   |   | 39,142                  |   |   |   | 16,651                     |   |   |   | 714,703 |   |
| Asset-backed securities                            |   |   | 84,396         |   |   |   | 1,311                |   |   |   | 14,606                  |   |   |   | 11,402                     |   |   |   | 59,699 |   |
| Municipal bonds                                    |   |   | 744,677        |   |   |   | 19,172               |   |   |   | 4,348                   |   |   |   | –                    |   |   |   | 759,501 |   |
| Non-U.S. governments                               |   |   | 568,630        |   |   |   | 10,359               |   |   |   | 625                     |   |   |   | –                    |   |   |   | 578,364 |   |
| Total fixed maturity available-for-sale securities |   |   | 3,590,081      |   |   |   | 54,174               |   |   |   | 99,871                  |   |   |   | 30,332                     |   |   |   | 3,514,052 |   |
| Preferred stocks                                   |   |   | 1,879          |   |   |   | 2,018                |   |   |   | –                 |   |   |   | –                    |   |   |   | 3,897 |   |
| Total available-for-sale securities                |   | $      | 3,591,960      |   |   |   | 56,192               |   |   |   | 99,871                  |   |   |   | 30,332                     |   |   | $ | 3,517,949 |   |

|                                    |   |                |    |   |                   |   |
|-----------------------------------------|--------|---------------------|---------|--------|------------------------|--------|
|                                    |   | March 31, 2010 |    |   | December 31, 2009 |   |
|                                    |   |                |    |   |                   |   |
| Insurance-linked securities             |   | $                   | 26,461  |   |                   | $      | 25,682 |   |
| Non-U.S. dollar denominated securities: |   |                |    |   |                   |   |   |   |
| U.S. Government agencies                |   |                | 15,507  |   |                   |   | 16,423 |   |
| Corporate bonds                         |   |                | 72      |   |                   |   | 77 |   |
| Non-U.S. governments                    |   |                | 94,032  |   |                   |   | 100,384 |   |
| Total trading securities                |   | $                   | 136,072 |   |                   | $      | 142,566 |   |

|                                                        |   |   |    |   |   |   |
|-------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                        |   | 2010   |    |   | 2009   |   |
|                                                        |   |   |    |   |   |   |
| Available-for-sale securities                               |   | $      | 55,728  |   |   | $      | (17,008 | ) |
| Deferred tax on available-for-sale securities               |   |   | (7,856  | )      |   |   | 1,188 |   |
| Cumulative effect of accounting change, net of deferred tax |   |   | – |   |   |   | 14,244 |   |
| Net change in unrealized gains and losses                   |   | $      | 47,872  |   |   | $      | (1,576 | ) |

----

|                                   |   | March 31, 2010 |    |   | December 31, 2009 |   |
|----------------------------------------|--------|---------------------|---------|--------|------------------------|--------|
|                                   |   | Fair Value          |    |   | UnrealizedLoss         |   |   | Fair Value |   |   | UnrealizedLoss |   |
|                                   |   |                |    |   |                   |   |   |   |   |   |   |   |
| Less than twelve months:               |   |                |    |   |                   |   |   |   |   |   |   |   |
| U.S. Government                        |   | $                   | 263,633 |   |                   |   | 2,646 |   |   |   | 594,343 |   |   | $ | 5,797 |   |
| U.S. Government agencies               |   |                | – |   |                   |   | – |   |   |   | – |   |   |   | – |   |
| Corporate bonds                        |   |                | 17,070  |   |                   |   | 210 |   |   |   | 34,393 |   |   |   | 281 |   |
| Commercial mortgage-backed securities  |   |                | – |   |                   |   | – |   |   |   | 18,101 |   |   |   | 244 |   |
| Residential mortgage-backed securities |   |                | 120,669 |   |                   |   | 206 |   |   |   | 540,606 |   |   |   | 10,446 |   |
| Asset-backed securities                |   |                | – |   |                   |   | – |   |   |   | 1,075 |   |   |   | 445 |   |
| Municipal bonds                        |   |                | 248,227 |   |                   |   | 2,152 |   |   |   | 187,159 |   |   |   | 4,244 |   |
| Non-U.S. governments                   |   |                | 44,898  |   |                   |   | 87 |   |   |   | 59,815 |   |   |   | 565 |   |
| Preferred stocks                       |   |                | – |   |                   |   | – |   |   |   | – |   |   |   | – |   |
| Total                                  |   | $                   | 694,497 |   |                   |   | 5,301 |   |   |   | 1,435,492 |   |   | $ | 22,022 |   |
|                                   |   |                |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Twelve months or more:                 |   |                |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Government                        |   | $                   | – |   |                   |   | – |   |   |   | – |   |   | $ | – |   |
| U.S. Government agencies               |   |                | – |   |                   |   | – |   |   |   | – |   |   |   | – |   |
| Corporate bonds                        |   |                | 59,359  |   |                   |   | 5,808 |   |   |   | 59,423 |   |   |   | 8,819 |   |
| Commercial mortgage-backed securities  |   |                | 69,900  |   |                   |   | 9,620 |   |   |   | 160,039 |   |   |   | 28,288 |   |
| Residential mortgage-backed securities |   |                | 103,382 |   |                   |   | 51,111 |   |   |   | 94,969 |   |   |   | 45,347 |   |
| Asset-backed securities                |   |                | 29,101  |   |                   |   | 17,550 |   |   |   | 28,238 |   |   |   | 25,563 |   |
| Municipal bonds                        |   |                | 3,001   |   |                   |   | 110 |   |   |   | 3,015 |   |   |   | 104 |   |
| Non-U.S. governments                   |   |                | 1,679   |   |                   |   | 42 |   |   |   | 1,661 |   |   |   | 60 |   |
| Preferred stocks                       |   |                | – |   |                   |   | – |   |   |   | – |   |   |   | – |   |
| Total                                  |   | $                   | 266,422 |   |                   |   | 84,241 |   |   |   | 347,345 |   |   | $ | 108,181 |   |
|                                   |   |                |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Total unrealized losses:               |   |                |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Government                        |   | $                   | 263,633 |   |                   |   | 2,646 |   |   |   | 594,343 |   |   | $ | 5,797 |   |
| U.S. Government agencies               |   |                | – |   |                   |   | – |   |   |   | – |   |   |   | – |   |
| Corporate bonds                        |   |                | 76,429  |   |                   |   | 6,018 |   |   |   | 93,816 |   |   |   | 9,100 |   |
| Commercial mortgage-backed securities  |   |                | 69,900  |   |                   |   | 9,620 |   |   |   | 178,140 |   |   |   | 28,532 |   |
| Residential mortgage-backed securities |   |                | 224,051 |   |                   |   | 51,317 |   |   |   | 635,575 |   |   |   | 55,793 |   |
| Asset-backed securities                |   |                | 29,101  |   |                   |   | 17,550 |   |   |   | 29,313 |   |   |   | 26,008 |   |
| Municipal bonds                        |   |                | 251,228 |   |                   |   | 2,262 |   |   |   | 190,174 |   |   |   | 4,348 |   |
| Non-U.S. governments                   |   |                | 46,577  |   |                   |   | 129 |   |   |   | 61,476 |   |   |   | 625 |   |
| Preferred stocks                       |   |                | – |   |                   |   | – |   |   |   | – |   |   |   | – |   |
| Total                                  |   | $                   | 960,919 |   |                   |   | 89,542 |   |   |   | 1,782,837 |   |   | $ | 130,203 |   |

----

|                                                           |   | 2010   |    |   | 2009   |   |
|----------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Beginning balance, January 1                                   |   | $      | 18,695  |   |   | $      | – |   |
| Cumulative effect of accounting change                         |   |   | – |   |   |   | 2,300 |   |
| Credit losses on securities not previously impaired            |   |   | 6,675   |   |   |   | 945 |   |
| Additional credit losses on securities previously impaired     |   |   | 11,427  |   |   |   | 1,255 |   |
| Reduction for increases in cash flows expected to be collected |   |   | (245    | )      |   |   | – |   |
| Ending balance, March 31                                  |   | $      | 36,552  |   |   | $      | 4,500 |   |

----

|                                                 |   |   |   |   |   |   |
|------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                 |   | 2010   |   |   | 2009   |   |
|                                                 |   |   |   |   |   |   |
| Fixed maturity securities                            |   | $      | 38,064 |   |   | $      | 33,566 |   |
| Short-term investments and cash and cash equivalents |   |   | 206    |   |   |   | 976 |   |
| Funds held                                           |   |   | 453    |   |   |   | 872 |   |
| Subtotal                                             |   |   | 38,723 |   |   |   | 35,414 |   |
| Less investment expenses                             |   |   | 1,218  |   |   |   | 1,168 |   |
| Net investment income                                |   | $      | 37,505 |   |   | $      | 34,246 |   |

|                                             |   |   |   |   |   |   |
|--------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                             |   | 2010   |   |   | 2009   |   |
| Net gains (losses) on the sale of investments:   |   |   |   |   |   |   |
| Gross realized gains                             |   | $      | 4,713  |   |   | $      | 22,162 |   |
| Gross realized losses                            |   |   | (2     | )      |   |   | (393 | ) |
| Subtotal                                         |   |   | 4,711  |   |   |   | 21,769 |   |
| Mark-to-market adjustments on trading securities |   |   | 746    |   |   |   | (1,199 | ) |
| Net realized gains on investments                |   | $      | 5,457  |   |   | $      | 20,570 |   |

|                                        |   |          |      |   |       |   |
|---------------------------------------------|--------|---------------|-----------|--------|------------|--------|
|                                        |   | AmortizedCost |      |   | Fair Value |   |
|                                        |   |          |      |   |       |   |
| Due in one year or less                     |   | $             | 112,183   |   |       | $      | 114,212 |   |
| Due from one to five years                  |   |          | 1,423,350 |   |       |   | 1,461,191 |   |
| Due from five to ten years                  |   |          | 719,582   |   |       |   | 730,412 |   |
| Due in ten or more years                    |   |          | 551,390   |   |       |   | 555,168 |   |
| Mortgage-backed and asset-backed securities |   |          | 957,025   |   |       |   | 888,300 |   |
| Total                                       |   | $             | 3,763,530 |   |       | $      | 3,749,283 |   |

