----

----

|  x | QUARTERLY                                                                                                                                                        REPORT                                                                                                                                                        PURSUANT                                                                                                                                                        TO                                                                                                                                                        SECTION                                                                                                                                                        13                                                                                                                                                        OR                                                                                                                                                        15(d)                                                                                                                                                        OF                                                                                                                                                        THE                                                                                                                                                        SECURITIES                                                                                                                                                        EXCHANGE                                                                                                                                                        ACT                                                                                                                                                        OF                                                                                                                                                        1934  |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    | For                                                                                                                                                        the                                                                                                                                                        quarterly                                                                                                                                                        period                                                                                                                                                        endedSeptember 30,                                                                                                                                                        2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|    | OR                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|    | 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 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Page   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| PART                                                                                                                                                          I  –  FINANCIAL                                                                                                                                                          INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| Item                                                                                                                                                          1.                                                                                                                                                          Condensed                                                                                                                                                          Consolidated                                                                                                                                                          Financial                                                                                                                                                          Statements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| Consolidated                                                                                                                                                          Balance                                                                                                                                                          Sheets                                                                                                                                                          as                                                                                                                                                          of                                                                                                                                                          September 30,                                                                                                                                                          2007                                                                                                                                                          (Unaudited)                                                                                                                                                          andDecember 31,                                                                                                                                                          2006                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 1      |
| Consolidated                                                                                                                                                          Statements                                                                                                                                                          of                                                                                                                                                          Operations                                                                                                                                                          and                                                                                                                                                          Comprehensive                                                                                                                                                          Income                                                                                                                                                          for                                                                                                                                                          the                                                                                                                                                          Three                                                                                                                                                          and                                                                                                                                                          Nine                                                                                                                                                          Months                                                                                                                                                          EndedSeptember 30,                                                                                                                                                          2007                                                                                                                                                          and                                                                                                                                                          2006                                                                                                                                                          (Unaudited) | 2      |
| Consolidated                                                                                                                                                          Statements                                                                                                                                                          of                                                                                                                                                          Changes                                                                                                                                                          in                                                                                                                                                          Shareholders’Equity                                                                                                                                                          for                                                                                                                                                          the                                                                                                                                                          Nine                                                                                                                                                          Months                                                                                                                                                          Ended                                                                                                                                                          September 30,                                                                                                                                                          2007                                                                                                                                                          and                                                                                                                                                          2006                                                                                                                                                          (Unaudited)                                                                                                                                                                                                                                                                                                                           | 3      |
| Consolidated                                                                                                                                                          Statements                                                                                                                                                          of                                                                                                                                                          Cash                                                                                                                                                          Flows                                                                                                                                                          for                                                                                                                                                          the                                                                                                                                                          Nine                                                                                                                                                          Months                                                                                                                                                          EndedSeptember 30,                                                                                                                                                          2007                                                                                                                                                          and                                                                                                                                                          2006                                                                                                                                                          (Unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 4      |
| Notes                                                                                                                                                          to                                                                                                                                                          Condensed                                                                                                                                                          Consolidated                                                                                                                                                          Financial                                                                                                                                                          Statements                                                                                                                                                          for                                                                                                                                                          the                                                                                                                                                          Three                                                                                                                                                          and                                                                                                                                                          Nine                                                                                                                                                          Months                                                                                                                                                          Ended                                                                                                                                                          September 30,                                                                                                                                                          2007                                                                                                                                                          and                                                                                                                                                          2006                                                                                                                                                          (Unaudited)          | 5      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| Item                                                                                                                                                          2.                                                                                                                                                          Management's                                                                                                                                                          Discussion                                                                                                                                                          and                                                                                                                                                          Analysis                                                                                                                                                          of                                                                                                                                                          Financial                                                                                                                                                          Condition                                                                                                                                                          and                                                                                                                                                          Results                                                                                                                                                          of                                                                                                                                                          Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 20     |
| Item                                                                                                                                                          3.                                                                                                                                                          Quantitative                                                                                                                                                          and                                                                                                                                                          Qualitative                                                                                                                                                          Disclosures                                                                                                                                                          about                                                                                                                                                          Market                                                                                                                                                          Risk                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 37     |
| Item                                                                                                                                                          4.                                                                                                                                                          Controls                                                                                                                                                          and                                                                                                                                                          Procedures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 38     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| PART                                                                                                                                                          II  –  OTHER                                                                                                                                                          INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| Item                                                                                                                                                          2.                                                                                                                                                          Unregistered                                                                                                                                                          Sales                                                                                                                                                          of                                                                                                                                                          Equity                                                                                                                                                          Securities                                                                                                                                                          and                                                                                                                                                          Use                                                                                                                                                          of                                                                                                                                                          Proceeds                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 40     |
| Item                                                                                                                                                          6.                                                                                                                                                          Exhibits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 40     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| SIGNATURES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 41     |

----

| ITEM                                                                                                                                                  1.                                                                                                                                                  CONDENSED                                                                                                                                                  CONSOLIDATED                                                                                                                                                  FINANCIAL                                                                                                                                                  STATEMENTS |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Consolidated        Balance Sheets

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |  (Unaudited)                                                                                                                                                                |      |   |                                                                                                                                                                            |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   | September 30,                                                                                                                                                          2007 |      |   | December 31,                                                                                                                                                          2006 |   |
| ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |                                                                                                                                                                             |      |   |                                                                                                                                                                            |   |
| Investments:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |                                                                                                                                                                             |      |   |                                                                                                                                                                            |   |
| Fixed                                                                                                                                                          maturity                                                                                                                                                          available-for-sale                                                                                                                                                          securities                                                                                                                                                          at                                                                                                                                                          fair                                                                                                                                                          value(amortized                                                                                                                                                          cost–$3,472,488                                                                                                                                                          and                                                                                                                                                          $3,276,970,                                                                                                                                                          respectively)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   | $                                                                                                                                                                                | 3,425,874 |   |                                                                                                                                                                            | $      | 3,226,354 |   |
| Fixed                                                                                                                                                          maturity                                                                                                                                                          trading                                                                                                                                                          securities                                                                                                                                                          at                                                                                                                                                          fair                                                                                                                                                          value(amortized                                                                                                                                                          cost–$169,437                                                                                                                                                          and                                                                                                                                                          $110,845,                                                                                                                                                          respectively)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |                                                                                                                                                                             | 166,579   |   |                                                                                                                                                                            |   | 108,291 |   |
| Preferred                                                                                                                                                          stocks                                                                                                                                                          (cost–$11,246                                                                                                                                                          and                                                                                                                                                          $11,246,                                                                                                                                                          respectively)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |                                                                                                                                                                             | 9,667     |   |                                                                                                                                                                            |   | 10,772 |   |
| Other                                                                                                                                                          invested                                                                                                                                                          asset                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |                                                                                                                                                                             | –   |   |                                                                                                                                                                            |   | 4,745 |   |
| Short-term                                                                                                                                                          investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |                                                                                                                                                                             | 33,602    |   |                                                                                                                                                                            |   | 27,123 |   |
| Total                                                                                                                                                          investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |                                                                                                                                                                             | 3,635,722 |   |                                                                                                                                                                            |   | 3,377,285 |   |
| Cash                                                                                                                                                          and                                                                                                                                                          cash                                                                                                                                                          equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |                                                                                                                                                                             | 771,530   |   |                                                                                                                                                                            |   | 851,652 |   |
| Accrued                                                                                                                                                          investment                                                                                                                                                          income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |                                                                                                                                                                             | 33,917    |   |                                                                                                                                                                            |   | 32,682 |   |
| Reinsurance                                                                                                                                                          premiums                                                                                                                                                          receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |                                                                                                                                                                             | 299,295   |   |                                                                                                                                                                            |   | 377,183 |   |
| Reinsurance                                                                                                                                                          recoverable                                                                                                                                                          on                                                                                                                                                          ceded                                                                                                                                                          losses                                                                                                                                                          and                                                                                                                                                          loss                                                                                                                                                          adjustment                                                                                                                                                          expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |                                                                                                                                                                             | 34,243    |   |                                                                                                                                                                            |   | 57,956 |   |
| Prepaid                                                                                                                                                          reinsurance                                                                                                                                                          premiums                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |                                                                                                                                                                             | 9,097     |   |                                                                                                                                                                            |   | 9,680 |   |
| Funds                                                                                                                                                          held                                                                                                                                                          by                                                                                                                                                          ceding                                                                                                                                                          companies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |                                                                                                                                                                             | 165,495   |   |                                                                                                                                                                            |   | 238,499 |   |
| Deferred                                                                                                                                                          acquisition                                                                                                                                                          costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |                                                                                                                                                                             | 82,602    |   |                                                                                                                                                                            |   | 82,610 |   |
| Income                                                                                                                                                          tax                                                                                                                                                          recoverable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |                                                                                                                                                                             | 7,991     |   |                                                                                                                                                                            |   | 7,515 |   |
| Deferred                                                                                                                                                          tax                                                                                                                                                          assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |                                                                                                                                                                             | 42,551    |   |                                                                                                                                                                            |   | 38,577 |   |
| Other                                                                                                                                                          assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |                                                                                                                                                                             | 117,737   |   |                                                                                                                                                                            |   | 19,928 |   |
| Total                                                                                                                                                          assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   | $                                                                                                                                                                                | 5,200,180 |   |                                                                                                                                                                            | $      | 5,093,567 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |                                                                                                                                                                             |      |   |                                                                                                                                                                            |   |   |   |
| LIABILITIES                                                                                                                                                          AND                                                                                                                                                          SHAREHOLDERS’EQUITY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |                                                                                                                                                                             |      |   |                                                                                                                                                                            |   |   |   |
| Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |                                                                                                                                                                             |      |   |                                                                                                                                                                            |   |   |   |
| Unpaid                                                                                                                                                          losses                                                                                                                                                          and                                                                                                                                                          loss                                                                                                                                                          adjustment                                                                                                                                                          expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   | $                                                                                                                                                                                | 2,363,274 |   |                                                                                                                                                                            | $      | 2,368,482 |   |
| Unearned                                                                                                                                                          premiums                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |                                                                                                                                                                             | 358,915   |   |                                                                                                                                                                            |   | 349,792 |   |
| Reinsurance                                                                                                                                                          deposit                                                                                                                                                          liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |                                                                                                                                                                             | 5,614     |   |                                                                                                                                                                            |   | 4,009 |   |
| Debt                                                                                                                                                          obligations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |                                                                                                                                                                             | 292,840   |   |                                                                                                                                                                            |   | 292,840 |   |
| Ceded                                                                                                                                                          premiums                                                                                                                                                          payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |                                                                                                                                                                             | 1,528     |   |                                                                                                                                                                            |   | 17,597 |   |
| Commissions                                                                                                                                                          payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |                                                                                                                                                                             | 105,725   |   |                                                                                                                                                                            |   | 140,835 |   |
| Deferred                                                                                                                                                          tax                                                                                                                                                          liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |                                                                                                                                                                             | –   |   |                                                                                                                                                                            |   | 4,234 |   |
| Other                                                                                                                                                          liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |                                                                                                                                                                             | 68,598    |   |                                                                                                                                                                            |   | 57,717 |   |
| Total                                                                                                                                                          liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |                                                                                                                                                                             | 3,196,494 |   |                                                                                                                                                                            |   | 3,235,506 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |                                                                                                                                                                             |      |   |                                                                                                                                                                            |   |   |   |
| Shareholders’                                                                                                                                                          Equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |                                                                                                                                                                             |      |   |                                                                                                                                                                            |   |   |   |
| Preferred                                                                                                                                                          shares,                                                                                                                                                          $.01                                                                                                                                                          par                                                                                                                                                          value,                                                                                                                                                          25,000,000                                                                                                                                                          shares                                                                                                                                                          authorized,                                                                                                                                                          5,750,000                                                                                                                                                          shares                                                                                                                                                          issued                                                                                                                                                          and                                                                                                                                                          outstanding                                                                                                                                                                                                                                                                                                                                                    |   |   |   |                                                                                                                                                                             | 57        |   |                                                                                                                                                                            |   | 57 |   |
| Common                                                                                                                                                          shares,                                                                                                                                                          $.01                                                                                                                                                          par                                                                                                                                                          value,                                                                                                                                                          200,000,000                                                                                                                                                          shares                                                                                                                                                          authorized,                                                                                                                                                          57,210,877 and                                                                                                                                                          59,671,959                                                                                                                                                          shares                                                                                                                                                          issued                                                                                                                                                          and                                                                                                                                                          outstanding,                                                                                                                                                          respectively |   |   |   |                                                                                                                                                                             | 572       |   |                                                                                                                                                                            |   | 597 |   |
| Additional                                                                                                                                                          paid-in                                                                                                                                                          capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |                                                                                                                                                                             | 1,458,721 |   |                                                                                                                                                                            |   | 1,545,979 |   |
| Accumulated                                                                                                                                                          other                                                                                                                                                          comprehensive                                                                                                                                                          loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |                                                                                                                                                                             | (44,111   | )      |                                                                                                                                                                            |   | (44,289 | ) |
| Retained                                                                                                                                                          earnings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |                                                                                                                                                                             | 588,447   |   |                                                                                                                                                                            |   | 355,717 |   |
| Total                                                                                                                                                          shareholders'                                                                                                                                                          equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |                                                                                                                                                                             | 2,003,686 |   |                                                                                                                                                                            |   | 1,858,061 |   |
| Total                                                                                                                                                          liabilities                                                                                                                                                          and                                                                                                                                                          shareholders'                                                                                                                                                          equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   | $                                                                                                                                                                                | 5,200,180 |   |                                                                                                                                                                            | $      | 5,093,567 |   |