| 3. | Fair Value Measurements |
|----|-------------------------|

| Level 1: | Valuations are based on unadjusted quoted prices in active markets for identical financial assets or liabilities; |
|----------|-------------------------------------------------------------------------------------------------------------------|

| Level 2: | Valuations of financial assets and liabilities are based on prices obtained from independent pricing vendors, index providers, or broker-dealers using observable inputs; and |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Level 3: | Valuations are based on unobservable inputs for assets and liabilities where there is little or no market activity.  Management’s assumptions are used in internal valuation pricing models to determine the fair value of financial assets or liabilities. |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                   |   |   |      |   | Fair Value Measurement Using:           |   |
|----------------------------------------|--------|--------|-----------|--------|-----------------------------------------|--------|
|                                   |   | Total  |      |   | Quoted Prices in Active Markets Level 1 |   |   | Significant Other Observable InputsLevel 2 |   |   | Significant Other Unobservable InputsLevel 3 |   |
|                                   |   |   |      |   |                                    |   |   |   |   |   |   |   |
| March 31, 2010                    |   |   |      |   |                                    |   |   |   |   |   |   |   |
| Financial assets:                      |   |   |      |   |                                    |   |   |   |   |   |   |   |
| U.S. Government                        |   | $      | 612,846   |   |                                    |   | 612,846 |   |   |   | – |   |   | $ | – |   |
| U.S. Government agencies               |   |   | 116,341   |   |                                    |   | – |   |   |   | 116,341 |   |   |   | – |   |
| Corporate bonds                        |   |   | 437,250   |   |                                    |   | 28,891 |   |   |   | 408,359 |   |   |   | – |   |
| Commercial mortgage-backed securities  |   |   | 222,487   |   |                                    |   | – |   |   |   | 222,487 |   |   |   | – |   |
| Residential mortgage-backed securities |   |   | 636,712   |   |                                    |   | – |   |   |   | 636,712 |   |   |   | – |   |
| Asset-backed securities                |   |   | 29,101    |   |                                    |   | – |   |   |   | 29,101 |   |   |   | – |   |
| Municipal bonds                        |   |   | 909,682   |   |                                    |   | – |   |   |   | 909,682 |   |   |   | – |   |
| Non-U.S. governments                   |   |   | 758,403   |   |                                    |   | 33,437 |   |   |   | 724,966 |   |   |   | – |   |
| Insurance-linked securities            |   |   | 26,461    |   |                                    |   | – |   |   |   | 26,461 |   |   |   | – |   |
| Preferred stocks                       |   |   | 4,771     |   |                                    |   | 4,771 |   |   |   | – |   |   |   | – |   |
| Short-term investments                 |   |   | 228,732   |   |                                    |   | – |   |   |   | 228,732 |   |   |   | – |   |
| Total                                  |   | $      | 3,982,786 |   |                                    |   | 679,945 |   |   |   | 3,302,841 |   |   | $ | – |   |
|                                   |   |   |      |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Financial liabilities:                 |   |   |      |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Derivative instrument                  |   |   | 4,802     |   |                                    |   | – |   |   |   | – |   |   |   | 4,802 |   |
| Total                                  |   | $      | 4,802     |   |                                    |   | – |   |   |   | – |   |   | $ | 4,802 |   |
|                                   |   |   |      |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2009:                |   |   |      |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Financial assets:                      |   |   |      |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Government                        |   | $      | 608,697   |   |                                    |   | 608,697 |   |   |   | – |   |   | $ | – |   |
| U.S. Government agencies               |   |   | 117,505   |   |                                    |   | – |   |   |   | 117,505 |   |   |   | – |   |
| Corporate bonds                        |   |   | 477,063   |   |                                    |   | 27,760 |   |   |   | 449,303 |   |   |   | – |   |
| Commercial mortgage-backed securities  |   |   | 215,020   |   |                                    |   | – |   |   |   | 215,020 |   |   |   | – |   |
| Residential mortgage-backed securities |   |   | 714,703   |   |                                    |   | – |   |   |   | 714,703 |   |   |   | – |   |
| Asset-backed securities                |   |   | 59,699    |   |                                    |   | – |   |   |   | 59,699 |   |   |   | – |   |
| Municipal bonds                        |   |   | 759,501   |   |                                    |   | – |   |   |   | 759,501 |   |   |   | – |   |
| Non-U.S. governments                   |   |   | 678,748   |   |                                    |   | 35,311 |   |   |   | 643,437 |   |   |   | – |   |
| Insurance-linked securities            |   |   | 25,682    |   |                                    |   | – |   |   |   | 25,682 |   |   |   | – |   |
| Preferred stocks                       |   |   | 3,897     |   |                                    |   | 3,897 |   |   |   | – |   |   |   | – |   |
| Short-term investments                 |   |   | 26,350    |   |                                    |   | – |   |   |   | 26,350 |   |   |   | – |   |
| Total                                  |   | $      | 3,686,865 |   |                                    |   | 675,665 |   |   |   | 3,011,200 |   |   | $ | – |   |
|                                   |   |   |      |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Financial liabilities:                 |   |   |      |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Derivative instrument                  |   |   | 4,677     |   |                                    |   | – |   |   |   | – |   |   |   | 4,677 |   |
| Total                                  |   | $      | 4,677     |   |                                    |   | – |   |   |   | – |   |   | $ | 4,677 |   |

----

| U.S. Government                             | The fair values of U.S. Government securities are based on quoted prices in active markets for identical assets, with the fair value measurement classified as Level 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|---------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| U.S Government agencies                     | U.S. Government agencies consist of securities issued by financial institutions guaranteed by the Federal Deposit Insurance Corporation.  The observable inputs used to price these securities may include the spread above the risk-free yield curve, reported trades and broker-dealer quotes, with the fair value measurement classified as Level 2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Corporate bonds                             | Our corporate bond portfolio is comprised of corporate issues and redeemable preferred stocks.  The observable inputs used to price corporate issues may include the spread above the risk-free yield curve, reported trades, broker-dealer quotes, benchmark securities, bids, credit risks and industry and economic indicators, with the fair value measurement classified as Level 2.  Exchange traded redeemable preferred stocks are priced based on quoted prices in active markets for identical assets, with the fair value measurement classified as Level 1.                                                                                                                                                                                                                                                                                             |
|                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Commercial mortgage-backed securities       | The fair values of CMBS are determined based on observable inputs that may include the spread above the risk-free yield curve, reported trades, broker-dealer quotes, bids, security cash flows and structures, delinquencies, loss severities and default rates, with the fair value measurement classified as Level 2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Residential mortgage-backed securities      | Our RMBS portfolio is comprised of securities issued by U.S. Government agencies and by non-agency institutions.  The observable inputs used to price U.S. Government agency RMBS may include the spread above the risk-free yield curve, reported trades, broker-dealer quotes, bids, loan level information and prepayment speeds, with the fair value measurement classified as Level 2.  The observable inputs used to price non-agency RMBS may include the spread above the risk-free yield curve, reported trades, broker-dealer quotes, bids, security cash flows and structures, prepayment speeds, delinquencies, loss severities and default rates, with the fair value measurement classified as Level 2.                                                                                                                                               |
|                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Asset-backed securities (“ABS”) | The fair values of ABS are determined based on observable inputs that may include the spread above the risk-free yield curve, reported trades, broker-dealer quotes, bids, security cash flows and structures, type of collateral, prepayment speeds, delinquencies, loss severities and default rates, with the fair value measurement classified as Level 2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Municipal bonds                             | The fair values of municipal bonds are determined based on observable inputs that may include the spread above the risk-free yield curve, reported trades, broker-dealer quotes, benchmark securities, bids, credit risks and industry and economic indicators, with the fair value measurement classified as Level 2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Non-U.S. governments                        | Our non-U.S. government bond portfolio consists of securities issued primarily by governments, provinces, agencies and supranationals as well as debt issued by financial institutions that is guaranteed by a non-U.S. government.  The fair values of non-U.S. government local currency denominated securities are based on quoted prices in active markets for identical or similar assets, with the fair value measurement classified as Level 1 or Level 2.  The fair values of securities issued by governments, provinces, agencies and supranationals as well as debt issued by financial institutions that is guaranteed by a non-U.S. government are determined based on observable inputs that may include the spread above the risk-free yield curve, reported trades and broker-dealer quotes, with the fair value measurement classified as Level 2. |
|                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Insurance-linked securities                 | The fair values of insurance-linked securities are determined based on observable inputs that may include the spread above the risk-free yield curve, reported trades, broker-dealer quotes, benchmark securities, bids, credit risks and specific catastrophic events, with the fair value measurement classified as Level 2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Preferred stocks                            | Exchange traded preferred stocks are priced based on quoted prices in active markets for identical assets.  These securities are priced using the market approach and the fair value measurement is classified as Level 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Short-term investments                      | Short-term investments are generally carried at amortized cost, which approximates fair value and are classified as Level 2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Derivative instrument                       | The fair value of our derivative reinsurance contract is determined by management primarily using unobservable inputs through the application of our own assumptions and internal valuation pricing models.  Because the valuation is based on the use of significant unobservable inputs, the valuation is classified as Level 3.  Unobservable inputs used in the internal valuation pricing model include the unpaid contract premiums, probability of losses triggered under the covered perils for first and second events, the remaining time to the end of the annual contract period and the seasonality of risks.  See Note 5 for additional disclosure on our derivative instrument.                                                                                                                                                            |

----

|                                                                                                                             |   | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) |    |
|----------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------|---------|
|                                                                                                                             |   |                                                                    |    |
| March 31, 2010:                                                                                                                  |   |                                                                    |    |
| Beginning balance at January 1                                                                                              |   | $                                                                       | (4,677  | ) |
| Purchases                                                                                                                        |   |                                                                    | 2,190   |   |
| Sales, maturities and paydowns                                                                                                   |   |                                                                    | – |   |
| Total net realized gains (losses) included in earnings                                                                           |   |                                                                    | – |   |
| Total net changes in fair value of derivatives included in earnings                                                              |   |                                                                    | (2,315  | ) |
| Total net unrealized gains (losses) included in comprehensive income                                                             |   |                                                                    | – |   |
| Transfers in and/or out of Level 3                                                                                               |   |                                                                    | – |   |
| Ending balance at March 31                                                                                                       |   | $                                                                       | (4,802  | ) |
| Total net change in fair value of derivative instruments included in earnings relating to liabilities outstanding for the period |   | $                                                                       | (2,315  | ) |

| 4. | Earthquake Loss |
|----|-----------------|

| 5. | Derivative Instrument |
|----|-----------------------|

| 6. | Income Taxes |
|----|--------------|

----

| 7. | Company Share Repurchases |
|----|---------------------------|

| 8. | Earnings per Common Share |
|----|---------------------------|

|                                                                                                        |   | NetIncome |    |   | WeightedAverage SharesOutstanding |   |    | Earningsper Share |   |
|-------------------------------------------------------------------------------------------------------------|--------|-----------|---------|--------|-----------------------------------|--------|---------|-------------------|--------|
| Three Months Ended March 31, 2010:                                                                     |   |      |    |   |                              |   |    |              |   |
| Basic earnings per share:                                                                                   |   |      |    |   |                              |   |    |              |   |
| Net income                                                                                                  |   | $         | 15,421  |   |                              |   | 45,431  |              |   | $ | 0.34 |   |
| Effect of dilutive securities – Common share options, restricted common shares and common share units |   |      | – |   |                              |   | 3,063   |              |   |   |   |   |
| Adjusted net income for diluted earnings per common share                                                   |   | $         | 15,421  |   |                              |   | 48,494  |              |   | $ | 0.32 |   |
|                                                                                                        |   |      |    |   |                              |   |    |              |   |   |   |   |
| Three Months Ended March 31, 2009:                                                                     |   |      |    |   |                              |   |    |              |   |   |   |   |
| Basic earnings per share:                                                                                   |   |      |    |   |                              |   |    |              |   |   |   |   |
| Net income attributable to common shareholders                                                              |   | $         | 83,621  |   |                              |   | 49,521  |              |   | $ | 1.69 |   |
| Effect of dilutive securities:                                                                              |   |      |    |   |                              |   |    |              |   |   |   |   |
| Common share options, restricted common shares and common share units                                       |   |      | – |   |                              |   | 1,114   |              |   |   |   |   |
| Conversion of preferred shares                                                                              |   |      | – |   |                              |   | 3,067   |              |   |   |   |   |
| Preferred share dividends                                                                                   |   |      | 1,301   |   |                              |   | – |              |   |   |   |   |
| Adjusted net income for diluted earnings per common share                                                   |   | $         | 84,922  |   |                              |   | 53,702  |              |   | $ | 1.58 |   |

| 9. | Operating Segment Information |
|----|-------------------------------|

----

|                                         |   | Propertyand Marine |    |    | Casualty |   |    | Finite Risk |   |   | Total        |   |
|----------------------------------------------|--------|--------------------|---------|---------|----------|--------|---------|-------------|--------|--------|--------------|--------|
|                                         |   |               |    |    |     |   |    |        |   |   |         |   |
| Three Months Ended March 31, 2010:      |   |               |    |    |     |   |    |        |   |   |         |   |
| Net premiums written                         |   | $                  | 146,785 |    |     |   | 93,751  |        |   |   | 6,891        |   |   | $ | 247,427 |   |
|                                         |   |               |    |    |     |   |    |        |   |   |         |   |   |   |   |   |
| Net premiums earned                          |   |               | 127,806 |    |     |   | 87,902  |        |   |   | 4,470        |   |   |   | 220,178 |   |
| Net losses and loss adjustment expenses      |   |               | 126,627 |    |     |   | 31,530  |        |   |   | 6,411        |   |   |   | 164,568 |   |
| Net acquisition expenses                     |   |               | 16,231  |    |     |   | 17,727  |        |   |   | 3,371        |   |   |   | 37,329 |   |
| Other underwriting expenses                  |   |               | 8,699   |    |     |   | 6,470   |        |   |   | 338          |   |   |   | 15,507 |   |
| Segment net underwriting income (loss)       |   | $                  | (23,751 | )       |     |   | 32,175  |        |   |   |  (5,650 | )      |   |   | 2,774 |   |
|                                         |   |               |    |    |     |   |    |        |   |   |         |   |   |   |   |   |
| Net investment income                        |   |               |    | 37,505  |     |
| Net realized gains on investments            |   |               |    | 5,457   |     |
| Net impairment losses on investments         |   |               |    | (18,102 | )        |
| Net changes in fair value of derivatives     |   |               |    | (2,315  | )        |
| Net foreign currency exchange gains          |   |               |    | 1,229   |     |
| Other income                                 |   |               |    | 273     |     |
| Corporate expenses not allocated to segments |   |               |    | (6,234  | )        |
| Interest expense                             |   |               |    | (4,760  | )        |
| Income before income tax expense             |   |               | $       | 15,827  |     |
|                                         |   |               |    |    |     |   |    |        |   |   |         |   |   |   |   |   |
| Ratios:                                      |   |               |    |    |     |   |    |        |   |   |         |   |   |   |   |   |
| Net loss and loss adjustment expenses        |   |               | 99.1    | %       |     |   | 35.9    | %           |   |   | 143.4        | %      |   |   | 74.7 | % |
| Net acquisition expense                      |   |               | 12.7    | %       |     |   | 20.2    | %           |   |   | 75.4         | %      |   |   | 17.0 | % |
| Other underwriting expense                   |   |               | 6.8     | %       |     |   | 7.4     | %           |   |   | 7.6          | %      |   |   | 7.0 | % |
| Combined                                     |   |               | 118.6   | %       |     |   | 63.5    | %           |   |   | 226.4        | %      |   |   | 98.7 | % |
|                                         |   |               |    |    |     |   |    |        |   |   |         |   |   |   |   |   |
| Three Months Ended March 31, 2009:           |   |               |    |    |     |   |    |        |   |   |         |   |   |   |   |   |
| Net premiums written                         |   | $                  | 141,735 |    |     |   | 98,014  |        |   |   | 5,523        |   |   | $ | 245,272 |   |
|                                         |   |               |    |    |     |   |    |        |   |   |         |   |   |   |   |   |
| Net premiums earned                          |   |               | 133,671 |    |     |   | 109,960 |        |   |   | 4,121        |   |   |   | 247,752 |   |
| Net losses and loss adjustment expenses      |   |               | 77,451  |    |     |   | 59,141  |        |   |   | 7,572        |   |   |   | 144,164 |   |
| Net acquisition expenses                     |   |               | 17,364  |    |     |   | 26,221  |        |   |   | (3,429       | )      |   |   | 40,156 |   |
| Other underwriting expenses                  |   |               | 8,159   |    |     |   | 5,669   |        |   |   | 300          |   |   |   | 14,128 |   |
| Segment net underwriting income (loss)       |   | $                  | 30,697  |    |     |   | 18,929  |        |   |   | (322         | )      |   |   | 49,304 |   |
|                                         |   |               |    |    |     |   |    |        |   |   |         |   |   |   |   |   |
| Net investment income                        |   |               |    | 34,246  |     |
| Net realized gains on investments            |   |               |    | 20,570  |     |
| Net impairment losses on investments         |   |               |    | (3,408  | )        |
| Net changes in fair value of derivatives     |   |               |    | (2,417  | )        |
| Net foreign currency exchange losses         |   |               |    | (996    | )        |
| Other income                                 |   |               |    | 232     |     |
| Corporate expenses not allocated to segments |   |               |    | (6,740  | )        |
| Interest expense                             |   |               |    | (4,755  | )        |
| Income before income tax expense             |   |               | $       | 86,036  |     |
|                                         |   |               |    |    |     |   |    |        |   |   |         |   |   |   |   |   |
| Ratios:                                      |   |               |    |    |     |   |    |        |   |   |         |   |   |   |   |   |
| Net loss and loss adjustment expenses        |   |               | 57.9    | %       |     |   | 53.8    | %           |   |   | 183.7        | %      |   |   | 58.2 | % |
| Net acquisition expense                      |   |               | 13.0    | %       |     |   | 23.8    | %           |   |   | (83.2        | %)     |   |   | 16.2 | % |
| Other underwriting expense                   |   |               | 6.1     | %       |     |   | 5.2     | %           |   |   | 7.3          | %      |   |   | 5.7 | % |
| Combined                                     |   |               | 77.0    | %       |     |   | 82.8    | %           |   |   | 107.8        | %      |   |   | 80.1 | % |

| 10. | Condensed Consolidating Financial Information |
|-----|-----------------------------------------------|