----

Consolidated        Statements of Operations and Comprehensive        Income (Unaudited)

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | Three                                                                                                                                                          Months                                                                                                                                                          EndedSeptember 30, |    |   |   | Nine                                                                                                                                                          Months                                                                                                                                                          EndedSeptember 30, |    |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 2007                                                                                                                                                                                                                                                                                                                                                   |    |   | 2006   |                                                                                                                                                                                                                                                                                                                                                  |    |   | 2007 |   |   | 2006 |   |
| Revenue:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                                                                                                                                                                                                                                                                                                                   |    |   |   |                                                                                                                                                                                                                                                                                                                                                  |    |   |   |   |   |   |   |
| Net                                                                                                                                                          premiums                                                                                                                                                          earned                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | $                                                                                                                                                                                                                                                                                                                                                      | 290,310 |   |   |                                                                                                                                                                                                                                                                                                                                                  | 339,609 |   |   |   |   | 871,076 |   |   | $ | 1,020,975 |   |
| Net                                                                                                                                                          investment                                                                                                                                                          income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                                                                                                                                                                                                                   | 54,283  |   |   |                                                                                                                                                                                                                                                                                                                                                  | 48,302  |   |   |   |   | 160,666 |   |   |   | 137,165 |   |
| Net                                                                                                                                                          realized                                                                                                                                                          gains                                                                                                                                                          (losses)                                                                                                                                                          on                                                                                                                                                          investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                                                                                                                                                                                                                   | (864    | )      |   |                                                                                                                                                                                                                                                                                                                                                  | (57     | ) |   |   |   | (2,521 | ) |   |   | 22 |   |
| Other                                                                                                                                                          income                                                                                                                                                          (expense)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                                                                                                                                                                                                                                                                                                                   | (659    | )      |   |                                                                                                                                                                                                                                                                                                                                                  | 1,714   |   |   |   |   | (3,645 | ) |   |   | (1,927 | ) |
| Total                                                                                                                                                          revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                   | 343,070 |   |   |                                                                                                                                                                                                                                                                                                                                                  | 389,568 |   |   |   |   | 1,025,576 |   |   |   | 1,156,235 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                                                                                                                                                                                                                   |    |   |   |                                                                                                                                                                                                                                                                                                                                                  |    |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                                                                                                                                                                                                                                                                   |    |   |   |                                                                                                                                                                                                                                                                                                                                                  |    |   |   |   |   |   |   |   |   |   |   |
| Net                                                                                                                                                          losses                                                                                                                                                          and                                                                                                                                                          loss                                                                                                                                                          adjustment                                                                                                                                                          expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                                                                                                                                                                                                                   | 163,923 |   |   |                                                                                                                                                                                                                                                                                                                                                  | 191,428 |   |   |   |   | 510,267 |   |   |   | 585,666 |   |
| Net                                                                                                                                                          acquisition                                                                                                                                                          expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                   | 51,445  |   |   |                                                                                                                                                                                                                                                                                                                                                  | 74,994  |   |   |   |   | 156,392 |   |   |   | 220,285 |   |
| Operating                                                                                                                                                          expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                                                                                                                                                                                                                                                                                                                   | 28,161  |   |   |                                                                                                                                                                                                                                                                                                                                                  | 25,348  |   |   |   |   | 77,475 |   |   |   | 71,728 |   |
| Net                                                                                                                                                          foreign                                                                                                                                                          currency                                                                                                                                                          exchange                                                                                                                                                          (gains)                                                                                                                                                          losses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                                                                                                                                                                                                                                                                   | (1,429  | )      |   |                                                                                                                                                                                                                                                                                                                                                  | 228     |   |   |   |   | (2,887 | ) |   |   | (461 | ) |
| Interest                                                                                                                                                          expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                                                                                                                                                                                                                                                                   | 5,457   |   |   |                                                                                                                                                                                                                                                                                                                                                  | 5,452   |   |   |   |   | 16,368 |   |   |   | 16,352 |   |
| Total                                                                                                                                                          expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                                                                                                                                                                                                                   | 247,557 |   |   |                                                                                                                                                                                                                                                                                                                                                  | 297,450 |   |   |   |   | 757,615 |   |   |   | 893,570 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                                                                                                                                                                                                                   |    |   |   |                                                                                                                                                                                                                                                                                                                                                  |    |   |   |   |   |   |   |   |   |   |   |
| Income                                                                                                                                                          before                                                                                                                                                          income                                                                                                                                                          tax                                                                                                                                                          expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                                                                                                                                                                                                                   | 95,513  |   |   |                                                                                                                                                                                                                                                                                                                                                  | 92,118  |   |   |   |   | 267,961 |   |   |   | 262,665 |   |
| Income                                                                                                                                                          tax                                                                                                                                                          expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                                                                                                                                                                                                                   | 4,210   |   |   |                                                                                                                                                                                                                                                                                                                                                  | 7,195   |   |   |   |   | 13,175 |   |   |   | 18,958 |   |
| Net                                                                                                                                                          income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                                                                                                                                                                                                                                   | 91,303  |   |   |                                                                                                                                                                                                                                                                                                                                                  | 84,923  |   |   |   |   | 254,786 |   |   |   | 243,707 |   |
| Preferred                                                                                                                                                          dividends                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                                                                                                                                                                                                                                                                                   | 2,602   |   |   |                                                                                                                                                                                                                                                                                                                                                  | 2,602   |   |   |   |   | 7,806 |   |   |   | 7,780 |   |
| Net                                                                                                                                                          income                                                                                                                                                          attributable                                                                                                                                                          to                                                                                                                                                          common                                                                                                                                                          shareholders                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | $                                                                                                                                                                                                                                                                                                                                                      | 88,701  |   |   |                                                                                                                                                                                                                                                                                                                                                  | 82,321  |   |   |   |   | 246,980 |   |   | $ | 235,927 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                                                                                                                                                                                                                   |    |   |   |                                                                                                                                                                                                                                                                                                                                                  |    |   |   |   |   |   |   |   |   |   |   |
| Earnings                                                                                                                                                          per                                                                                                                                                          share:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                                                                                                                                                                                                                                                                                                                   |    |   |   |                                                                                                                                                                                                                                                                                                                                                  |    |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                                                                          earnings                                                                                                                                                          per                                                                                                                                                          share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | $                                                                                                                                                                                                                                                                                                                                                      | 1.50    |   |   |                                                                                                                                                                                                                                                                                                                                                  | 1.38    |   |   |   |   | 4.15 |   |   | $ | 3.98 |   |
| Diluted                                                                                                                                                          earnings                                                                                                                                                          per                                                                                                                                                          share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | $                                                                                                                                                                                                                                                                                                                                                      | 1.37    |   |   |                                                                                                                                                                                                                                                                                                                                                  | 1.28    |   |   |   |   | 3.79 |   |   | $ | 3.68 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                                                                                                                                                                                                                   |    |   |   |                                                                                                                                                                                                                                                                                                                                                  |    |   |   |   |   |   |   |   |   |   |   |
| Comprehensive                                                                                                                                                          income:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                                                                                                                                                                                                                                                   |    |   |   |                                                                                                                                                                                                                                                                                                                                                  |    |   |   |   |   |   |   |   |   |   |   |
| Net                                                                                                                                                          income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | $                                                                                                                                                                                                                                                                                                                                                      | 91,303  |   |   |                                                                                                                                                                                                                                                                                                                                                  | 84,923  |   |   |   |   | 254,786 |   |   | $ | 243,707 |   |
| Other                                                                                                                                                          comprehensive                                                                                                                                                          income                                                                                                                                                          (loss):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                                                                                                                                                                                                                                                                                                                   |    |   |   |                                                                                                                                                                                                                                                                                                                                                  |    |   |   |   |   |   |   |   |   |   |   |
| Net                                                                                                                                                          change                                                                                                                                                          in                                                                                                                                                          unrealized                                                                                                                                                          gains                                                                                                                                                          and                                                                                                                                                          losses                                                                                                                                                          on                                                                                                                                                          available-for-sale                                                                                                                                                          securities,                                                                                                                                                          net                                                                                                                                                          of                                                                                                                                                          deferred                                                                                                                                                          taxes |   |                                                                                                                                                                                                                                                                                                                                                   | 23,718  |   |   |                                                                                                                                                                                                                                                                                                                                                  | 53,893  |   |   |   |   | 853 |   |   |   | (6,002 | ) |
| Cumulative                                                                                                                                                          translation                                                                                                                                                          adjustments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                                                                                                                                                                                                                   | 1       |   |   |                                                                                                                                                                                                                                                                                                                                                  | 48      |   |   |   |   | (675 | ) |   |   | 223 |   |
| Comprehensive                                                                                                                                                          income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $                                                                                                                                                                                                                                                                                                                                                      | 115,022 |   |   |                                                                                                                                                                                                                                                                                                                                                  | 138,864 |   |   |   |   | 254,964 |   |   | $ | 237,928 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                                                                                                                                                                                                                   |    |   |   |                                                                                                                                                                                                                                                                                                                                                  |    |   |   |   |   |   |   |   |   |   |   |
| Shareholder                                                                                                                                                          dividends:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                                                                                                                                                                                                                                                                                                                   |    |   |   |                                                                                                                                                                                                                                                                                                                                                  |    |   |   |   |   |   |   |   |   |   |   |
| Preferred                                                                                                                                                          dividends                                                                                                                                                          declared                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $                                                                                                                                                                                                                                                                                                                                                      | 2,602   |   |   |                                                                                                                                                                                                                                                                                                                                                  | 2,602   |   |   |   |   | 7,806 |   |   | $ | 7,216 |   |
| Preferred                                                                                                                                                          dividends                                                                                                                                                          declared                                                                                                                                                          per                                                                                                                                                          share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                   | 0.45    |   |   |                                                                                                                                                                                                                                                                                                                                                  | 0.45    |   |   |   |   | 1.36 |   |   |   | 1.26 |   |
| Common                                                                                                                                                          dividends                                                                                                                                                          declared                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                                                                                                                                                                                                                                                                                                                   | 4,639   |   |   |                                                                                                                                                                                                                                                                                                                                                  | 4,767   |   |   |   |   | 14,250 |   |   |   | 14,254 |   |
| Common                                                                                                                                                          dividends                                                                                                                                                          declared                                                                                                                                                          per                                                                                                                                                          share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $                                                                                                                                                                                                                                                                                                                                                      | 0.08    |   |   |                                                                                                                                                                                                                                                                                                                                                  | 0.08    |   |   |   |   | 0.24 |   |   | $ | 0.24 |   |

----

Consolidated        Statements of Changes in Shareholders’Equity (Unaudited)