----

| Condensed Consolidating Balance SheetMarch 31, 2010 |   | PlatinumHoldings |      |   | PlatinumFinance |   |    | Non-guarantor Subsidiaries |   |   | ConsolidatingAdjustments |   |   | Consolidated |       |
|----------------------------------------------------------|--------|------------------|-----------|--------|-----------------|--------|---------|----------------------------|--------|--------|--------------------------|--------|--------|--------------|------------|
|                                                     |   |             |      |   |            |   |    |                       |   |   |                     |   |   |         |       |
| ASSETS                                                   |   |             |      |   |            |   |    |                       |   |   |                     |   |   |         |       |
| Total investments                                        |   | $                | –   |   |            |   | 26,434  |                       |   |   | 3,956,352                |   |   |         | –    |   |   | $ | 3,982,786 |   |
| Investment in subsidiaries                               |   |             | 1,967,469 |   |            |   | 576,181 |                       |   |   | 367,371                  |   |   |         | (2,911,021 | ) |   |   | – |   |
| Cash and cash equivalents                                |   |             | 105,284   |   |            |   | 8,831   |                       |   |   | 418,927                  |   |   |         | –    |   |   |   | 533,042 |   |
| Reinsurance assets                                       |   |             | –   |   |            |   | – |                       |   |   | 477,825                  |   |   |         | –    |   |   |   | 477,825 |   |
| Other assets                                             |   |             | 13,436    |   |            |   | 7,600   |                       |   |   | 83,183                   |   |   |         | (3,842     | ) |   |   | 100,377 |   |
| Total assets                                             |   | $                | 2,086,189 |   |            |   | 619,046 |                       |   |   | 5,303,658                |   |   |         | (2,914,863 | ) |   | $ | 5,094,030 |   |
|                                                     |   |             |      |   |            |   |    |                       |   |   |                     |   |   |         |       |   |   |   |   |   |
| LIABILITIES AND SHAREHOLDERS’ EQUITY               |   |             |      |   |            |   |    |                       |   |   |                     |   |   |         |       |   |   |   |   |   |
| Liabilities                                              |   |             |      |   |            |   |    |                       |   |   |                     |   |   |         |       |   |   |   |   |   |
| Reinsurance liabilities                                  |   | $                | –   |   |            |   | – |                       |   |   | 2,684,965                |   |   |         | –    |   |   | $ | 2,684,965 |   |
| Debt obligations                                         |   |             | –   |   |            |   | 250,000 |                       |   |   | –                  |   |   |         | –    |   |   |   | 250,000 |   |
| Other liabilities                                        |   |             | 2,545     |   |            |   | 7,382   |                       |   |   | 69,336                   |   |   |         | (3,842     | ) |   |   | 75,421 |   |
| Total liabilities                                        |   |             | 2,545     |   |            |   | 257,382 |                       |   |   | 2,754,301                |   |   |         | (3,842     | ) |   |   | 3,010,386 |   |
|                                                     |   |             |      |   |            |   |    |                       |   |   |                     |   |   |         |       |   |   |   |   |   |
| Shareholders’ Equity                               |   |             |      |   |            |   |    |                       |   |   |                     |   |   |         |       |   |   |   |   |   |
| Common shares                                            |   |             | 447       |   |            |   | – |                       |   |   | 8,000                    |   |   |         | (8,000     | ) |   |   | 447 |   |
| Additional paid-in capital                               |   |             | 829,712   |   |            |   | 212,690 |                       |   |   | 1,881,570                |   |   |         | (2,094,260 | ) |   |   | 829,712 |   |
| Accumulated other comprehensive loss                     |   |             | (22,133   | )      |            |   | 7,151   |                       |   |   | (15,050                  | )      |   |         | 7,899      |   |   |   | (22,133 | ) |
| Retained earnings                                        |   |             | 1,275,618 |   |            |   | 141,823 |                       |   |   | 674,837                  |   |   |         | (816,660   | ) |   |   | 1,275,618 |   |
| Total shareholders’ equity                         |   |             | 2,083,644 |   |            |   | 361,664 |                       |   |   | 2,549,357                |   |   |         | (2,911,021 | ) |   |   | 2,083,644 |   |
|                                                     |   |             |      |   |            |   |    |                       |   |   |                     |   |   |         |       |   |   |   |   |   |
| Total liabilities and shareholders’ equity         |   | $                | 2,086,189 |   |            |   | 619,046 |                       |   |   | 5,303,658                |   |   |         | (2,914,863 | ) |   | $ | 5,094,030 |   |

| Condensed Consolidating Balance SheetDecember 31, 2009 |   | PlatinumHoldings |      |   | PlatinumFinance |   |    | Non-guarantor Subsidiaries |   |   | ConsolidatingAdjustments |   |   | Consolidated |       |
|-------------------------------------------------------------|--------|------------------|-----------|--------|-----------------|--------|---------|----------------------------|--------|--------|--------------------------|--------|--------|--------------|------------|
|                                                        |   |             |      |   |            |   |    |                       |   |   |                     |   |   |         |       |
| ASSETS                                                      |   |             |      |   |            |   |    |                       |   |   |                     |   |   |         |       |
| Total investments                                           |   | $                | –   |   |            |   | 26,426  |                       |   |   | 3,660,439                |   |   |         | –    |   |   | $ | 3,686,865 |   |
| Investment in subsidiaries                                  |   |             | 2,023,276 |   |            |   | 546,946 |                       |   |   | 341,627                  |   |   |         | (2,911,849 | ) |   |   | – |   |
| Cash and cash equivalents                                   |   |             | 49,448    |   |            |   | 7,655   |                       |   |   | 625,681                  |   |   |         | –    |   |   |   | 682,784 |   |
| Reinsurance assets                                          |   |             | –   |   |            |   | – |                       |   |   | 424,527                  |   |   |         | –    |   |   |   | 424,527 |   |
| Other assets                                                |   |             | 13,649    |   |            |   | 6,265   |                       |   |   | 210,963                  |   |   |         | (3,475     | ) |   |   | 227,402 |   |
| Total assets                                                |   | $                | 2,086,373 |   |            |   | 587,292 |                       |   |   | 5,263,237                |   |   |         | (2,915,324 | ) |   | $ | 5,021,578 |   |
|                                                        |   |             |      |   |            |   |    |                       |   |   |                     |   |   |         |       |   |   |   |   |   |
| LIABILITIES AND SHAREHOLDERS’ EQUITY                  |   |             |      |   |            |   |    |                       |   |   |                     |   |   |         |       |   |   |   |   |   |
| Liabilities                                                 |   |             |      |   |            |   |    |                       |   |   |                     |   |   |         |       |   |   |   |   |   |
| Reinsurance liabilities                                     |   | $                | –   |   |            |   | – |                       |   |   | 2,620,406                |   |   |         | –    |   |   | $ | 2,620,406 |   |
| Debt obligations                                            |   |             | –   |   |            |   | 250,000 |                       |   |   | –                  |   |   |         | –    |   |   |   | 250,000 |   |
| Other liabilities                                           |   |             | 8,642     |   |            |   | 1,641   |                       |   |   | 66,633                   |   |   |         | (3,475     | ) |   |   | 73,441 |   |
| Total liabilities                                           |   |             | 8,642     |   |            |   | 251,641 |                       |   |   | 2,687,039                |   |   |         | (3,475     | ) |   |   | 2,943,847 |   |
|                                                        |   |             |      |   |            |   |    |                       |   |   |                     |   |   |         |       |   |   |   |   |   |
| Shareholders’ Equity                                  |   |             |      |   |            |   |    |                       |   |   |                     |   |   |         |       |   |   |   |   |   |
| Common shares                                               |   |             | 459       |   |            |   | – |                       |   |   | 6,250                    |   |   |         | (6,250     | ) |   |   | 459 |   |
| Additional paid-in capital                                  |   |             | 883,425   |   |            |   | 212,608 |                       |   |   | 1,883,156                |   |   |         | (2,095,764 | ) |   |   | 883,425 |   |
| Accumulated other comprehensive loss                        |   |             | (70,005   | )      |            |   | (7,439  | )                          |   |   | (77,490                  | )      |   |         | 84,929     |   |   |   | (70,005 | ) |
| Retained earnings                                           |   |             | 1,263,852 |   |            |   | 130,482 |                       |   |   | 764,282                  |   |   |         | (894,764   | ) |   |   | 1,263,852 |   |
| Total shareholders’ equity                            |   |             | 2,077,731 |   |            |   | 335,651 |                       |   |   | 2,576,198                |   |   |         | (2,911,849 | ) |   |   | 2,077,731 |   |
|                                                        |   |             |      |   |            |   |    |                       |   |   |                     |   |   |         |       |   |   |   |   |   |
| Total liabilities and shareholders’ equity            |   | $                | 2,086,373 |   |            |   | 587,292 |                       |   |   | 5,263,237                |   |   |         | (2,915,324 | ) |   | $ | 5,021,578 |   |

----

| Condensed Consolidating Statement of OperationsFor the Three Months Ended March 31, 2010 |   | Platinum Holdings |    |   | Platinum Finance |   |    | Non-guarantor Subsidiaries |   |   | ConsolidatingAdjustments |   |   | Consolidated |    |
|-----------------------------------------------------------------------------------------------|--------|-------------------|---------|--------|------------------|--------|---------|----------------------------|--------|--------|--------------------------|--------|--------|--------------|---------|
|                                                                                          |   |              |    |   |             |   |    |                       |   |   |                     |   |   |         |    |
| Revenue:                                                                                      |   |              |    |   |             |   |    |                       |   |   |                     |   |   |         |    |
| Net premiums earned                                                                           |   | $                 | – |   |             |   | – |                       |   |   | 220,178                  |   |   |         | – |   |   | $ | 220,178 |   |
| Net investment income                                                                         |   |              | 10      |   |             |   | 46      |                       |   |   | 37,449                   |   |   |         | – |   |   |   | 37,505 |   |
| Net realized gains on investments                                                             |   |              | – |   |             |   | – |                       |   |   | 5,457                    |   |   |         | – |   |   |   | 5,457 |   |
| Net impairment losses on investments                                                          |   |              | – |   |             |   | – |                       |   |   | (18,102                  | )      |   |         | – |   |   |   | (18,102 | ) |
| Other income (expense)                                                                        |   |              | 444     |   |             |   | – |                       |   |   | (171                     | )      |   |         | – |   |   |   | 273 |   |
| Total revenue                                                                                 |   |              | 454     |   |             |   | 46      |                       |   |   | 244,811                  |   |   |         | – |   |   |   | 245,311 |   |
|                                                                                          |   |              |    |   |             |   |    |                       |   |   |                     |   |   |         |    |   |   |   |   |   |
| Expenses:                                                                                     |   |              |    |   |             |   |    |                       |   |   |                     |   |   |         |    |   |   |   |   |   |
| Net losses and loss adjustment expenses                                                       |   |              | – |   |             |   | – |                       |   |   | 164,568                  |   |   |         | – |   |   |   | 164,568 |   |
| Net acquisition expenses                                                                      |   |              | – |   |             |   | – |                       |   |   | 37,329                   |   |   |         | – |   |   |   | 37,329 |   |
| Net changes in fair value of derivatives                                                      |   |              | – |   |             |   | – |                       |   |   | 2,315                    |   |   |         | – |   |   |   | 2,315 |   |
| Operating expenses                                                                            |   |              | 6,273   |   |             |   | 69      |                       |   |   | 15,399                   |   |   |         | – |   |   |   | 21,741 |   |
| Net foreign currency exchange gains                                                           |   |              | – |   |             |   | – |                       |   |   | (1,233                   | )      |   |         | 4       |   |   |   | (1,229 | ) |
| Interest expense                                                                              |   |              | – |   |             |   | 4,760   |                       |   |   | –                  |   |   |         | – |   |   |   | 4,760 |   |
| Total expenses                                                                                |   |              | 6,273   |   |             |   | 4,829   |                       |   |   | 218,378                  |   |   |         | 4       |   |   |   | 229,484 |   |
|                                                                                          |   |              |    |   |             |   |    |                       |   |   |                     |   |   |         |    |   |   |   |   |   |
| Income (loss) before income tax expense (benefit)                                             |   |              | (5,819  | )      |             |   | (4,783  | )                          |   |   | 26,433                   |   |   |         | (4      | ) |   |   | 15,827 |   |
| Income tax expense (benefit)                                                                  |   |              | – |   |             |   | (1,540  | )                          |   |   | 1,946                    |   |   |         | – |   |   |   | 406 |   |
|                                                                                          |   |              |    |   |             |   |    |                       |   |   |                     |   |   |         |    |   |   |   |   |   |
| Income (loss) before equity in earnings of subsidiaries                                       |   |              | (5,819  | )      |             |   | (3,243  | )                          |   |   | 24,487                   |   |   |         | (4      | ) |   |   | 15,421 |   |
| Equity in earnings of subsidiaries                                                            |   |              | 21,240  |   |             |   | 14,584  |                       |   |   | 11,072                   |   |   |         | (46,896 | ) |   |   | – |   |
|                                                                                          |   |              |    |   |             |   |    |                       |   |   |                     |   |   |         |    |   |   |   |   |   |
| Net income                                                                                    |   | $                 | 15,421  |   |             |   | 11,341  |                       |   |   | 35,559                   |   |   |         | (46,900 | ) |   | $ | 15,421 |   |

| Condensed Consolidating Statement of OperationsFor the Three Months Ended March 31, 2009 |   | Platinum Holdings |    |   | Platinum Finance |   |    | Non-guarantor Subsidiaries |   |   | Consolidating Adjustments |   |   | Consolidated |    |
|-----------------------------------------------------------------------------------------------|--------|-------------------|---------|--------|------------------|--------|---------|----------------------------|--------|--------|---------------------------|--------|--------|--------------|---------|
|                                                                                          |   |              |    |   |             |   |    |                       |   |   |                      |   |   |         |    |
| Revenue:                                                                                      |   |              |    |   |             |   |    |                       |   |   |                      |   |   |         |    |
| Net premiums earned                                                                           |   | $                 | – |   |             |   | – |                       |   |   | 247,752                   |   |   |         | – |   |   | $ | 247,752 |   |
| Net investment income                                                                         |   |              | 30      |   |             |   | 20      |                       |   |   | 34,196                    |   |   |         | – |   |   |   | 34,246 |   |
| Net realized gains on investments                                                             |   |              | – |   |             |   | – |                       |   |   | 20,570                    |   |   |         | – |   |   |   | 20,570 |   |
| Net impairment losses on investments                                                          |   |              | – |   |             |   | – |                       |   |   | (3,408                    | )      |   |         | – |   |   |   | (3,408 | ) |
| Other income (expense)                                                                        |   |              | 454     |   |             |   | – |                       |   |   | (222                      | )      |   |         | – |   |   |   | 232 |   |
| Total revenue                                                                                 |   |              | 484     |   |             |   | 20      |                       |   |   | 298,888                   |   |   |         | – |   |   |   | 299,392 |   |
|                                                                                          |   |              |    |   |             |   |    |                       |   |   |                      |   |   |         |    |   |   |   |   |   |
| Expenses:                                                                                     |   |              |    |   |             |   |    |                       |   |   |                      |   |   |         |    |   |   |   |   |   |
| Net losses and loss adjustment expenses                                                       |   |              | – |   |             |   | – |                       |   |   | 144,164                   |   |   |         | – |   |   |   | 144,164 |   |
| Net acquisition expenses                                                                      |   |              | – |   |             |   | – |                       |   |   | 40,156                    |   |   |         | – |   |   |   | 40,156 |   |
| Net changes in fair value of derivatives                                                      |   |              | – |   |             |   | – |                       |   |   | 2,417                     |   |   |         | – |   |   |   | 2,417 |   |
| Operating expenses                                                                            |   |              | 6,543   |   |             |   | 108     |                       |   |   | 14,217                    |   |   |         | – |   |   |   | 20,868 |   |
| Net foreign currency exchange losses                                                          |   |              | – |   |             |   | – |                       |   |   | 996                       |   |   |         | – |   |   |   | 996 |   |
| Interest expense                                                                              |   |              | – |   |             |   | 4,755   |                       |   |   | –                   |   |   |         | – |   |   |   | 4,755 |   |
| Total expenses                                                                                |   |              | 6,543   |   |             |   | 4,863   |                       |   |   | 201,950                   |   |   |         | – |   |   |   | 213,356 |   |
|                                                                                          |   |              |    |   |             |   |    |                       |   |   |                      |   |   |         |    |   |   |   |   |   |
| Income (loss) before income tax expense (benefit)                                             |   |              | (6,059  | )      |             |   | (4,843  | )                          |   |   | 96,938                    |   |   |         | – |   |   |   | 86,036 |   |
| Income tax expense (benefit)                                                                  |   |              | 150     |   |             |   | (1,695  | )                          |   |   | 2,659                     |   |   |         | – |   |   |   | 1,114 |   |
|                                                                                          |   |              |    |   |             |   |    |                       |   |   |                      |   |   |         |    |   |   |   |   |   |
| Income (loss) before equity in earnings of subsidiaries                                       |   |              | (6,209  | )      |             |   | (3,148  | )                          |   |   | 94,279                    |   |   |         | – |   |   |   | 84,922 |   |
| Equity in earnings of subsidiaries                                                            |   |              | 91,131  |   |             |   | 3,751   |                       |   |   | 371                       |   |   |         | (95,253 | ) |   |   | – |   |
|                                                                                          |   |              |    |   |             |   |    |                       |   |   |                      |   |   |         |    |   |   |   |   |   |
| Net income                                                                                    |   |              | 84,922  |   |             |   | 603     |                       |   |   | 94,650                    |   |   |         | (95,253 | ) |   |   | 84,922 |   |
| Preferred dividends                                                                           |   |              | 1,301   |   |             |   | – |                       |   |   | –                   |   |   |         | – |   |   |   | 1,301 |   |
|                                                                                          |   |              |    |   |             |   |    |                       |   |   |                      |   |   |         |    |   |   |   |   |   |
| Net income attributable to common shareholders                                                |   | $                 | 83,621  |   |             |   | 603     |                       |   |   | 94,650                    |   |   |         | (95,253 | ) |   | $ | 83,621 |   |

----

| Condensed Consolidating Statement of Cash Flows                    |   | Platinum |    |   | Platinum |   |    | Non-guarantor |   |   | Consolidating |   |   |         |     |
|--------------------------------------------------------------------|--------|----------|---------|--------|----------|--------|---------|---------------|--------|--------|---------------|--------|--------|--------------|----------|
| For the Three Months Ended March 31, 2010                     |   | Holdings |    |   | Finance  |   |    | Subsidiaries  |   |   | Adjustments   |   |   | Consolidated |     |
|                                                               |   |     |    |   |     |   |    |          |   |   |          |   |   |         |     |
| Net cash provided by (used in) operating activities                |   | $        | (9,101  | )      |     |   | 1,135   |          |   |   | 42,390        |   |   |         | –  |   |   | $ | 34,424 |   |
|                                                               |   |     |    |   |     |   |    |          |   |   |          |   |   |         |     |   |   |   |   |   |
| Investing Activities:                                              |   |     |    |   |     |   |    |          |   |   |          |   |   |         |     |   |   |   |   |   |
|                                                               |   |     |    |   |     |   |    |          |   |   |          |   |   |         |     |   |   |   |   |   |
| Proceeds from sale of available-for-sale securities                |   |     | – |   |     |   | – |          |   |   | 280,339       |   |   |         | –  |   |   |   | 280,339 |   |
| Proceeds from maturity or paydown of available-for-sale securities |   |     | – |   |     |   | 41      |          |   |   | 87,411        |   |   |         | –  |   |   |   | 87,452 |   |
| Acquisition of available-for-sale securities                       |   |     | – |   |     |   | – |          |   |   | (286,490      | )      |   |         | –  |   |   |   | (286,490 | ) |
| Net change in short-term investments                               |   |     | – |   |     |   | – |          |   |   | (202,361      | )      |   |         | –  |   |   |   | (202,361 | ) |
| Dividends from subsidiaries                                        |   |     | 125,000 |   |     |   | – |          |   |   | –       |   |   |         | (125,000 | ) |   |   | – |   |
| Net cash provided by (used in) investing activities                |   |     | 125,000 |   |     |   | 41      |          |   |   | (121,101      | )      |   |         | (125,000 | ) |   |   | (121,060 | ) |
|                                                               |   |     |    |   |     |   |    |          |   |   |          |   |   |         |     |   |   |   |   |   |
| Financing Activities:                                              |   |     |    |   |     |   |    |          |   |   |          |   |   |         |     |   |   |   |   |   |
| Dividends paid to common shareholders                              |   |     | (3,655  | )      |     |   | – |          |   |   | (125,000      | )      |   |         | 125,000  |   |   |   | (3,655 | ) |
| Purchase of common shares                                          |   |     | (63,221 | )      |     |   | – |          |   |   | –       |   |   |         | –  |   |   |   | (63,221 | ) |
| Proceeds from exercise of common share options                     |   |     | 6,813   |   |     |   | – |          |   |   | –       |   |   |         | –  |   |   |   | 6,813 |   |
| Net cash used in financing activities                              |   |     | (60,063 | )      |     |   | – |          |   |   | (125,000      | )      |   |         | 125,000  |   |   |   | (60,063 | ) |
|                                                               |   |     |    |   |     |   |    |          |   |   |          |   |   |         |     |   |   |   |   |   |
| Effect of foreign currency exchange rate changes on cash           |   |     | – |   |     |   | – |          |   |   | (3,043        | )      |   |         | –  |   |   |   | (3,043 | ) |
|                                                               |   |     |    |   |     |   |    |          |   |   |          |   |   |         |     |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents               |   |     | 55,836  |   |     |   | 1,176   |          |   |   | (206,754      | )      |   |         | –  |   |   |   | (149,742 | ) |
| Cash and cash equivalents at beginning of period                   |   |     | 49,449  |   |     |   | 7,655   |          |   |   | 625,680       |   |   |         | –  |   |   |   | 682,784 |   |
|                                                               |   |     |    |   |     |   |    |          |   |   |          |   |   |         |     |   |   |   |   |   |
| Cash and cash equivalents at end of period                         |   | $        | 105,285 |   |     |   | 8,831   |          |   |   | 418,926       |   |   |         | –  |   |   | $ | 533,042 |   |