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 2007   |      |   | 2006   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| Preferred                                                                                                                                                          shares:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |      |   |   |   |
| Balances                                                                                                                                                          at                                                                                                                                                          beginning                                                                                                                                                          and                                                                                                                                                          end                                                                                                                                                          of                                                                                                                                                          periods                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | $      | 57        |   |   | $      | 57 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |      |   |   |   |   |   |
| Common                                                                                                                                                          shares:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |      |   |   |   |   |   |
| Balances                                                                                                                                                          at                                                                                                                                                          beginning                                                                                                                                                          of                                                                                                                                                          period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 597       |   |   |   | 590 |   |
| Exercise                                                                                                                                                          of                                                                                                                                                          share                                                                                                                                                          options                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 10        |   |   |   | 5 |   |
| Issuance                                                                                                                                                          of                                                                                                                                                          restricted                                                                                                                                                          shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | –   |   |   |   | 1 |   |
| Purchase                                                                                                                                                          of                                                                                                                                                          common                                                                                                                                                          shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | (35       | )      |   |   | – |   |
| Balances                                                                                                                                                          at                                                                                                                                                          end                                                                                                                                                          of                                                                                                                                                          period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | 572       |   |   |   | 596 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |      |   |   |   |   |   |
| Additional                                                                                                                                                          paid-in-capital:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |      |   |   |   |   |   |
| Balances                                                                                                                                                          at                                                                                                                                                          beginning                                                                                                                                                          of                                                                                                                                                          period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 1,545,979 |   |   |   | 1,527,316 |   |
| Exercise                                                                                                                                                          of                                                                                                                                                          common                                                                                                                                                          share                                                                                                                                                          options                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 22,629    |   |   |   | 12,224 |   |
| Share                                                                                                                                                          based                                                                                                                                                          compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 6,102     |   |   |   | 5,155 |   |
| Purchase                                                                                                                                                          of                                                                                                                                                          common                                                                                                                                                          shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | (116,938  | )      |   |   | – |   |
| Tax                                                                                                                                                          benefit                                                                                                                                                          of                                                                                                                                                          share                                                                                                                                                          options                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | 949       |   |   |   | – |   |
| Transfer                                                                                                                                                          of                                                                                                                                                          unearned                                                                                                                                                          common                                                                                                                                                          share                                                                                                                                                          grant                                                                                                                                                          compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | –   |   |   |   | (2,467 | ) |
| Balances                                                                                                                                                          at                                                                                                                                                          end                                                                                                                                                          of                                                                                                                                                          period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | 1,458,721 |   |   |   | 1,542,228 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |      |   |   |   |   |   |
| Unearned                                                                                                                                                          common                                                                                                                                                          share                                                                                                                                                          grant                                                                                                                                                          compensation:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |      |   |   |   |   |   |
| Balances                                                                                                                                                          at                                                                                                                                                          beginning                                                                                                                                                          of                                                                                                                                                          period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | –   |   |   |   | (2,467 | ) |
| Transfer                                                                                                                                                          of                                                                                                                                                          unearned                                                                                                                                                          common                                                                                                                                                          share                                                                                                                                                          grant                                                                                                                                                          compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | –   |   |   |   | 2,467 |   |
| Balances                                                                                                                                                          at                                                                                                                                                          end                                                                                                                                                          of                                                                                                                                                          period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | –   |   |   |   | – |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |      |   |   |   |   |   |
| Accumulated                                                                                                                                                          other                                                                                                                                                          comprehensive                                                                                                                                                          loss:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |      |   |   |   |   |   |
| Balances                                                                                                                                                          at                                                                                                                                                          beginning                                                                                                                                                          of                                                                                                                                                          period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | (44,289   | )      |   |   | (40,718 | ) |
| Net                                                                                                                                                          change                                                                                                                                                          in                                                                                                                                                          unrealized                                                                                                                                                          gains                                                                                                                                                          and                                                                                                                                                          losses                                                                                                                                                          on                                                                                                                                                          available-for-sale                                                                                                                                                          securities,                                                                                                                                                          net                                                                                                                                                          of                                                                                                                                                          deferred                                                                                                                                                          tax |   |   | 853       |   |   |   | (6,002 | ) |
| Net                                                                                                                                                          change                                                                                                                                                          in                                                                                                                                                          cumulative                                                                                                                                                          translation                                                                                                                                                          adjustments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | (675      | )      |   |   | 223 |   |
| Balances                                                                                                                                                          at                                                                                                                                                          end                                                                                                                                                          of                                                                                                                                                          period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | (44,111   | )      |   |   | (46,497 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |      |   |   |   |   |   |
| Retained                                                                                                                                                          earnings:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |      |   |   |   |   |   |
| Balances                                                                                                                                                          at                                                                                                                                                          beginning                                                                                                                                                          of                                                                                                                                                          period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 355,717   |   |   |   | 55,471 |   |
| Net                                                                                                                                                          income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 254,786   |   |   |   | 243,707 |   |
| Preferred                                                                                                                                                          share                                                                                                                                                          dividends                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | (7,806    | )      |   |   | (7,780 | ) |
| Common                                                                                                                                                          share                                                                                                                                                          dividends                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | (14,250   | )      |   |   | (14,254 | ) |
| Balances                                                                                                                                                          at                                                                                                                                                          end                                                                                                                                                          of                                                                                                                                                          period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | 588,447   |   |   |   | 277,144 |   |
| Total                                                                                                                                                          shareholders’equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $      | 2,003,686 |   |   | $      | 1,773,528 |   |

----

Consolidated        Statements of Cash Flows (Unaudited)

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 2007   |       |   | 2006   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Operating                                                                                                                                                          Activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |       |   |   |   |
| Net                                                                                                                                                          income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $      | 254,786    |   |   | $      | 243,707 |   |
| Adjustments                                                                                                                                                          to                                                                                                                                                          reconcile                                                                                                                                                          net                                                                                                                                                          income                                                                                                                                                          to                                                                                                                                                          cash                                                                                                                                                          provided                                                                                                                                                          by                                                                                                                                                          operations:               |   |   |       |   |   |   |   |   |
| Depreciation                                                                                                                                                          and                                                                                                                                                          amortization                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 9,580      |   |   |   | 12,298 |   |
| Net                                                                                                                                                          realized                                                                                                                                                          (gains)                                                                                                                                                          losses                                                                                                                                                          on                                                                                                                                                          investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 2,521      |   |   |   | (22 | ) |
| Net                                                                                                                                                          foreign                                                                                                                                                          currency                                                                                                                                                          exchange                                                                                                                                                          gains                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | (2,887     | )      |   |   | (461 | ) |
| Share                                                                                                                                                          based                                                                                                                                                          compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | 6,102      |   |   |   | 5,155 |   |
| Deferred                                                                                                                                                          income                                                                                                                                                          tax                                                                                                                                                          expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | (9,960     | )      |   |   | (2,446 | ) |
| Trading                                                                                                                                                          securities                                                                                                                                                          activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | (45,124    | )      |   |   | (15,019 | ) |
| Changes                                                                                                                                                          in                                                                                                                                                          assets                                                                                                                                                          and                                                                                                                                                          liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |       |   |   |   |   |   |
| Increase                                                                                                                                                          in                                                                                                                                                          accrued                                                                                                                                                          investment                                                                                                                                                          income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | (1,235     | )      |   |   | (1,126 | ) |
| Decrease                                                                                                                                                          in                                                                                                                                                          reinsurance                                                                                                                                                          premiums                                                                                                                                                          receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 81,568     |   |   |   | 182,397 |   |
| Decrease                                                                                                                                                          in                                                                                                                                                          funds                                                                                                                                                          held                                                                                                                                                          by                                                                                                                                                          ceding                                                                                                                                                          companies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   | 73,004     |   |   |   | 42,270 |   |
| Decrease                                                                                                                                                          in                                                                                                                                                          deferred                                                                                                                                                          acquisition                                                                                                                                                          costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | 8          |   |   |   | 40,605 |   |
| Increase                                                                                                                                                          in                                                                                                                                                          net                                                                                                                                                          unpaid                                                                                                                                                          losses                                                                                                                                                          and                                                                                                                                                          loss                                                                                                                                                          adjustment                                                                                                                                                          expenses                                                                                                                                                                                 |   |   | 6,627      |   |   |   | 35,723 |   |
| Increase                                                                                                                                                          (decrease)                                                                                                                                                          in                                                                                                                                                          net                                                                                                                                                          unearned                                                                                                                                                          premiums                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | 9,706      |   |   |   | (115,220 | ) |
| Increase                                                                                                                                                          (decrease)                                                                                                                                                          in                                                                                                                                                          reinsurance                                                                                                                                                          deposit                                                                                                                                                          liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 1,605      |   |   |   | (2,045 | ) |
| Increase                                                                                                                                                          (decrease)                                                                                                                                                          in                                                                                                                                                          ceded                                                                                                                                                          premiums                                                                                                                                                          payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | (16,069    | )      |   |   | 10,066 |   |
| Decrease                                                                                                                                                          in                                                                                                                                                          commissions                                                                                                                                                          payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | (35,110    | )      |   |   | (42,982 | ) |
| Net                                                                                                                                                          changes                                                                                                                                                          in                                                                                                                                                          other                                                                                                                                                          assets                                                                                                                                                          and                                                                                                                                                          liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 7,758      |   |   |   | 66,521 |   |
| Other                                                                                                                                                          net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 935        |   |   |   | 577 |   |
| Net                                                                                                                                                          cash                                                                                                                                                          provided                                                                                                                                                          by                                                                                                                                                          operating                                                                                                                                                          activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | 343,815    |   |   |   | 459,998 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |       |   |   |   |   |   |
| Investing                                                                                                                                                          Activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |       |   |   |   |   |   |
| Proceeds                                                                                                                                                          from                                                                                                                                                          sale                                                                                                                                                          of                                                                                                                                                          available-for-sale                                                                                                                                                          fixed                                                                                                                                                          maturity                                                                                                                                                          securities                                                                                                                                                                                                                                                                                                                                  |   |   | 84,816     |   |   |   | 195,899 |   |
| Proceeds                                                                                                                                                          from                                                                                                                                                          maturity                                                                                                                                                          or                                                                                                                                                          paydown                                                                                                                                                          of                                                                                                                                                          available-for-sale                                                                                                                                                          fixed                                                                                                                                                          maturity                                                                                                                                                          securities |   |   | 840,229    |   |   |   | 184,609 |   |
| Acquisition                                                                                                                                                          of                                                                                                                                                          available-for-sale                                                                                                                                                          fixed                                                                                                                                                          maturity                                                                                                                                                          securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | (1,231,479 | )      |   |   | (847,276 | ) |
| Proceeds                                                                                                                                                          from                                                                                                                                                          sale                                                                                                                                                          of                                                                                                                                                          other                                                                                                                                                          invested                                                                                                                                                          asset                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   | 4,745      |   |   |   | – |   |
| Net                                                                                                                                                          change                                                                                                                                                          in                                                                                                                                                          short-term                                                                                                                                                          investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | (5,859     | )      |   |   | (31,412 | ) |
| Net                                                                                                                                                          cash                                                                                                                                                          used                                                                                                                                                          in                                                                                                                                                          investing                                                                                                                                                          activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | (307,548   | )      |   |   | (498,180 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |       |   |   |   |   |   |
| Financing                                                                                                                                                          Activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |       |   |   |   |   |   |
| Dividends                                                                                                                                                          paid                                                                                                                                                          to                                                                                                                                                          preferred                                                                                                                                                          shareholders                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | (7,806     | )      |   |   | (7,216 | ) |
| Dividends                                                                                                                                                          paid                                                                                                                                                          to                                                                                                                                                          common                                                                                                                                                          shareholders                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | (14,250    | )      |   |   | (14,254 | ) |
| Proceeds                                                                                                                                                          from                                                                                                                                                          exercise                                                                                                                                                          of                                                                                                                                                          share                                                                                                                                                          options                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   | 22,640     |   |   |   | 12,229 |   |
| Purchase                                                                                                                                                          of                                                                                                                                                          common                                                                                                                                                          shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   | (116,973   | )      |   |   | – |   |
| Net                                                                                                                                                          cash                                                                                                                                                          used                                                                                                                                                          in                                                                                                                                                          financing                                                                                                                                                          activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | (116,389   | )      |   |   | (9,241 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |       |   |   |   |   |   |
| Net                                                                                                                                                          increase                                                                                                                                                          (decrease)                                                                                                                                                          in                                                                                                                                                          cash                                                                                                                                                          and                                                                                                                                                          cash                                                                                                                                                          equivalents                                                                                                                                                                                                                                                                                                                                                |   |   | (80,122    | )      |   |   | (47,423 | ) |
| Cash                                                                                                                                                          and                                                                                                                                                          cash                                                                                                                                                          equivalents                                                                                                                                                          at                                                                                                                                                          beginning                                                                                                                                                          of                                                                                                                                                          period                                                                                                                                                                                                                                                                                                                                                    |   |   | 851,652    |   |   |   | 820,746 |   |
| Cash                                                                                                                                                          and                                                                                                                                                          cash                                                                                                                                                          equivalents                                                                                                                                                          at                                                                                                                                                          end                                                                                                                                                          of                                                                                                                                                          period                                                                                                                                                                                                                                                                                                                                                          |   | $      | 771,530    |   |   | $      | 773,323 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |       |   |   |   |   |   |
| Supplemental                                                                                                                                                          disclosures                                                                                                                                                          of                                                                                                                                                          cash                                                                                                                                                          flow                                                                                                                                                          information:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |       |   |   |   |   |   |
| Income                                                                                                                                                          taxes                                                                                                                                                          paid                                                                                                                                                          (recovered)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | $      | 21,470     |   |   | $      | (3,342 | ) |
| Interest                                                                                                                                                          paid                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $      | 16,110     |   |   | $      | 16,109 |   |

----

to        the Condensed Consolidated Financial Statements        (Unaudited)

| 1.Basis                                                                                                                      of                                                                                                                      Presentation |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 2007   |   |   | 2006   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Available-for-sale                                                                                                                                                            securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $      | 2,894  |   |   | $      | (5,782 | ) |
| Less                                                                                                                                                            -                                                                                                                                                            deferred                                                                                                                                                            taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | (2,041 | )      |   |   | (220 | ) |
| Net                                                                                                                                                            change                                                                                                                                                            in                                                                                                                                                            unrealized                                                                                                                                                            investment                                                                                                                                                            gains                                                                                                                                                            and                                                                                                                                                            losses |   | $      | 853    |   |   | $      | (6,002 | ) |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | Fair                                                                                                                                                                Value |      |   | UnrealizedLoss |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------|--------|----------------|--------|
| Less                                                                                                                                                                than                                                                                                                                                                twelve                                                                                                                                                                months:                    |   |                                                                                                                                                                      |      |   |           |   |
| U.S.                                                                                                                                                                Government                                                                                                                                                                                                                                                                                                                                                           |   | $                                                                                                                                                                         | 7,419     |   |           | $      | 148 |   |
| Corporate                                                                                                                                                                bonds                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                                                                                                      | 578,231   |   |           |   | 4,874 |   |
| Mortgage-backed                                                                                                                                                                and                                                                                                                                                                asset-backed                                                                                                                                                                securities |   |                                                                                                                                                                      | 445,858   |   |           |   | 9,215 |   |
| Municipal                                                                                                                                                                bonds                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                                                                                                      | 6,496     |   |           |   | 58 |   |
| Foreign                                                                                                                                                                governments                                                                                                                                                                and                                                                                                                                                                states              |   |                                                                                                                                                                      | 11,784    |   |           |   | 75 |   |
| Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                                                      | 1,049,788 |   |           |   | 14,370 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                      |      |   |           |   |   |   |
| Twelve                                                                                                                                                                months                                                                                                                                                                or                                                                                                                                                                more:                      |   |                                                                                                                                                                      |      |   |           |   |   |   |
| U.S.                                                                                                                                                                Government                                                                                                                                                                                                                                                                                                                                                           |   | $                                                                                                                                                                         | 36,393    |   |           | $      | 964 |   |
| Corporate                                                                                                                                                                bonds                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                                                                                                      | 714,104   |   |           |   | 16,511 |   |
| Mortgage-backed                                                                                                                                                                and                                                                                                                                                                asset-backed                                                                                                                                                                securities |   |                                                                                                                                                                      | 579,562   |   |           |   | 18,344 |   |
| Municipal                                                                                                                                                                bonds                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                                                                                                      | 169,365   |   |           |   | 1,789 |   |
| Foreign                                                                                                                                                                governments                                                                                                                                                                and                                                                                                                                                                states              |   |                                                                                                                                                                      | 22,917    |   |           |   | 257 |   |
| Preferred                                                                                                                                                                stocks                                                                                                                                                                                                                                                                                                                                                          |   |                                                                                                                                                                      | 9,667     |   |           |   | 1,579 |   |
| Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                                                      | 1,532,008 |   |           |   | 39,444 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   | Fair                                                                                                                                                              Value  |   |   |   | Unrealized                                                                                                                                                                Loss  |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Total                                                                                                                                                                of                                                                                                                                                                securities                                                                                                                                                                with                                                                                                                                                                unrealized                                                                                                                                                                losses: |   |   |                                                                                                                                                                          |   |   |   |                                                                                                                                                                                 |   |
| U.S.                                                                                                                                                                Government                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | 43,812                                                                                                                                                                        |   |   |   | 1,112                                                                                                                                                                                |   |
| Corporate                                                                                                                                                                bonds                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | 1,292,335                                                                                                                                                                     |   |   |   | 21,385                                                                                                                                                                               |   |
| Mortgage-backed                                                                                                                                                                and                                                                                                                                                                asset-backed                                                                                                                                                                securities                                                                                                                                                                                                                                                                                                                               |   |   | 1,025,420                                                                                                                                                                     |   |   |   | 27,559                                                                                                                                                                               |   |
| Municipal                                                                                                                                                                bonds                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | 175,861                                                                                                                                                                       |   |   |   | 1,847                                                                                                                                                                                |   |
| Foreign                                                                                                                                                                governments                                                                                                                                                                and                                                                                                                                                                states                                                                                                                                                                                                                                                                                                                                            |   |   | 34,701                                                                                                                                                                        |   |   |   | 332                                                                                                                                                                                  |   |
| Preferred                                                                                                                                                                stocks                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | 9,667                                                                                                                                                                         |   |   |   | 1,579                                                                                                                                                                                |   |
| Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | $      | 2,581,796                                                                                                                                                                     |   |   | $      | 53,814                                                                                                                                                                               |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | NetIncome |    | WeightedAverageCommonSharesOutstanding |   | EarningsPer                                                                            CommonShare |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|---------|----------------------------------------|--------|----------------------------------------------------------------------------------------------------|--------|
| Three                                                                            Months                                                                            Ended                                                                            September 30, 2007:                                                                                                                                                                                                                                                                                                                                                                                                                  |   |      |    |                                   |   |                                                                                               |   |
| Basic                                                                            earnings                                                                            per share:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |      |    |                                   |   |                                                                                               |   |
| Net                                                                            income                                                                            attributable                                                                            to common                                                                            shareholders                                                                                                                                                                                                                                                                                                                                    |   | $         | 88,701  |                                   |   | 58,946                                                                                             |   | $ | 1.50 |   |
| Effect                                                                            of dilutive                                                                            securities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |      |    |                                   |   |                                                                                               |   |   |   |   |
| Common                                                                            share                                                                            options,                                                                            restricted                                                                            common                                                                            shares                                                                            and common                                                                            share                                                                            units |   |      | – |                                   |   | 2,711                                                                                              |   |   |   |   |
| Conversion                                                                            of preferred                                                                            shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |      | – |                                   |   | 5,053                                                                                              |   |   |   |   |
| Preferred                                                                            share                                                                            dividends                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |      | 2,602   |                                   |   | –                                                                                            |   |   |   |   |
| Adjusted                                                                            net income                                                                            for diluted                                                                            earnings                                                                            per share                                                                                                                                                                                                                                                                                                                                |   | $         | 91,303  |                                   |   | 66,710                                                                                             |   | $ | 1.37 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |      |    |                                   |   |                                                                                               |   |   |   |   |
| Three                                                                            Months                                                                            Ended                                                                            September 30, 2006:                                                                                                                                                                                                                                                                                                                                                                                                                  |   |      |    |                                   |   |                                                                                               |   |   |   |   |
| Basic                                                                            earnings                                                                            per share:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |      |    |                                   |   |                                                                                               |   |   |   |   |
| Net                                                                            income                                                                            attributable                                                                            to common                                                                            shareholders                                                                                                                                                                                                                                                                                                                                    |   | $         | 82,321  |                                   |   | 59,537                                                                                             |   | $ | 1.38 |   |
| Effect                                                                            of dilutive                                                                            securities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |      |    |                                   |   |                                                                                               |   |   |   |   |
| Common                                                                            share                                                                            options,                                                                            restricted                                                                            common                                                                            shares                                                                            and common                                                                            share                                                                            units |   |      | – |                                   |   | 1,233                                                                                              |   |   |   |   |
| Conversion                                                                            of preferred                                                                            shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |      | – |                                   |   | 5,750                                                                                              |   |   |   |   |
| Preferred                                                                            share                                                                            dividends                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |      | 2,602   |                                   |   | –                                                                                            |   |   |   |   |
| Adjusted                                                                            net income                                                                            for diluted                                                                            earnings                                                                            per share                                                                                                                                                                                                                                                                                                                                |   | $         | 84,923  |                                   |   | 66,520                                                                                             |   | $ | 1.28 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |      |    |                                   |   |                                                                                               |   |   |   |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | Net                                                                          Income  |   |   | Weighted                                                                          Average                                                                          Common                                                                          Shares                                                                          Outstanding  |   |   | Earnings                                                                          Per Common                                                                          Share  |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Nine                                                                            Months                                                                            Ended                                                                            September 30, 2007:                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |                                                                                      |   |   |                                                                                                                                                                                                                                                                                                                                                 |   |   |                                                                                                                                                                              |   |
| Basic                                                                            earnings                                                                            per share:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |                                                                                      |   |   |                                                                                                                                                                                                                                                                                                                                                 |   |   |                                                                                                                                                                              |   |
| Net                                                                            income                                                                            attributable                                                                            to common                                                                            shareholders                                                                                                                                                                                                                                                                                                                                    |   | $      | 246,980                                                                                   |   |   | 59,572                                                                                                                                                                                                                                                                                                                                               |   | $      | 4.15                                                                                                                                                                              |   |
| Effect                                                                            of dilutive                                                                            securities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |                                                                                      |   |   |                                                                                                                                                                                                                                                                                                                                                 |   |   |                                                                                                                                                                              |   |
| Common                                                                            share                                                                            options,                                                                            restricted                                                                            common                                                                            shares                                                                            and common                                                                            share                                                                            units |   |   | –                                                                                   |   |   | 2,499                                                                                                                                                                                                                                                                                                                                                |   |   |                                                                                                                                                                              |   |
| Conversion                                                                            of preferred                                                                            shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | –                                                                                   |   |   | 5,223                                                                                                                                                                                                                                                                                                                                                |   |   |                                                                                                                                                                              |   |
| Preferred                                                                            share                                                                            dividends                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   | 7,806                                                                                     |   |   | –                                                                                                                                                                                                                                                                                                                                              |   |   |                                                                                                                                                                              |   |
| Adjusted                                                                            net income                                                                            for diluted                                                                            earnings                                                                            per share                                                                                                                                                                                                                                                                                                                                |   | $      | 254,786                                                                                   |   |   | 67,294                                                                                                                                                                                                                                                                                                                                               |   | $      | 3.79                                                                                                                                                                              |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |                                                                                      |   |   |                                                                                                                                                                                                                                                                                                                                                 |   |   |                                                                                                                                                                              |   |
| Nine                                                                            Months                                                                            Ended                                                                            September 30, 2006:                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |                                                                                      |   |   |                                                                                                                                                                                                                                                                                                                                                 |   |   |                                                                                                                                                                              |   |
| Basic                                                                            earnings                                                                            per share:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |                                                                                      |   |   |                                                                                                                                                                                                                                                                                                                                                 |   |   |                                                                                                                                                                              |   |
| Net                                                                            income                                                                            attributable                                                                            to common                                                                            shareholders                                                                                                                                                                                                                                                                                                                                    |   | $      | 235,927                                                                                   |   |   | 59,287                                                                                                                                                                                                                                                                                                                                               |   | $      | 3.98                                                                                                                                                                              |   |
| Effect                                                                            of dilutive                                                                            securities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |                                                                                      |   |   |                                                                                                                                                                                                                                                                                                                                                 |   |   |                                                                                                                                                                              |   |
| Common                                                                            share                                                                            options,                                                                            restricted                                                                            common                                                                            shares                                                                            and common                                                                            share                                                                            units |   |   | –                                                                                   |   |   | 1,236                                                                                                                                                                                                                                                                                                                                                |   |   |                                                                                                                                                                              |   |
| Conversion                                                                            of preferred                                                                            shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | –                                                                                   |   |   | 5,750                                                                                                                                                                                                                                                                                                                                                |   |   |                                                                                                                                                                              |   |
| Preferred                                                                            share                                                                            dividends                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   | 7,780                                                                                     |   |   | –                                                                                                                                                                                                                                                                                                                                              |   |   |                                                                                                                                                                              |   |
| Adjusted                                                                            net income                                                                            for diluted                                                                            earnings                                                                            per share                                                                                                                                                                                                                                                                                                                                |   | $      | 243,707                                                                                   |   |   | 66,273                                                                                                                                                                                                                                                                                                                                               |   | $      | 3.68                                                                                                                                                                              |   |

----

|                                                                                                                                                 |   | Propertyand                                    Marine |    |   | Casualty |   |    | Finite                                    Risk |   |   | Total  |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------|---------|--------|----------|--------|---------|------------------------------------------------|--------|--------|--------|--------|
|                                                                                                                                                 |   |                                                  |    |   |     |   |    |                                           |   |   |   |   |
| Three                                    months ended                                    September 30, 2007:                                    |   |                                                  |    |   |     |   |    |                                           |   |   |   |   |
| Net                                    premiums written                                                                                              |   | $                                                     | 142,549 |   |     |   | 141,214 |                                           |   |   | 8,369  |   |   | $ | 292,132 |   |
|                                                                                                                                                 |   |                                                  |    |   |     |   |    |                                           |   |   |   |   |   |   |   |   |
| Net                                    premiums earned                                                                                               |   |                                                  | 128,380 |   |     |   | 153,938 |                                           |   |   | 7,992  |   |   |   | 290,310 |   |
| Net                                    losses and LAE                                                                                                |   |                                                  | 43,396  |   |     |   | 110,365 |                                           |   |   | 10,162 |   |   |   | 163,923 |   |
| Net                                    acquisition expenses                                                                                          |   |                                                  | 18,549  |   |     |   | 33,403  |                                           |   |   | (507   | )      |   |   | 51,445 |   |
| Other                                    underwriting expenses                                                                                       |   |                                                  | 12,086  |   |     |   | 8,304   |                                           |   |   | 367    |   |   |   | 20,757 |   |
| Segment                                    underwriting income (loss)                                                                                |   | $                                                     | 54,349  |   |     |   | 1,866   |                                           |   |   | (2,030 | )      |   |   | 54,185 |   |
|                                                                                                                                                 |   |                                                  |    |   |     |   |    |                                           |   |   |   |   |   |   |   |   |
| Net                                    investment income                                                                                             |   |                                                  |    | 54,283 |     |
| Net                                    realized losses on investments                                                                                |   |                                                  |    | (864   | )        |
| Net                                    foreign currency exchange gains                                                                               |   |                                                  |    | 1,429  |     |
| Other                                    expense                                                                                                     |   |                                                  |    | (659   | )        |
| Corporate                                    expenses not allocated to segments                                                                      |   |                                                  |    | (7,404 | )        |
| Interest                                    expense                                                                                                  |   |                                                  |    | (5,457 | )        |
| Income                                    before income tax expense                                                                                  |   |                                                  | $       | 95,513 |     |
|                                                                                                                                                 |   |                                                  |    |   |     |   |    |                                           |   |   |   |   |   |   |   |   |
| Ratios:                                                                                                                                              |   |                                                  |    |   |     |   |    |                                           |   |   |   |   |   |   |   |   |
| Net                                    loss and LAE                                                                                                  |   |                                                  | 33.8    | %      |     |   | 71.7    | %                                              |   |   | 127.2  | %      |   |   | 56.5 | % |
| Net                                    acquisition expense                                                                                           |   |                                                  | 14.4    | %      |     |   | 21.7    | %                                              |   |   | (6.3   | %)     |   |   | 17.7 | % |
| Other                                    underwriting expense                                                                                        |   |                                                  | 9.4     | %      |     |   | 5.4     | %                                              |   |   | 4.6    | %      |   |   | 7.1 | % |
| Combined                                                                                                                                             |   |                                                  | 57.6    | %      |     |   | 98.8    | %                                              |   |   | 125.5  | %      |   |   | 81.3 | % |
|                                                                                                                                                 |   |                                                  |    |   |     |   |    |                                           |   |   |   |   |   |   |   |   |
| Three                                    months ended                                    September 30,                                    2006: |   |                                                  |    |   |     |   |    |                                           |   |   |   |   |   |   |   |   |
| Net                                    premiums written                                                                                              |   | $                                                     | 83,018  |   |     |   | 202,302 |                                           |   |   | 12,680 |   |   | $ | 298,000 |   |
|                                                                                                                                                 |   |                                                  |    |   |     |   |    |                                           |   |   |   |   |   |   |   |   |
| Net                                    premiums earned                                                                                               |   |                                                  | 97,686  |   |     |   | 214,427 |                                           |   |   | 27,496 |   |   |   | 339,609 |   |
| Net                                    losses and LAE                                                                                                |   |                                                  | 17,181  |   |     |   | 149,698 |                                           |   |   | 24,549 |   |   |   | 191,428 |   |
| Net                                    acquisition expenses                                                                                          |   |                                                  | 14,895  |   |     |   | 54,503  |                                           |   |   | 5,596  |   |   |   | 74,994 |   |
| Other                                    underwriting expenses                                                                                       |   |                                                  | 8,608   |   |     |   | 9,464   |                                           |   |   | 1,991  |   |   |   | 20,063 |   |
| Segment                                    underwriting income (loss)                                                                                |   | $                                                     | 57,002  |   |     |   | 762     |                                           |   |   | (4,640 | )      |   |   | 53,124 |   |
|                                                                                                                                                 |   |                                                  |    |   |     |   |    |                                           |   |   |   |   |   |   |   |   |
| Net                                    investment income                                                                                             |   |                                                  |    | 48,302 |     |
| Net                                    realized gains on investments                                                                                 |   |                                                  |    | (57    | )        |
| Net                                    foreign currency exchange gains                                                                               |   |                                                  |    | (228   | )        |
| Other                                    expense                                                                                                     |   |                                                  |    | 1,714  |     |
| Corporate                                    expenses not allocated to segments                                                                      |   |                                                  |    | (5,285 | )        |
| Interest                                    expense                                                                                                  |   |                                                  |    | (5,452 | )        |
| Income                                    before income tax expense                                                                                  |   |                                                  | $       | 92,118 |     |