| Condensed Consolidating Statement of Cash Flows                    |   | Platinum |    |   | Platinum |   |    | Non-guarantor |   |   | Consolidating |   |   |         |    |
|--------------------------------------------------------------------|--------|----------|---------|--------|----------|--------|---------|---------------|--------|--------|---------------|--------|--------|--------------|---------|
| For the Three Months Ended March 31, 2009                     |   | Holdings |    |   | Finance  |   |    | Subsidiaries  |   |   | Adjustments   |   |   | Consolidated |    |
|                                                               |   |     |    |   |     |   |    |          |   |   |          |   |   |         |    |
| Net cash provided by (used in) operating activities                |   | $        | (2,964  | )      |     |   | 32      |          |   |   | 272,526       |   |   |         | – |   |   | $ | 269,594 |   |
|                                                               |   |     |    |   |     |   |    |          |   |   |          |   |   |         |    |   |   |   |   |   |
| Investing Activities:                                              |   |     |    |   |     |   |    |          |   |   |          |   |   |         |    |   |   |   |   |   |
| Proceeds from sale of available-for-sale securities                |   |     | – |   |     |   | – |          |   |   | 128,941       |   |   |         | – |   |   |   | 128,941 |   |
| Proceeds from maturity or paydown of available-for-sale securities |   |     | – |   |     |   | 619     |          |   |   | 186,297       |   |   |         | – |   |   |   | 186,916 |   |
| Acquisition of available-for-sale securities                       |   |     | – |   |     |   | – |          |   |   | (1,044,698    | )      |   |         | – |   |   |   | (1,044,698 | ) |
| Acquisition of trading securities                                  |   |     | – |   |     |   | – |          |   |   | (14,525       | )      |   |         | – |   |   |   | (14,525 | ) |
| Net change in short-term investments                               |   |     | – |   |     |   | – |          |   |   | 38,585        |   |   |         | – |   |   |   | 38,585 |   |
| Dividends from subsidiaries                                        |   |     | 40,000  |   |     |   | – |          |   |   | –       |   |   |         | (40,000 | ) |   |   | – |   |
| Net cash provided by (used in) investing activities                |   |     | 40,000  |   |     |   | 619     |          |   |   | (705,400      | )      |   |         | (40,000 | ) |   |   | (704,781 | ) |
|                                                               |   |     |    |   |     |   |    |          |   |   |          |   |   |         |    |   |   |   |   |   |
| Financing Activities:                                              |   |     |    |   |     |   |    |          |   |   |          |   |   |         |    |   |   |   |   |   |
| Dividends paid to preferred shareholders                           |   |     | (2,602  | )      |     |   | – |          |   |   | –       |   |   |         | – |   |   |   | (2,602 | ) |
| Dividends paid to common shareholders                              |   |     | (4,262  | )      |     |   | – |          |   |   | (40,000       | )      |   |         | 40,000  |   |   |   | (4,262 | ) |
| Purchase of common shares                                          |   |     | (60,091 | )      |     |   | – |          |   |   | –       |   |   |         | – |   |   |   | (60,091 | ) |
| Net cash used in financing activities                              |   |     | (66,955 | )      |     |   | – |          |   |   | (40,000       | )      |   |         | 40,000  |   |   |   | (66,955 | ) |
|                                                               |   |     |    |   |     |   |    |          |   |   |          |   |   |         |    |   |   |   |   |   |
| Effect of foreign currency exchange rate changes on cash           |   |     | – |   |     |   | – |          |   |   | (1,793        | )      |   |         | – |   |   |   | (1,793 | ) |
|                                                               |   |     |    |   |     |   |    |          |   |   |          |   |   |         |    |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents               |   |     | (29,919 | )      |     |   | 651     |          |   |   | (474,667      | )      |   |         | – |   |   |   | (503,935 | ) |
| Cash and cash equivalents at beginning of period                   |   |     | 66,325  |   |     |   | 10,468  |          |   |   | 736,224       |   |   |         | – |   |   |   | 813,017 |   |
|                                                               |   |     |    |   |     |   |    |          |   |   |          |   |   |         |    |   |   |   |   |   |
| Cash and cash equivalents at end of period                         |   | $        | 36,406  |   |     |   | 11,119  |          |   |   | 261,557       |   |   |         | – |   |   | $ | 309,082 |   |

----

| ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
|---------|---------------------------------------------------------------------------------------------|

|                                                                           |   | 2010   |   |   | 2009   |   |   | Decrease |   |
|--------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|----------|--------|
|                                                                           |   |   |   |   |   |   |   |     |   |
| Net income                                                                     |   | $      | 15,421 |   |   |   | 84,922 |     |   | $ | 69,501 |   |
| Average shares outstanding used to calculate diluted earnings per common share |   |   | 48,494 |   |   |   | 53,702 |     |   |   | 5,208 |   |
| Diluted earnings per common share                                              |   | $      | 0.32   |   |   |   | 1.58   |     |   | $ | 1.26 |   |

----

|                                                   |   |   |    |   |   |   |    |               |   |
|--------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------------------|--------|
|                                                   |   | 2010   |    |   | 2009   |   |    | Increase(decrease) |   |
|                                                   |   |   |    |   |   |   |    |               |   |
| Gross premiums written                                 |   | $      | 152,545 |   |   |   | 145,435 |               |   | $ | 7,110 |   |
| Ceded premiums written                                 |   |   | 5,760   |   |   |   | 3,700   |               |   |   | 2,060 |   |
| Net premiums written                                   |   |   | 146,785 |   |   |   | 141,735 |               |   |   | 5,050 |   |
|                                                   |   |   |    |   |   |   |    |               |   |   |   |   |
| Net premiums earned                                    |   |   | 127,806 |   |   |   | 133,671 |               |   |   | (5,865 | ) |
| Net losses and LAE                                     |   |   | 126,627 |   |   |   | 77,451  |               |   |   | 49,176 |   |
| Net acquisition expenses                               |   |   | 16,231  |   |   |   | 17,364  |               |   |   | (1,133 | ) |
| Other underwriting expenses                            |   |   | 8,699   |   |   |   | 8,159   |               |   |   | 540 |   |
| Property and Marine segment underwriting income (loss) |   | $      | (23,751 | )      |   |   | 30,697  |               |   | $ | (54,448 | ) |
|                                                   |   |   |    |   |   |   |    |               |   |   |   |   |
| Ratios:                                                |   |   |    |   |   |   |    |               |   |   |   |   |
| Net loss and LAE                                       |   |   | 99.1    | %      |   |   | 57.9    | %                  |   | 41.2 points |   |
| Net acquisition expense                                |   |   | 12.7    | %      |   |   | 13.0    | %                  |   | (0.3) points |   |
| Other underwriting expense                             |   |   | 6.8     | %      |   |   | 6.1     | %                  |   | 0.7 points |   |
| Combined                                               |   |   | 118.6   | %      |   |   | 77.0    | %                  |   | 41.6 points |   |