|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
|---------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Ratios:                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                                    loss and LAE           |   |   | 17.6   | %      |   |   | 69.8   | %      |   |   | 89.3   | %      |   |   |   | 56.4 | % |
| Acquisition                                    expense        |   |   | 15.2   | %      |   |   | 25.4   | %      |   |   | 20.4   | %      |   |   |   | 22.1 | % |
| Other                                    underwriting expense |   |   | 8.8    | %      |   |   | 4.4    | %      |   |   | 7.2    | %      |   |   |   | 5.9 | % |
| Combined                                                      |   |   | 41.6   | %      |   |   | 99.6   | %      |   |   | 116.9  | %      |   |   |   | 84.4 | % |

----

|                                                                                                             |   |  Property                                  and Marine |    |    |  Casualty |   |    |  Finite                                  Risk |   |   |  Total |   |
|------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------|---------|---------|----------------|--------|---------|----------------------------------------------------|--------|--------|-------------|--------|
| Nine                                    Months Ended                                    September 30, 2007: |   |                                                       |    |    |           |   |    |                                               |   |   |        |   |
| Net                                    premiums written                                                          |   | $                                                          | 399,429 |    |           |   | 455,945 |                                               |   |   | 23,398      |   |   | $ | 878,772 |   |
|                                                                                                             |   |                                                       |    |    |           |   |    |                                               |   |   |        |   |   |   |   |   |
| Net                                    premiums earned                                                           |   |                                                       | 373,226 |    |           |   | 471,802 |                                               |   |   | 26,048      |   |   |   | 871,076 |   |
| Net                                    losses and LAE                                                            |   |                                                       | 149,265 |    |           |   | 340,740 |                                               |   |   | 20,262      |   |   |   | 510,267 |   |
| Net                                    acquisition expenses                                                      |   |                                                       | 50,748  |    |           |   | 105,499 |                                               |   |   | 145         |   |   |   | 156,392 |   |
| Other                                    underwriting expenses                                                   |   |                                                       | 32,696  |    |           |   | 21,463  |                                               |   |   | 1,994       |   |   |   | 56,153 |   |
| Segment                                    underwriting income                                                   |   | $                                                          | 140,517 |    |           |   | 4,100   |                                               |   |   | 3,647       |   |   |   | 148,264 |   |
|                                                                                                             |   |                                                       |    |    |           |   |    |                                               |   |   |        |   |   |   |   |   |
| Net                                    investment income                                                         |   |                                                       |    | 160,666 |           |
| Net                                    realized losses on investments                                            |   |                                                       |    | (2,521  | )              |
| Net                                    foreign currency exchange gains                                           |   |                                                       |    | 2,887   |           |
| Other                                    expense                                                                 |   |                                                       |    | (3,645  | )              |
| Corporate                                    expenses not allocated to segments                                  |   |                                                       |    | (21,322 | )              |
| Interest                                    expense                                                              |   |                                                       |    | (16,368 | )              |
| Income                                    before income tax expense                                              |   |                                                       | $       | 267,961 |           |
|                                                                                                             |   |                                                       |    |    |           |   |    |                                               |   |   |        |   |   |   |   |   |
| Ratios:                                                                                                          |   |                                                       |    |    |           |   |    |                                               |   |   |        |   |   |   |   |   |
| Net                                    loss and LAE                                                              |   |                                                       | 40.0    | %       |           |   | 72.2    | %                                                  |   |   | 77.8        | %      |   |   | 58.6 | % |
| Net                                    acquisition expense                                                       |   |                                                       | 13.6    | %       |           |   | 22.4    | %                                                  |   |   | 0.6         | %      |   |   | 18.0 | % |
| Other                                    underwriting expense                                                    |   |                                                       | 8.8     | %       |           |   | 4.5     | %                                                  |   |   | 7.7         | %      |   |   | 6.4 | % |
| Combined                                                                                                         |   |                                                       | 62.4    | %       |           |   | 99.1    | %                                                  |   |   | 86.1        | %      |   |   | 83.0 | % |
|                                                                                                             |   |                                                       |    |    |           |   |    |                                               |   |   |        |   |   |   |   |   |
| Nine                                    Months Ended                                    September 30, 2006: |   |                                                       |    |    |           |   |    |                                               |   |   |        |   |   |   |   |   |
| Net                                    premiums written                                                          |   | $                                                          | 333,906 |    |           |   | 583,950 |                                               |   |   | (16,816     | )      |   | $ | 901,040 |   |
|                                                                                                             |   |                                                       |    |    |           |   |    |                                               |   |   |        |   |   |   |   |   |
| Net                                    premiums earned                                                           |   |                                                       | 342,322 |    |           |   | 573,168 |                                               |   |   | 105,485     |   |   |   | 1,020,975 |   |
| Net                                    losses and LAE                                                            |   |                                                       | 104,876 |    |           |   | 394,087 |                                               |   |   | 86,703      |   |   |   | 585,666 |   |
| Net                                    acquisition expenses                                                      |   |                                                       | 55,783  |    |           |   | 141,025 |                                               |   |   | 23,477      |   |   |   | 220,285 |   |
| Other                                    underwriting expenses                                                   |   |                                                       | 27,642  |    |           |   | 23,487  |                                               |   |   | 3,935       |   |   |   | 55,064 |   |
| Segment                                    underwriting income (loss)                                            |   | $                                                          | 154,021 |    |           |   | 14,569  |                                               |   |   | (8,630      | )      |   |   | 159,960 |   |
|                                                                                                             |   |                                                       |    |    |           |   |    |                                               |   |   |        |   |   |   |   |   |
| Net                                    investment income                                                         |   |                                                       |    | 137,165 |           |
| Net                                    realized gains on investments                                             |   |                                                       |    | 22      |           |
| Net                                    foreign currency exchange gains                                           |   |                                                       |    | 461     |           |
| Other                                    expense                                                                 |   |                                                       |    | (1,927  | )              |
| Corporate                                    expenses not allocated to segments                                  |   |                                                       |    | (16,664 | )              |
| Interest                                    expense                                                              |   |                                                       |    | (16,352 | )              |
| Income                                    before income tax expense                                              |   |                                                       | $       | 262,665 |           |
|                                                                                                             |   |                                                       |    |    |           |   |    |                                               |   |   |        |   |   |   |   |   |
| Ratios:                                                                                                          |   |                                                       |    |    |           |   |    |                                               |   |   |        |   |   |   |   |   |
| Net                                    loss and LAE                                                              |   |                                                       | 30.6    | %       |           |   | 68.8    | %                                                  |   |   | 82.2        | %      |   |   | 57.4 | % |
| Net                                    acquisition expense                                                       |   |                                                       | 16.3    | %       |           |   | 24.6    | %                                                  |   |   | 22.3        | %      |   |   | 21.6 | % |
| Other                                    underwriting expense                                                    |   |                                                       | 8.1     | %       |           |   | 4.1     | %                                                  |   |   | 3.7         | %      |   |   | 5.4 | % |
| Combined                                                                                                         |   |                                                       | 55.0    | %       |           |   | 97.5    | %                                                  |   |   | 108.2       | %      |   |   | 84.4 | % |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 2007   |    |   | 2006   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Expected                                                                                                                                                income                                                                                                                                                tax                                                                                                                                                expense                                                                                                                                                at                                                                                                                                                35%                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $      | 93,786  |   |   | $      | 91,933 |   |
| Effect                                                                                                                                                of                                                                                                                                                foreign                                                                                                                                                income                                                                                                                                                subject                                                                                                                                                to                                                                                                                                                tax                                                                                                                                                at                                                                                                                                                rates                                                                                                                                                other                                                                                                                                                than                                                                                                                                                35% |   |   | (82,931 | )      |   |   | (71,726 | ) |
| Tax                                                                                                                                                exempt                                                                                                                                                investment                                                                                                                                                income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | (1,112  | )      |   |   | (1,281 | ) |
| Other,                                                                                                                                                net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 3,432   |   |   |   | 32 |   |
| Income                                                                                                                                                tax                                                                                                                                                expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $      | 13,175  |   |   | $      | 18,958 |   |