----

|                                          |   |               |   |   |                    |   |    |         |   |   |            |   |
|-----------------------------------------------|--------|--------------------|--------|--------|-------------------------|--------|---------|--------------|--------|--------|-----------------|--------|
| Class of Business                             |   | Net Losses and LAE |   |   | Net Acquisition Expense |   |    | Net Premiums |   |   | Net Development |   |
|                                          |   |               |   |   |                    |   |    |         |   |   |            |   |
| Property excess-of-loss per risk              |   | $                  | 9,355  |   |                    |   | (505    | )            |   |   | 72              |   |   | $ | 8,922 |   |
| Catastrophe excess-of-loss (non-major events) |   |               | 2,365  |   |                    |   | (107    | )            |   |   | 140             |   |   |   | 2,398 |   |
| Crop                                          |   |               | 3,917  |   |                    |   | – |         |   |   | –         |   |   |   | 3,917 |   |
| Property proportional                         |   |               | 2,287  |   |                    |   | (7      | )            |   |   | –         |   |   |   | 2,280 |   |
| Other property                                |   |               | 721    |   |                    |   | (236    | )            |   |   | 639             |   |   |   | 1,124 |   |
| Total                                         |   | $                  | 18,645 |   |                    |   | (855    | )            |   |   | 851             |   |   | $ | 18,641 |   |

|                                          |   |               |   |   |                    |   |    |         |   |   |            |   |
|-----------------------------------------------|--------|--------------------|--------|--------|-------------------------|--------|---------|--------------|--------|--------|-----------------|--------|
| Class of Business                             |   | Net Losses and LAE |   |   | Net Acquisition Expense |   |    | Net Premiums |   |   | Net Development |   |
|                                          |   |               |   |   |                    |   |    |         |   |   |            |   |
| Property excess-of-loss per risk              |   | $                  | 2,700  |   |                    |   | (226    | )            |   |   | 3               |   |   | $ | 2,477 |   |
| Catastrophe excess-of-loss (non-major events) |   |               | 6,570  |   |                    |   | 819     |         |   |   | 159             |   |   |   | 7,548 |   |
| Major catastrophes                            |   |               | (2,416 | )      |                    |   | – |         |   |   | 359             |   |   |   | (2,057 | ) |
| Crop                                          |   |               | (5,722 | )      |                    |   | (95     | )            |   |   | –         |   |   |   | (5,817 | ) |
| Marine, aviation and satellite                |   |               | (3,437 | )      |                    |   | (77     | )            |   |   | 487             |   |   |   | (3,027 | ) |
| Property proportional                         |   |               | 821    |   |                    |   | (30     | )            |   |   | –         |   |   |   | 791 |   |
| Total                                         |   | $                  | (1,484 | )      |                    |   | 391     |         |   |   | 1,008           |   |   | $ | (85 | ) |

----

|                                 |   |   |   |   |   |   |    |                |   |
|--------------------------------------|--------|--------|--------|--------|--------|--------|---------|---------------------|--------|
|                                 |   | 2010   |   |   | 2009   |   |    | Increase (decrease) |   |
|                                 |   |   |   |   |   |   |    |                |   |
| Net premiums written                 |   | $      | 93,751 |   |   |   | 98,014  |                |   | $ | (4,263 | ) |
|                                 |   |   |   |   |   |   |    |                |   |   |   |   |
| Net premiums earned                  |   |   | 87,902 |   |   |   | 109,960 |                |   |   | (22,058 | ) |
| Net losses and LAE                   |   |   | 31,530 |   |   |   | 59,141  |                |   |   | (27,611 | ) |
| Net acquisition expenses             |   |   | 17,727 |   |   |   | 26,221  |                |   |   | (8,494 | ) |
| Other underwriting expenses          |   |   | 6,470  |   |   |   | 5,669   |                |   |   | 801 |   |
| Casualty segment underwriting income |   | $      | 32,175 |   |   |   | 18,929  |                |   | $ | 13,246 |   |
|                                 |   |   |   |   |   |   |    |                |   |   |   |   |
| Ratios:                              |   |   |   |   |   |   |    |                |   |   |   |   |
| Net loss and LAE                     |   |   | 35.9   | %      |   |   | 53.8    | %                   |   | (17.9) points |   |
| Net acquisition expense              |   |   | 20.2   | %      |   |   | 23.8    | %                   |   | (3.6) points |   |
| Other underwriting expense           |   |   | 7.4    | %      |   |   | 5.2     | %                   |   | 2.2 points |   |
| Combined                             |   |   | 63.5   | %      |   |   | 82.8    | %                   |   | (19.3) points |   |

|                       |   |               |   |   |                    |   |   |         |   |   |            |   |
|----------------------------|--------|--------------------|--------|--------|-------------------------|--------|--------|--------------|--------|--------|-----------------|--------|
| Class of Business          |   | Net Losses and LAE |   |   | Net Acquisition Expense |   |   | Net Premiums |   |   | Net Development |   |
|                       |   |               |   |   |                    |   |   |         |   |   |            |   |
| North American claims made |   | $                  | 11,032 |   |                    |   | 2,267  |         |   |   | –         |   |   | $ | 13,299 |   |
| North American occurrence  |   |               | 17,341 |   |                    |   | (125   | )            |   |   | 7               |   |   |   | 17,223 |   |
| North American umbrella    |   |               | 3,449  |   |                    |   | 1      |         |   |   | –         |   |   |   | 3,450 |   |
| Financial lines            |   |               | 1,820  |   |                    |   | 82     |         |   |   | (40             | )      |   |   | 1,862 |   |
| International casualty     |   |               | (1,303 | )      |                    |   | (172   | )            |   |   | 250             |   |   |   | (1,225 | ) |
| Accident and health        |   |               | 943    |   |                    |   | 878    |         |   |   | –         |   |   |   | 1,821 |   |
| Other                      |   |               | 60     |   |                    |   | (13    | )            |   |   | 77              |   |   |   | 124 |   |
| Total                      |   | $                  | 33,342 |   |                    |   | 2,918  |         |   |   | 294             |   |   | $ | 36,554 |   |

----

|                                     |   |               |   |   |                    |   |   |         |   |   |            |   |
|------------------------------------------|--------|--------------------|--------|--------|-------------------------|--------|--------|--------------|--------|--------|-----------------|--------|
| Class of Business                        |   | Net Losses and LAE |   |   | Net Acquisition Expense |   |   | Net Premiums |   |   | Net Development |   |
|                                     |   |               |   |   |                    |   |   |         |   |   |            |   |
| North American claims made               |   | $                  | 6,485  |   |                    |   | (100   | )            |   |   | –         |   |   | $ | 6,385 |   |
| North American clash                     |   |               | (1,016 | )      |                    |   | (25    | )            |   |   | (69             | )      |   |   | (1,110 | ) |
| North American excess-of-loss occurrence |   |               | 11,296 |   |                    |   | 99     |         |   |   | 41              |   |   |   | 11,436 |   |
| North American umbrella                  |   |               | 6,601  |   |                    |   | (31    | )            |   |   | –         |   |   |   | 6,570 |   |
| Other                                    |   |               | (228   | )      |                    |   | (232   | )            |   |   | (578            | )      |   |   | (1,038 | ) |
| Total                                    |   | $                  | 23,138 |   |                    |   | (289   | )            |   |   | (606            | )      |   | $ | 22,243 |   |

|                                         |   |   |   |   |   |   |   |                |   |
|----------------------------------------------|--------|--------|--------|--------|--------|--------|--------|---------------------|--------|
|                                         |   | 2010   |   |   | 2009   |   |   | Increase (decrease) |   |
|                                         |   |   |   |   |   |   |   |                |   |
| Net premiums written                         |   | $      | 6,891  |   |   |   | 5,523  |                |   | $ | 1,368 |   |
|                                         |   |   |   |   |   |   |   |                |   |   |   |   |
| Net premiums earned                          |   |   | 4,470  |   |   |   | 4,121  |                |   |   | 349 |   |
| Net losses and LAE                           |   |   | 6,411  |   |   |   | 7,572  |                |   |   |   |   |
| Net acquisition expenses                     |   |   | 3,371  |   |   |   | (3,429 | )                   |   |   |   |   |
| Net losses, LAE and acquisition expenses     |   |   | 9,782  |   |   |   | 4,143  |                |   |   | 5,639 |   |
| Other underwriting expenses                  |   |   | 338    |   |   |   | 300    |                |   |   | 38 |   |
| Finite Risk segment underwriting loss        |   | $      | (5,650 | )      |   |   | (322   | )                   |   | $ | (5,328 | ) |
|                                         |   |   |   |   |   |   |   |                |   |   |   |   |
| Ratios:                                      |   |   |   |   |   |   |   |                |   |   |   |   |
| Net loss and LAE                             |   |   | 143.4  | %      |   |   | 183.7  | %                   |   |   |   |   |
| Net acquisition expense                      |   |   | 75.4   | %      |   |   | (83.2  | %)                  |   |   |   |   |
| Net loss, LAE and acquisition expense ratios |   |   | 218.8  | %      |   |   | 100.5  | %                   |   | 118.3 points |   |
| Other underwriting expense                   |   |   | 7.6    | %      |   |   | 7.3    | %                   |   | 0.3 points |   |
| Combined                                     |   |   | 226.4  | %      |   |   | 107.8  | %                   |   | 118.6 points |   |

----

|                                             |   |   |   |   |   |   |   |       |   |
|--------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|------------|--------|
|                                             |   | 2010   |   |   | 2009   |   |   | Net change |   |
|                                             |   |   |   |   |   |   |   |       |   |
| Net gains (losses) on the sale of investments:   |   |   |   |   |   |   |   |       |   |
| Gross realized gains                             |   | $      | 4,713  |   |   |   | 22,162 |       |   | $ | (17,449 | ) |
| Gross realized losses                            |   |   | (2     | )      |   |   | (393   | )          |   |   | 391 |   |
| Subtotal                                         |   |   | 4,711  |   |   |   | 21,769 |       |   |   | (17,058 | ) |
| Mark-to-market adjustments on trading securities |   |   | 746    |   |   |   | (1,199 | )          |   |   | 1,945 |   |
| Net realized gains on investments                |   | $      | 5,457  |   |   |   | 20,570 |       |   | $ | (15,113 | ) |