| 6.Condensed                                                                                                                                      Consolidating                                                                                                                                      Financial                                                                                                                                      Information |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Condensed                                                                                                                                                Consolidating                                                                                                                                                Balance                                                                                                                                                SheetSeptember 30,                                                                                                                                                2007 |   | Platinum                                                                                                                                                Holdings |      | Platinum                                                                                                                                                Finance |   | Non-guarantor                                                                                                                                                Subsidiaries |   | Consolidating                                                                                                                                                Adjustments |      |   | Consolidated |       |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------|--------|--------------|------------|
| ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                             |      |                                                                                                                                                            |   |                                                                                                                                                                      |   |                                                                                                                                                                     |      |   |         |       |
| Total                                                                                                                                                investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $                                                                                                                                                                | –   |                                                                                                                                                            |   | 9,119                                                                                                                                                                     |   |                                                                                                                                                                     | 3,626,603 |   |         | –    |   |   | $ | 3,635,722 |   |
| Investment                                                                                                                                                in                                                                                                                                                subsidiaries                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                             | 1,859,429 |                                                                                                                                                            |   | 501,753                                                                                                                                                                   |   |                                                                                                                                                                     | 287,157   |   |         | (2,648,339 | ) |   |   | – |   |
| Cash                                                                                                                                                and                                                                                                                                                cash                                                                                                                                                equivalents                                                                                                                                                                                   |   |                                                                                                                                                             | 138,753   |                                                                                                                                                            |   | 42,227                                                                                                                                                                    |   |                                                                                                                                                                     | 590,550   |   |         | –    |   |   |   | 771,530 |   |
| Reinsurance                                                                                                                                                assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                                                                                                                             | –   |                                                                                                                                                            |   | –                                                                                                                                                                   |   |                                                                                                                                                                     | 590,732   |   |         | –    |   |   |   | 590,732 |   |
| Other                                                                                                                                                assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                                                                             | 12,351    |                                                                                                                                                            |   | 7,285                                                                                                                                                                     |   |                                                                                                                                                                     | 182,560   |   |         | –    |   |   |   | 202,196 |   |
| Total                                                                                                                                                assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $                                                                                                                                                                | 2,010,533 |                                                                                                                                                            |   | 560,384                                                                                                                                                                   |   |                                                                                                                                                                     | 5,277,602 |   |         | (2,648,339 | ) |   | $ | 5,200,180 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                             |      |                                                                                                                                                            |   |                                                                                                                                                                      |   |                                                                                                                                                                     |      |   |         |       |   |   |   |   |   |
| LIABILITIES                                                                                                                                                AND                                                                                                                                                SHAREHOLDERS’EQUITY                                                                                                                                                                                                                                                                                                                  |   |                                                                                                                                                             |      |                                                                                                                                                            |   |                                                                                                                                                                      |   |                                                                                                                                                                     |      |   |         |       |   |   |   |   |   |
| Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                                                                             |      |                                                                                                                                                            |   |                                                                                                                                                                      |   |                                                                                                                                                                     |      |   |         |       |   |   |   |   |   |
| Reinsurance                                                                                                                                                liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $                                                                                                                                                                | –   |                                                                                                                                                            |   | –                                                                                                                                                                   |   |                                                                                                                                                                     | 2,835,056 |   |         | –    |   |   | $ | 2,835,056 |   |
| Debt                                                                                                                                                obligations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                                                                                                                             | –   |                                                                                                                                                            |   | 292,840                                                                                                                                                                   |   |                                                                                                                                                                     | –   |   |         | –    |   |   |   | 292,840 |   |
| Other                                                                                                                                                liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                                                             | 6,847     |                                                                                                                                                            |   | 7,403                                                                                                                                                                     |   |                                                                                                                                                                     | 54,348    |   |         | –    |   |   |   | 68,598 |   |
| Total                                                                                                                                                liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                                                             | 6,847     |                                                                                                                                                            |   | 300,243                                                                                                                                                                   |   |                                                                                                                                                                     | 2,889,404 |   |         | –    |   |   |   | 3,196,494 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                             |      |                                                                                                                                                            |   |                                                                                                                                                                      |   |                                                                                                                                                                     |      |   |         |       |   |   |   |   |   |
| Shareholders’                                                                                                                                                Equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                             |      |                                                                                                                                                            |   |                                                                                                                                                                      |   |                                                                                                                                                                     |      |   |         |       |   |   |   |   |   |
| Preferred                                                                                                                                                shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                                                                                                                             | 57        |                                                                                                                                                            |   | –                                                                                                                                                                   |   |                                                                                                                                                                     | –   |   |         | –    |   |   |   | 57 |   |
| Common                                                                                                                                                shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                                                             | 572       |                                                                                                                                                            |   | –                                                                                                                                                                   |   |                                                                                                                                                                     | 6,250     |   |         | (6,250     | ) |   |   | 572 |   |
| Additional                                                                                                                                                paid-in                                                                                                                                                capital                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                             | 1,458,721 |                                                                                                                                                            |   | 193,152                                                                                                                                                                   |   |                                                                                                                                                                     | 1,896,356 |   |         | (2,089,508 | ) |   |   | 1,458,721 |   |
| Accumulated                                                                                                                                                other                                                                                                                                                comprehensive                                                                                                                                                loss                                                                                                                                                                        |   |                                                                                                                                                             | (44,111   | )                                                                                                                                                               |   | (7,325                                                                                                                                                                    | )      |                                                                                                                                                                     | (51,218   | )      |         | 58,543     |   |   |   | (44,111 | ) |
| Retained                                                                                                                                                earnings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                                                             | 588,447   |                                                                                                                                                            |   | 74,314                                                                                                                                                                    |   |                                                                                                                                                                     | 536,810   |   |         | (611,124   | ) |   |   | 588,447 |   |
| Total                                                                                                                                                shareholders'                                                                                                                                                equity                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                             | 2,003,686 |                                                                                                                                                            |   | 260,141                                                                                                                                                                   |   |                                                                                                                                                                     | 2,388,198 |   |         | (2,648,339 | ) |   |   | 2,003,686 |   |
| Total                                                                                                                                                liabilities                                                                                                                                                and                                                                                                                                                shareholders’equity                                                                                                                                                             |   | $                                                                                                                                                                | 2,010,533 |                                                                                                                                                            |   | 560,384                                                                                                                                                                   |   |                                                                                                                                                                     | 5,277,602 |   |         | (2,648,339 | ) |   | $ | 5,200,180 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |             |      |            |   |                      |   |                     |      |   |         |       |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|-----------|-----------------|--------|---------------------------|--------|--------------------------|-----------|--------|--------------|------------|
|  Condensed                                                                                                                                              Consolidating                                                                                                                                              Balance                                                                                                                                              SheetDecember 31,                                                                                                                                              2006 |   | PlatinumHoldings |      | PlatinumFinance |   | Non-guarantorSubsidiaries |   | ConsolidatingAdjustments |      |   | Consolidated |       |
| ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |             |      |            |   |                      |   |                     |      |   |         |       |
| Total                                                                                                                                              investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $                | –   |            |   | 11,342                    |   |                     | 3,365,943 |   |         | –    |   |   | $ | 3,377,285 |   |
| Investment                                                                                                                                              in                                                                                                                                              subsidiaries                                                                                                                                                                                                                                                                                                                                  |   |             | 1,749,762 |            |   | 475,194                   |   |                     | 402,098   |   |         | (2,627,054 | ) |   |   | – |   |
| Cash                                                                                                                                              and                                                                                                                                              cash                                                                                                                                              equivalents                                                                                                                                                                                      |   |             | 106,039   |            |   | 39,294                    |   |                     | 706,319   |   |         | –    |   |   |   | 851,652 |   |
| Reinsurance                                                                                                                                              assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |             | –   |            |   | –                   |   |                     | 765,928   |   |         | –    |   |   |   | 765,928 |   |
| Income                                                                                                                                              tax                                                                                                                                              recoverable                                                                                                                                                                                                                                                                                                                                      |   |             | –   |            |   | (1,418                    | )      |                     | 8,933     |   |         | –    |   |   |   | 7,515 |   |
| Other                                                                                                                                              assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |             | 9,296     |            |   | 3,792                     |   |                     | 78,099    |   |         | –    |   |   |   | 91,187 |   |
| Total                                                                                                                                              assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $                | 1,865,097 |            |   | 528,204                   |   |                     | 5,327,320 |   |         | (2,627,054 | ) |   | $ | 5,093,567 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |             |      |            |   |                      |   |                     |      |   |         |       |   |   |   |   |   |
| LIABILITIES                                                                                                                                              AND                                                                                                                                              SHAREHOLDERS’EQUITY                                                                                                                                                                                                                                                                                                                   |   |             |      |            |   |                      |   |                     |      |   |         |       |   |   |   |   |   |
| Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |             |      |            |   |                      |   |                     |      |   |         |       |   |   |   |   |   |
| Reinsurance                                                                                                                                              liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | $                | –   |            |   | –                   |   |                     | 2,880,715 |   |         | –    |   |   | $ | 2,880,715 |   |
| Debt                                                                                                                                              obligations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |             | –   |            |   | 292,840                   |   |                     | –   |   |         | –    |   |   |   | 292,840 |   |
| Other                                                                                                                                              liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |             | 7,036     |            |   | 2,024                     |   |                     | 52,891    |   |         | –    |   |   |   | 61,951 |   |
| Total                                                                                                                                              liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |             | 7,036     |            |   | 294,864                   |   |                     | 2,933,606 |   |         | –    |   |   |   | 3,235,506 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |             |      |            |   |                      |   |                     |      |   |         |       |   |   |   |   |   |
| Shareholders’                                                                                                                                              Equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |             |      |            |   |                      |   |                     |      |   |         |       |   |   |   |   |   |
| Preferred                                                                                                                                              shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |             | 57        |            |   | –                   |   |                     | –   |   |         | –    |   |   |   | 57 |   |
| Common                                                                                                                                              shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |             | 597       |            |   | –                   |   |                     | 6,250     |   |         | (6,250     | ) |   |   | 597 |   |
| Additional                                                                                                                                              paid-in                                                                                                                                              capital                                                                                                                                                                                                                                                                                                                                  |   |             | 1,545,979 |            |   | 192,203                   |   |                     | 2,051,468 |   |         | (2,243,671 | ) |   |   | 1,545,979 |   |
| Accumulated                                                                                                                                              other                                                                                                                                              comprehensive                                                                                                                                              loss                                                                                                                                                                           |   |             | (44,289   | )               |   | (9,071                    | )      |                     | (55,012   | )      |         | 64,083     |   |   |   | (44,289 | ) |
| Retained                                                                                                                                              earnings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |             | 355,717   |            |   | 50,208                    |   |                     | 391,008   |   |         | (441,216   | ) |   |   | 355,717 |   |
| Total                                                                                                                                              shareholders'                                                                                                                                              equity                                                                                                                                                                                                                                                                                                                                  |   |             | 1,858,061 |            |   | 233,340                   |   |                     | 2,393,714 |   |         | (2,627,054 | ) |   |   | 1,858,061 |   |
| Total                                                                                                                                              liabilities                                                                                                                                              and                                                                                                                                              shareholders’equity                                                                                                                                                                |   | $                | 1,865,097 |            |   | 528,204                   |   |                     | 5,327,320 |   |         | (2,627,054 | ) |   | $ | 5,093,567 |   |