----

|                                                          |   | Fair Value |      |   | Net Unrealized Gain (Loss) |   |    | Average Credit Quality |   |
|---------------------------------------------------------------|--------|------------|-----------|--------|----------------------------|--------|---------|------------------------|--------|
|                                                          |   |       |      |   |                       |   |    |                   |   |
| Available-for-sale securities:                                |   |       |      |   |                       |   |    |                   |   |
| U.S. Government                                               |   | $          | 612,846   |   |                       | $      | (1,238  | )                      |   | Aaa |   |
| U.S. Government agencies                                      |   |       | 100,834   |   |                       |   | 834     |                   |   | Aaa |   |
| Corporate bonds:                                              |   |       |      |   |                       |   |    |                   |   |   |   |
| Industrial                                                    |   |       | 260,323   |   |                       |   | 12,638  |                   |   |   | A2 |   |
| Finance                                                       |   |       | 18,887    |   |                       |   | (1,834  | )                      |   | Baa2 |   |
| Utilities                                                     |   |       | 57,278    |   |                       |   | 1,604   |                   |   |   | A3 |   |
| Insurance                                                     |   |       | 53,365    |   |                       |   | 2,938   |                   |   |   | A3 |   |
| Preferreds with maturity date                                 |   |       | 28,890    |   |                       |   | (2,786  | )                      |   | Baa1 |   |
| Hybrid trust preferreds                                       |   |       | 18,435    |   |                       |   | 1,161   |                   |   | Baa1 |   |
| Mortgage-backed and asset-backed securities:                  |   |       |      |   |                       |   |    |                   |   |   |   |   |
| Commercial mortgage-backed securities                         |   |       | 222,487   |   |                       |   | (5,773  | )                      |   | Aa1 |   |
| U.S. Government agency residential mortgage-backed securities |   |       | 537,700   |   |                       |   | 5,746   |                   |   | Aaa |   |
| Non-agency residential mortgage-backed securities             |   |       | 91,850    |   |                       |   | (43,009 | )                      |   | Baa3 |   |
| Alt-A residential mortgage-backed securities                  |   |       | 7,162     |   |                       |   | (8,139  | )                      |   | Ba3 |   |
| Asset-backed securities                                       |   |       | 19,584    |   |                       |   | (341    | )                      |   | Aaa |   |
| Sub-prime asset-backed securities                             |   |       | 9,517     |   |                       |   | (17,209 | )                      |   |   | B1 |   |
| Municipal bonds                                               |   |       | 909,682   |   |                       |   | 17,793  |                   |   | Aa3 |   |
| Non-U.S. governments                                          |   |       | 664,371   |   |                       |   | 16,462  |                   |   | Aaa |   |
| Total fixed maturity available-for-sale securities            |   |       | 3,613,211 |   |                       |   | (21,153 | )                      |   | Aa2 |   |
| Preferred stocks                                              |   |       | 4,771     |   |                       |   | 2,892   |                   |   |   | B3 |   |
| Total available-for-sale securities                           |   |       | 3,617,982 |   |                       |   | (18,261 | )                      |   | Aa1 |   |
|                                                          |   |       |      |   |                       |   |    |                   |   |   |   |   |
| Trading securities:                                           |   |       |      |   |                       |   |    |                   |   |   |   |   |
| Insurance-linked securities                                   |   |       | 26,461    |   |                       |   | n/a     |                   |   | Ba3 |   |
| Non-U.S. dollar denominated securities:                       |   |       |      |   |                       |   |    |                   |   |   |   |   |
| U.S. Government agencies                                      |   |       | 15,507    |   |                       |   | n/a     |                   |   | Aaa |   |
| Corporate bonds                                               |   |       | 72        |   |                       |   | n/a     |                   |   | Baa2 |   |
| Non-U.S. governments                                          |   |       | 94,032    |   |                       |   | n/a     |                   |   | Aa1 |   |
| Total trading securities                                      |   |       | 136,072   |   |                       |   | n/a     |                   |   | Aa3 |   |
|                                                          |   |       |      |   |                       |   |    |                   |   |   |   |   |
| Total                                                         |   | $          | 3,754,054 |   |                       | $      | (18,261 | )                      |   | Aa2 |   |

----

----

|   | • | severe catastrophic events over which we have no control; |
|--------|---------|-----------------------------------------------------------|

|   | • | the effectiveness of our loss limitation methods and pricing models; |
|--------|---------|----------------------------------------------------------------------|

|   | • | the adequacy of our liability for unpaid losses and loss adjustment expenses; |
|--------|---------|-------------------------------------------------------------------------------|

|   | • | our ability to maintain our A.M. Best and Standard and Poor’s ratings; |
|--------|---------|------------------------------------------------------------------------------|

|   | • | our ability to raise capital on acceptable terms if necessary; |
|--------|---------|----------------------------------------------------------------|

|   | • | the cyclicality of the property and casualty reinsurance business; |
|--------|---------|--------------------------------------------------------------------|

|   | • | the highly competitive nature of the property and casualty reinsurance industry; |
|--------|---------|----------------------------------------------------------------------------------|

|   | • | our ability to maintain our business relationships with reinsurance brokers; |
|--------|---------|------------------------------------------------------------------------------|

|   | • | the availability of retrocessional reinsurance on acceptable terms; |
|--------|---------|---------------------------------------------------------------------|

|   | • | market volatility and interest rate and currency exchange rate fluctuation; |
|--------|---------|-----------------------------------------------------------------------------|

|   | • | tax, regulatory or legal restrictions or limitations applicable to us or the property and casualty reinsurance business generally; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------|

|   | • | general political and economic conditions, including the effects of civil unrest, acts of terrorism, war or a prolonged United States or global economic downturn or recession; and |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | changes in our plans, strategies, objectives, expectations or intentions, which may happen at any time at our discretion. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------|

| ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
|---------|------------------------------------------------------------|

----

|                                      |   | Interest Rate Shift in Basis Points |      |
|-------------------------------------------|--------|-------------------------------------|-----------|
|                                      |   |                                | - 100 bp  |   |   |   | - 50 bp |   |   | Current |   |   |   | + 50 bp |   |   |   | + 100 bp |   |
|                                      |   |                                |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total market value                        |   | $                                   | 3,913,324 |   |   |   | 3,833,340 |   |   |   | 3,749,283 |   |   |   | 3,661,576 |   |   | $ | 3,576,033 |   |
|                                      |   |                                |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Percent change in market value            |   |                                | 4.4       | % |   |   | 2.2 | % |   |   | – |   |   |   | (2.3 | %) |   |   | (4.6 | %) |
|                                      |   |                                |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Resulting net appreciation (depreciation) |   | $                                   | 149,794   |   |   |   | 69,810 |   |   |   | (14,247 | ) |   |   | (101,954 | ) |   | $ | (187,497 | ) |

| ITEM 4. | CONTROLS AND PROCEDURES |
|---------|-------------------------|

| ITEM 1A. | RISK FACTORS |
|----------|--------------|

----

| ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
|---------|-------------------------------------------------------------|

| Period                                     |   | Total Number of Shares Purchased |      |   | Average Price Paid per Share (1) |   |   | Total Number of Shares Purchased as Part of a Publicly Announced Program (2) |   |   | Maximum Dollar Value of Shares that May Yet Be Purchased Under the Program |   |
|--------------------------------------------|--------|----------------------------------|-----------|--------|----------------------------------|--------|--------|------------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------|--------|
|                                       |   |                             |      |   |                             |   |   |                                                                         |   |   |                                                                       |   |
| January 1, 2010 – January 31, 2010   |   |                             | 289,500   |   |                             | $      | 38.27  |                                                                         |   |   | 289,500                                                                    |   |   | $ | 88,009,067 |   |
| February 1, 2010 – February 28, 2010 |   |                             | 531,850   |   |                             |   | 37.21  |                                                                         |   |   | 531,850                                                                    |   |   |   | 235,338,926 |   |
| March 1, 2010 – March 31, 2010  |   |                             | 867,116   |   |                             |   | 37.31  |                                                                         |   |   | 867,116                                                                    |   |   |   | 202,986,126 |   |
| Total                                      |   |                             | 1,688,466 |   |                             | $      | 37.44  |                                                                         |   |   | 1,688,466                                                                  |   |   | $ | 202,986,126 |   |

| ITEM 6. | EXHIBITS |
|---------|----------|

| Exhibit Number |   | Description                                                                                                                                                                                                                      |
|----------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|           |   |                                                                                                                                                                                                                             |
| 3.1            |   | Amended and Restated Bye-Laws of the Company.(1)                                                                                                                                                                                 |   |
| 10.1*          |   | Platinum Underwriters Holdings, Ltd. 2010 Share Incentive Plan.(1)                                                                                                                                                               |   |
| 10.2*          |   | Employment Agreement dated April 29, 2010 between the Company and Allan C. Decleir.(2)                                                                                                                                           |   |
| 10.3*          |   | Letter Agreement dated April 29, 2010 between the Company and James A. Krantz and Consulting Agreement dated April 29, 2010 between Platinum Administrative Services, Inc. and James A. Krantz attached as Exhibit A thereto.(2) |   |
| 31.1           |   | Certification of Michael D. Price, Chief Executive Officer of Platinum Holdings, pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act.                                                                     |   |
| 31.2           |   | Certification of James A. Krantz, Chief Financial Officer of Platinum Holdings, pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act.                                                                      |   |
| 32.1           |   | Certification of Michael D. Price, Chief Executive Officer of Platinum Holdings, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002.                             |   |
| 32.2           |   | Certification of James A. Krantz, Chief Financial Officer of Platinum Holdings, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002.                              |   |

----

|                 | Platinum Underwriters Holdings, Ltd. |                                                                |
|----------------------|--------------------------------------|---------------------------------------------------------------------|
|                 |                                 |                                                                |   |
| Date: April 30, 2010 | By:                                  | /s/ Michael D. Price                                           |   |
|                 |                                 | Michael D. Price                                                    |   |
|                 |                                 | President and Chief Executive Officer (Principal Executive Officer) |   |
|                 |                                 |                                                                |   |

|                 |   |                                                                                              |   |
|----------------------|--------|---------------------------------------------------------------------------------------------------|--------|
| Date: April 30, 2010 | By:    | /s/ James A. Krantz                                                                          |   |
|                 |   | James A. Krantz                                                                                   |   |
|                 |   | Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) |   |
|                 |   |                                                                                              |   |