----

| Consolidating                                                                                                                                              Statement                                                                                                                                              of                                                                                                                                              OperationsFor                                                                                                                                              the                                                                                                                                              Three                                                                                                                                              Months                                                                                                                                              EndedSeptember 30,                                                                                                                                              2007 |   | Platinum                                                                                                                                              Holdings |    | Platinum                                                                                                                                              Finance |   | Non-guarantor                                                                                                                                              Subsidiaries |   | Consolidating                                                                                                                                              Adjustments |                                                                                                                                             |   | Consolidated |     |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|----------|
| Revenue:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                                           |    |                                                                                                                                                          |   |                                                                                                                                                                    |   |                                                                                                                                                                   |                                                                                                                                             |   |         |     |
| Net                                                                                                                                              premiums                                                                                                                                              earned                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | $                                                                                                                                                              | – |                                                                                                                                                          |   | –                                                                                                                                                                 |   |                                                                                                                                                                   | 290,310                                                                                                                                          |   |         | –  |   |   | $ | 290,310 |   |
| Net                                                                                                                                              investment                                                                                                                                              income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                           | 2,526   |                                                                                                                                                          |   | 644                                                                                                                                                                     |   |                                                                                                                                                                   | 51,113                                                                                                                                           |   |         | –  |   |   |   | 54,283 |   |
| Net                                                                                                                                              realized                                                                                                                                              losses                                                                                                                                              on                                                                                                                                              investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                                                           | – |                                                                                                                                                          |   | –                                                                                                                                                                 |   |                                                                                                                                                                   | (                                                                                                                                            864 | )      |         | –  |   |   |   | (864 | ) |
| Other                                                                                                                                              income                                                                                                                                              (expense),                                                                                                                                              net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                                                           | 2,623   |                                                                                                                                                          |   | –                                                                                                                                                                 |   |                                                                                                                                                                   | (3,282                                                                                                                                           | )      |         | –  |   |   |   | (659 | ) |
| Total                                                                                                                                              revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                           | 5,149   |                                                                                                                                                          |   | 644                                                                                                                                                                     |   |                                                                                                                                                                   | 337,277                                                                                                                                          |   |         | –  |   |   |   | 343,070 |   |
| Expenses:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                                                                                                                                           |    |                                                                                                                                                          |   |                                                                                                                                                                    |   |                                                                                                                                                                   |                                                                                                                                             |   |         |     |   |   |   |   |   |
| Net                                                                                                                                              losses                                                                                                                                              and                                                                                                                                              loss                                                                                                                                              adjustment                                                                                                                                              expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                                           | – |                                                                                                                                                          |   | –                                                                                                                                                                 |   |                                                                                                                                                                   | 163,923                                                                                                                                          |   |         | –  |   |   |   | 163,923 |   |
| Net                                                                                                                                              acquisition                                                                                                                                              expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                                                           | – |                                                                                                                                                          |   | –                                                                                                                                                                 |   |                                                                                                                                                                   | 51,445                                                                                                                                           |   |         | –  |   |   |   | 51,445 |   |
| Operating                                                                                                                                              expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                           | 7,256   |                                                                                                                                                          |   | 105                                                                                                                                                                     |   |                                                                                                                                                                   | 20,800                                                                                                                                           |   |         | –  |   |   |   | 28,161 |   |
| Net                                                                                                                                              foreign                                                                                                                                              currency                                                                                                                                              exchange                                                                                                                                              gains                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                                                                                                                           | – |                                                                                                                                                          |   | –                                                                                                                                                                 |   |                                                                                                                                                                   | (1,429                                                                                                                                           | )      |         | –  |   |   |   | (1,429 | ) |
| Interest                                                                                                                                              expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                                                                                                                           | – |                                                                                                                                                          |   | 5,457                                                                                                                                                                   |   |                                                                                                                                                                   | –                                                                                                                                          |   |         | –  |   |   |   | 5,457 |   |
| Total                                                                                                                                              expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                                           | 7,256   |                                                                                                                                                          |   | 5,562                                                                                                                                                                   |   |                                                                                                                                                                   | 234,739                                                                                                                                          |   |         | –  |   |   |   | 247,557 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                                                                                           |    |                                                                                                                                                          |   |                                                                                                                                                                    |   |                                                                                                                                                                   |                                                                                                                                             |   |         |     |   |   |   |   |   |
| Income                                                                                                                                              (loss)                                                                                                                                              before                                                                                                                                              income                                                                                                                                              tax                                                                                                                                              expense                                                                                                                                              (benefit)                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                           | (2,107  | )                                                                                                                                                             |   | (4,918                                                                                                                                                                  | )      |                                                                                                                                                                   | 102,538                                                                                                                                          |   |         | –  |   |   |   | 95,513 |   |
| Income                                                                                                                                              tax                                                                                                                                              expense                                                                                                                                              (benefit)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                                                                                                                           | – |                                                                                                                                                          |   | (1,590                                                                                                                                                                  | )      |                                                                                                                                                                   | 5,800                                                                                                                                            |   |         | –  |   |   |   | 4,210 |   |
| Income                                                                                                                                              (loss)                                                                                                                                              before                                                                                                                                              equity                                                                                                                                              in                                                                                                                                              earnings                                                                                                                                              of                                                                                                                                              subsidiaries                                                                                                                                                                             |   |                                                                                                                                                           | (2,107  | )                                                                                                                                                             |   | (3,328                                                                                                                                                                  | )      |                                                                                                                                                                   | 96,738                                                                                                                                           |   |         | –  |   |   |   | 91,303 |   |
| Equity                                                                                                                                              in                                                                                                                                              earnings                                                                                                                                              of                                                                                                                                              subsidiaries                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                                                           | 93,410  |                                                                                                                                                          |   | 11,723                                                                                                                                                                  |   |                                                                                                                                                                   | 12,074                                                                                                                                           |   |         | (117,207 | ) |   |   | – |   |
| Net                                                                                                                                              income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                                                                                                                           | 91,303  |                                                                                                                                                          |   | 8,395                                                                                                                                                                   |   |                                                                                                                                                                   | 108,812                                                                                                                                          |   |         | (117,207 | ) |   |   | 91,303 |   |
| Preferred                                                                                                                                              dividends                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                                                                                                                           | 2,602   |                                                                                                                                                          |   | –                                                                                                                                                                 |   |                                                                                                                                                                   | –                                                                                                                                          |   |         | –  |   |   |   | 2,602 |   |
| Net                                                                                                                                              income                                                                                                                                              attributable                                                                                                                                              to                                                                                                                                              common                                                                                                                                              shareholders                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $                                                                                                                                                              | 88,701  |                                                                                                                                                          |   | 8,395                                                                                                                                                                   |   |                                                                                                                                                                   | 108,812                                                                                                                                          |   |         | (117,207 | ) |   | $ | 88,701 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                                                                                                                           |    |                                                                                                                                                          |   |                                                                                                                                                                    |    |                                                                                                                                                                   |      |    |         |     |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------|---------|--------------|----------|
| Consolidating                                                                                                                                              Statement                                                                                                                                              of                                                                                                                                              OperationsFor                                                                                                                                              the                                                                                                                                              Nine                                                                                                                                              Months                                                                                                                                              EndedSeptember 30,                                                                                                                                              2007 |   | Platinum                                                                                                                                              Holdings |    | Platinum                                                                                                                                              Finance |   | Non-guarantor                                                                                                                                              Subsidiaries |    | Consolidating                                                                                                                                              Adjustments |      |    | Consolidated |     |
| Revenue:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                                                                                                                                           |    |                                                                                                                                                          |   |                                                                                                                                                                    |    |                                                                                                                                                                   |      |    |         |     |
| Net                                                                                                                                              premiums                                                                                                                                              earned                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $                                                                                                                                                              | – |                                                                                                                                                          |   | –                                                                                                                                                                 |    |                                                                                                                                                                   | 871,076   |    |         | –  |   |   | $ | 871,076 |   |
| Net                                                                                                                                              investment                                                                                                                                              income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                                                                                                                           | 5,181   |                                                                                                                                                          |   | 1,883                                                                                                                                                                   |    |                                                                                                                                                                   | 153,602   |    |         | –  |   |   |   | 160,666 |   |
| Net                                                                                                                                              realized                                                                                                                                              losses                                                                                                                                              on                                                                                                                                              investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                                                                                                                           | – |                                                                                                                                                          |   | –                                                                                                                                                                 |    |                                                                                                                                                                   | (2,521    |  ) |         | –  |   |   |   | (2,521 | ) |
| Other                                                                                                                                              income                                                                                                                                              (expense),                                                                                                                                              net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                                                                                                                           | 4,478   |                                                                                                                                                          |   | –                                                                                                                                                                 |    |                                                                                                                                                                   | (8,123    |  ) |         | –  |   |   |   | (3,645 | ) |
| Total                                                                                                                                              revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                                           | 9,659   |                                                                                                                                                          |   | 1,883                                                                                                                                                                   |    |                                                                                                                                                                   | 1,014,034 |    |         | –  |   |   |   | 1,025,576 |   |
| Expenses:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                           |    |                                                                                                                                                          |   |                                                                                                                                                                    |    |                                                                                                                                                                   |      |    |         |     |   |   |   |   |   |
| Net                                                                                                                                              losses                                                                                                                                              and                                                                                                                                              loss                                                                                                                                              adjustment                                                                                                                                              expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                                                                                                                                           | – |                                                                                                                                                          |   | –                                                                                                                                                                 |    |                                                                                                                                                                   | 510,267   |    |         | –  |   |   |   | 510,267 |   |
| Net                                                                                                                                              acquisition                                                                                                                                              expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                                                                                                                           | – |                                                                                                                                                          |   | –                                                                                                                                                                 |    |                                                                                                                                                                   | 156,392   |    |         | –  |   |   |   | 156,392 |   |
| Operating                                                                                                                                              expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                                                                                                                           | 20,915  |                                                                                                                                                          |   | 291                                                                                                                                                                     |    |                                                                                                                                                                   | 56,269    |    |         | –  |   |   |   | 77,475 |   |
| Net                                                                                                                                              foreign                                                                                                                                              currency                                                                                                                                              exchange                                                                                                                                              gains                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                                           | – |                                                                                                                                                          |   | –                                                                                                                                                                 |    |                                                                                                                                                                   | (2,887    |  ) |         | –  |   |   |   | (2,887 | ) |
| Interest                                                                                                                                              expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                           | – |                                                                                                                                                          |   | 16,368                                                                                                                                                                  |    |                                                                                                                                                                   | –   |    |         | –  |   |   |   | 16,368 |   |
| Total                                                                                                                                              expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                           | 20,915  |                                                                                                                                                          |   | 16,659                                                                                                                                                                  |    |                                                                                                                                                                   | 720,041   |    |         | –  |   |   |   | 757,615 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                                                                                                                           |    |                                                                                                                                                          |   |                                                                                                                                                                    |    |                                                                                                                                                                   |      |    |         |     |   |   |   |   |   |
| Income                                                                                                                                              (loss)                                                                                                                                              before                                                                                                                                              income                                                                                                                                              tax                                                                                                                                              expense                                                                                                                                              (benefit)                                                                                                                                                                                                                                                                                                                               |   |                                                                                                                                                           | (11,256 | )                                                                                                                                                             |   | (14,776                                                                                                                                                                 |  ) |                                                                                                                                                                   | 293,993   |    |         | –  |   |   |   | 267,961 |   |
| Income                                                                                                                                              tax                                                                                                                                              expense                                                                                                                                              (benefit)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                                                                                           | – |                                                                                                                                                          |   | (4,996                                                                                                                                                                  |  ) |                                                                                                                                                                   | 18,171    |    |         | –  |   |   |   | 13,175 |   |
| Income                                                                                                                                              (loss)                                                                                                                                              before                                                                                                                                              equity                                                                                                                                              in                                                                                                                                              earnings                                                                                                                                              of                                                                                                                                              subsidiaries                                                                                                                                                                            |   |                                                                                                                                                           | (11,256 | )                                                                                                                                                             |   | (9,780                                                                                                                                                                  |  ) |                                                                                                                                                                   | 275,822   |    |         | –  |   |   |   | 254,786 |   |
| Equity                                                                                                                                              in                                                                                                                                              earnings                                                                                                                                              of                                                                                                                                              subsidiaries                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                                                                                                                           | 266,042 |                                                                                                                                                          |   | 33,887                                                                                                                                                                  |    |                                                                                                                                                                   | 37,480    |    |         | (337,409 | ) |   |   | – |   |
| Net                                                                                                                                              income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                                           | 254,786 |                                                                                                                                                          |   | 24,107                                                                                                                                                                  |    |                                                                                                                                                                   | 313,302   |    |         | (337,409 | ) |   |   | 254,786 |   |
| Preferred                                                                                                                                              dividends                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                                                                           | 7,806   |                                                                                                                                                          |   | –                                                                                                                                                                 |    |                                                                                                                                                                   | –   |    |         | –  |   |   |   | 7,806 |   |
| Net                                                                                                                                              income                                                                                                                                              attributable                                                                                                                                              to                                                                                                                                              common                                                                                                                                              shareholders                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | $                                                                                                                                                              | 246,980 |                                                                                                                                                          |   | 24,107                                                                                                                                                                  |    |                                                                                                                                                                   | 313,302   |    |         | (337,409 | ) |   | $ | 246,980 |   |

----

| Consolidating                                                                                                                                              Statement                                                                                                                                              of                                                                                                                                              OperationsFor                                                                                                                                              the                                                                                                                                              Three                                                                                                                                              Months                                                                                                                                              EndedSeptember 30,                                                                                                                                              2006 |   | Platinum                                                                                                                                              Holdings |    | Platinum                                                                                                                                              Finance |   | Non-guarantor                                                                                                                                              Subsidiaries |   | Consolidating                                                                                                                                              Adjustments |    |    | Consolidated |     |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|---------|--------------|----------|
| Revenue:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                                           |    |                                                                                                                                                          |   |                                                                                                                                                                    |   |                                                                                                                                                                   |    |    |         |     |
| Net                                                                                                                                              premiums                                                                                                                                              earned                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | $                                                                                                                                                              | – |                                                                                                                                                          |   | –                                                                                                                                                                 |   |                                                                                                                                                                   | 339,609 |    |         | –  |   |   | $ | 339,609 |   |
| Net                                                                                                                                              investment                                                                                                                                              income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                           | 1,568   |                                                                                                                                                          |   | 171                                                                                                                                                                     |   |                                                                                                                                                                   | 46,563  |    |         | –  |   |   |   | 48,302 |   |
| Net                                                                                                                                              realized                                                                                                                                              gains                                                                                                                                              on                                                                                                                                              investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                                                                                                                           | – |                                                                                                                                                          |   | –                                                                                                                                                                 |   |                                                                                                                                                                   | (57     |  ) |         | –  |   |   |   | (57 | ) |
| Other                                                                                                                                              expense,                                                                                                                                              net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                           | 2,000   |                                                                                                                                                          |   | –                                                                                                                                                                 |   |                                                                                                                                                                   | (286    |  ) |         | –  |   |   |   | 1,714 |   |
| Total                                                                                                                                              revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                           | 3,568   |                                                                                                                                                          |   | 171                                                                                                                                                                     |   |                                                                                                                                                                   | 385,829 |    |         | –  |   |   |   | 389,568 |   |
| Expenses:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                                                                                                                                           |    |                                                                                                                                                          |   |                                                                                                                                                                    |   |                                                                                                                                                                   |    |    |         |     |   |   |   |   |   |
| Net                                                                                                                                              losses                                                                                                                                              and                                                                                                                                              loss                                                                                                                                              adjustment                                                                                                                                              expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                                           | – |                                                                                                                                                          |   | –                                                                                                                                                                 |   |                                                                                                                                                                   | 191,428 |    |         | –  |   |   |   | 191,428 |   |
| Net                                                                                                                                              acquisition                                                                                                                                              expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                                                           | – |                                                                                                                                                          |   | –                                                                                                                                                                 |   |                                                                                                                                                                   | 74,994  |    |         | –  |   |   |   | 74,994 |   |
| Operating                                                                                                                                              expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                           | 5,167   |                                                                                                                                                          |   | 105                                                                                                                                                                     |   |                                                                                                                                                                   | 20,076  |    |         | –  |   |   |   | 25,348 |   |
| Net                                                                                                                                              foreign                                                                                                                                              currency                                                                                                                                              exchange                                                                                                                                              losses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                                           | – |                                                                                                                                                          |   | –                                                                                                                                                                 |   |                                                                                                                                                                   | 228     |    |         | –  |   |   |   | 228 |   |
| Interest                                                                                                                                              expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                                                                                                                           | – |                                                                                                                                                          |   | 5,452                                                                                                                                                                   |   |                                                                                                                                                                   | – |    |         | –  |   |   |   | 5,452 |   |
| Total                                                                                                                                              expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                                           | 5,167   |                                                                                                                                                          |   | 5,557                                                                                                                                                                   |   |                                                                                                                                                                   | 286,726 |    |         | –  |   |   |   | 297,450 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                                                                                           |    |                                                                                                                                                          |   |                                                                                                                                                                    |   |                                                                                                                                                                   |    |    |         |     |   |   |   |   |   |
| Income                                                                                                                                              (loss)                                                                                                                                              before                                                                                                                                              income                                                                                                                                              tax                                                                                                                                              expense                                                                                                                                              (benefit)                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                           | (1,599  | )                                                                                                                                                             |   | (5,386                                                                                                                                                                  | )      |                                                                                                                                                                   | 99,103  |    |         | –  |   |   |   | 92,118 |   |
| Income                                                                                                                                              tax                                                                                                                                              expense                                                                                                                                              (benefit)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                                                                                                                           | – |                                                                                                                                                          |   | (1,870                                                                                                                                                                  | )      |                                                                                                                                                                   | 9,065   |    |         | –  |   |   |   | 7,195 |   |
| Income                                                                                                                                              (loss)                                                                                                                                              before                                                                                                                                              equity                                                                                                                                              in                                                                                                                                              earnings                                                                                                                                              of                                                                                                                                              subsidiaries                                                                                                                                                                             |   |                                                                                                                                                           | (1,599  | )                                                                                                                                                             |   | (3,516                                                                                                                                                                  | )      |                                                                                                                                                                   | 90,038  |    |         | –  |   |   |   | 84,923 |   |
| Equity                                                                                                                                              in                                                                                                                                              earnings                                                                                                                                              of                                                                                                                                              subsidiaries                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                                                           | 86,522  |                                                                                                                                                          |   | 12,443                                                                                                                                                                  |   |                                                                                                                                                                   | 14,097  |    |         | (113,062 | ) |   |   | – |   |
| Net                                                                                                                                              income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                                                                                                                           | 84,923  |                                                                                                                                                          |   | 8,927                                                                                                                                                                   |   |                                                                                                                                                                   | 104,135 |    |         | (113,062 | ) |   |   | 84,923 |   |
| Preferred                                                                                                                                              dividends                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                                                                                                                           | 2,602   |                                                                                                                                                          |   | –                                                                                                                                                                 |   |                                                                                                                                                                   | – |    |         | –  |   |   |   | 2,602 |   |
| Net                                                                                                                                              income                                                                                                                                              attributable                                                                                                                                              to                                                                                                                                              common                                                                                                                                              shareholders                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $                                                                                                                                                              | 82,321  |                                                                                                                                                          |   | 8,927                                                                                                                                                                   |   |                                                                                                                                                                   | 104,135 |    |         | (113,062 | ) |   | $ | 82,321 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |             |    |            |   |                                                                                                                                                                    |   |                                                                                                                                                                   |      |   |         |     |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|---------|-----------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------|--------|--------------|----------|
| Consolidating                                                                                                                                              Statement                                                                                                                                              of                                                                                                                                              OperationsFor                                                                                                                                              the                                                                                                                                              Nine                                                                                                                                              Months                                                                                                                                              EndedSeptember 30,                                                                                                                                              2006 |   | PlatinumHoldings |    | PlatinumFinance |   | Non-guarantor                                                                                                                                              Subsidiaries |   | Consolidating                                                                                                                                              Adjustments |      |   | Consolidated |     |
| Revenue:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |             |    |            |   |                                                                                                                                                                    |   |                                                                                                                                                                   |      |   |         |     |
| Net                                                                                                                                              premiums                                                                                                                                              earned                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $                | – |            |   | –                                                                                                                                                                 |   |                                                                                                                                                                   | 1,020,975 |   |         | –  |   |   | $ | 1,020,975 |   |
| Net                                                                                                                                              investment                                                                                                                                              income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |             | 4,474   |            |   | 618                                                                                                                                                                     |   |                                                                                                                                                                   | 132,073   |   |         | –  |   |   |   | 137,165 |   |
| Net                                                                                                                                              realized                                                                                                                                              gains                                                                                                                                              on                                                                                                                                              investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |             | – |            |   | –                                                                                                                                                                 |   |                                                                                                                                                                   | 22        |   |         | –  |   |   |   | 22 |   |
| Other                                                                                                                                              income                                                                                                                                              (expense),                                                                                                                                              net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |             | 3,100   |            |   | –                                                                                                                                                                 |   |                                                                                                                                                                   | (5,027    | )      |         | –  |   |   |   | (1,927 | ) |
| Total                                                                                                                                              revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |             | 7,574   |            |   | 618                                                                                                                                                                     |   |                                                                                                                                                                   | 1,148,043 |   |         | –  |   |   |   | 1,156,235 |   |
| Expenses:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |             |    |            |   |                                                                                                                                                                    |   |                                                                                                                                                                   |      |   |         |     |   |   |   |   |   |
| Net                                                                                                                                              losses                                                                                                                                              and                                                                                                                                              loss                                                                                                                                              adjustment                                                                                                                                              expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |             | – |            |   | –                                                                                                                                                                 |   |                                                                                                                                                                   | 585,666   |   |         | –  |   |   |   | 585,666 |   |
| Net                                                                                                                                              acquisition                                                                                                                                              expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |             | – |            |   | –                                                                                                                                                                 |   |                                                                                                                                                                   | 220,285   |   |         | –  |   |   |   | 220,285 |   |
| Operating                                                                                                                                              expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |             | 16,039  |            |   | 471                                                                                                                                                                     |   |                                                                                                                                                                   | 55,218    |   |         | –  |   |   |   | 71,728 |   |
| Net                                                                                                                                              foreign                                                                                                                                              currency                                                                                                                                              exchange                                                                                                                                              gains                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |             | – |            |   | –                                                                                                                                                                 |   |                                                                                                                                                                   | (461      | )      |         | –  |   |   |   | (461 | ) |
| Interest                                                                                                                                              expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |             | – |            |   | 16,352                                                                                                                                                                  |   |                                                                                                                                                                   | –   |   |         | –  |   |   |   | 16,352 |   |
| Total                                                                                                                                              expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |             | 16,039  |            |   | 16,823                                                                                                                                                                  |   |                                                                                                                                                                   | 860,708   |   |         | –  |   |   |   | 893,570 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |             |    |            |   |                                                                                                                                                                    |   |                                                                                                                                                                   |      |   |         |     |   |   |   |   |   |
| Income                                                                                                                                              (loss)                                                                                                                                              before                                                                                                                                              income                                                                                                                                              tax                                                                                                                                              expense                                                                                                                                              (benefit)                                                                                                                                                                                                                                                                                                                               |   |             | (8,465  | )               |   | (16,205                                                                                                                                                                 | )      |                                                                                                                                                                   | 287,335   |   |         | –  |   |   |   | 262,665 |   |
| Income                                                                                                                                              tax                                                                                                                                              expense                                                                                                                                              (benefit)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |             | – |            |   | (5,656                                                                                                                                                                  | )      |                                                                                                                                                                   | 24,614    |   |         | –  |   |   |   | 18,958 |   |
| Income                                                                                                                                              (loss)                                                                                                                                              before                                                                                                                                              equity                                                                                                                                              in                                                                                                                                              earnings                                                                                                                                              of                                                                                                                                              subsidiaries                                                                                                                                                                            |   |             | (8,465  | )               |   | (10,549                                                                                                                                                                 | )      |                                                                                                                                                                   | 262,721   |   |         | –  |   |   |   | 243,707 |   |
| Equity                                                                                                                                              in                                                                                                                                              earnings                                                                                                                                              of                                                                                                                                              subsidiaries                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |             | 252,172 |            |   | 45,670                                                                                                                                                                  |   |                                                                                                                                                                   | 37,162    |   |         | (335,004 | ) |   |   | – |   |
| Net                                                                                                                                              income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |             | 243,707 |            |   | 35,121                                                                                                                                                                  |   |                                                                                                                                                                   | 299,883   |   |         | (335,004 | ) |   |   | 243,707 |   |
| Preferred                                                                                                                                              dividends                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |             | 7,780   |            |   | –                                                                                                                                                                 |   |                                                                                                                                                                   | –   |   |         | –  |   |   |   | 7,780 |   |
| Net                                                                                                                                              income                                                                                                                                              attributable                                                                                                                                              to                                                                                                                                              common                                                                                                                                              shareholders                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | $                | 235,927 |            |   | 35,121                                                                                                                                                                  |   |                                                                                                                                                                   | 299,883   |   |         | (335,004 | ) |   | $ | 235,927 |   |

----

| Condensed                                                                                                                                              Consolidating                                                                                                                                              Statement                                                                                                                                              of                                                                                                                                              Cash                                                                                                                                              Flows                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |             |     | Non-                                                                                                                                                          |   |                  |   |                                                                                                                                                                   |       |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|--------|
| For                                                                                                                                              the                                                                                                                                              Nine                                                                                                                                              Months                                                                                                                                              EndedSeptember 30,                                                                                                                                              2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | PlatinumHoldings |     | Platinum                                                                                                                                              Finance |   | guarantorSubsidiaries |   | Consolidating                                                                                                                                              Adjustments |       |   | Consolidated |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |             |     |                                                                                                                                                          |   |                  |   |                                                                                                                                                                   |       |   |   |   |
| Net                                                                                                                                              cash                                                                                                                                              provided                                                                                                                                              by                                                                                                                                              (used                                                                                                                                              in)                                                                                                                                              operating                                                                                                                                              activities                                                                                                                                                                                                                                                                                                                         |   | $                | (8,398   | )                                                                                                                                                             |   | (9,319                | )      |                                                                                                                                                                   | 361,532    |   |   | – |   |   | $ | 343,815 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |             |     |                                                                                                                                                          |   |                  |   |                                                                                                                                                                   |       |   |   |   |   |   |   |   |   |
| Investing                                                                                                                                              Activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |             |     |                                                                                                                                                          |   |                  |   |                                                                                                                                                                   |       |   |   |   |   |   |   |   |   |
| Proceeds                                                                                                                                              from                                                                                                                                              sale                                                                                                                                              of                                                                                                                                              available-for-sale                                                                                                                                              fixed                                                                                                                                              maturity                                                                                                                                              securities                                                                                                                                                                                                                                                                                                          |   |             | –  |                                                                                                                                                          |   | 76                    |   |                                                                                                                                                                   | 84,740     |   |   | – |   |   |   | 84,816 |   |
| Proceeds                                                                                                                                              from                                                                                                                                              maturity                                                                                                                                              or                                                                                                                                              paydown                                                                                                                                              of                                                                                                                                              available-for-sale                                                                                                                                              fixed                                                                                                                                              maturity                                                                                                                                              securities |   |             | –  |                                                                                                                                                          |   | 2,176                 |   |                                                                                                                                                                   | 838,053    |   |   | – |   |   |   | 840,229 |   |
| Acquisition                                                                                                                                              of                                                                                                                                              available-for-sale                                                                                                                                              fixed                                                                                                                                              maturities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |             | –  |                                                                                                                                                          |   | –               |   |                                                                                                                                                                   | (1,231,479 | )      |   | – |   |   |   | (1,231,479 | ) |
| Proceeds                                                                                                                                              from                                                                                                                                              sale                                                                                                                                              of                                                                                                                                              other                                                                                                                                              invested                                                                                                                                              asset                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |             | –  |                                                                                                                                                          |   | –               |   |                                                                                                                                                                   | 4,745      |   |   | – |   |   |   | 4,745 |   |
| Increase                                                                                                                                              in                                                                                                                                              short-term                                                                                                                                              investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |             | –  |                                                                                                                                                          |   | –               |   |                                                                                                                                                                   | (5,859     | )      |   | – |   |   |   | (5,859 | ) |
| Dividends                                                                                                                                              from                                                                                                                                              subsidiaries                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |             | 157,500  |                                                                                                                                                          |   | 10,000                |   |                                                                                                                                                                   | –    |   |   | (167,500 | ) |   |   | – |   |
| Net                                                                                                                                              cash                                                                                                                                              provided                                                                                                                                              by                                                                                                                                              (used                                                                                                                                              in)                                                                                                                                              investing                                                                                                                                              activities                                                                                                                                                                                                                                                                                                                         |   |             | 157,500  |                                                                                                                                                          |   | 12,252                |   |                                                                                                                                                                   | (309,800   | )      |   | (167,500 | ) |   |   | (307,548 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |             |     |                                                                                                                                                          |   |                  |   |                                                                                                                                                                   |       |   |   |   |   |   |   |   |   |
| Financing                                                                                                                                              Activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |             |     |                                                                                                                                                          |   |                  |   |                                                                                                                                                                   |       |   |   |   |   |   |   |   |   |
| Dividends                                                                                                                                              paid                                                                                                                                              to                                                                                                                                              preferred                                                                                                                                              shareholders                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |             | (7,806   | )                                                                                                                                                             |   | –               |   |                                                                                                                                                                   | –    |   |   | – |   |   |   | (7,806 | ) |
| Dividends                                                                                                                                              paid                                                                                                                                              to                                                                                                                                              common                                                                                                                                              shareholders                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |             | (14,250  | )                                                                                                                                                             |   | –               |   |                                                                                                                                                                   | (167,500   | )      |   | 167,500 |   |   |   | (14,250 | ) |
| Proceeds                                                                                                                                              from                                                                                                                                              exercise                                                                                                                                              of                                                                                                                                              share                                                                                                                                              options                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |             | 22,640   |                                                                                                                                                          |   | –               |   |                                                                                                                                                                   | –    |   |   | – |   |   |   | 22,640 |   |
| Purchase                                                                                                                                              of                                                                                                                                              common                                                                                                                                              shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |             | (116,973 | )                                                                                                                                                             |   | –               |   |                                                                                                                                                                   | –    |   |   | – |   |   |   | (116,973 | ) |
| Net                                                                                                                                              cash                                                                                                                                              used                                                                                                                                              in                                                                                                                                              financing                                                                                                                                              activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |             | (116,389 | )                                                                                                                                                             |   | –               |   |                                                                                                                                                                   | (167,500   | )      |   | 167,500 |   |   |   | (116,389 | ) |
| Net                                                                                                                                              increase                                                                                                                                              (decrease)                                                                                                                                              in                                                                                                                                              cash                                                                                                                                              and                                                                                                                                              cash                                                                                                                                              equivalents                                                                                                                                                                                                                                                                                                                        |   |             | 32,713   |                                                                                                                                                          |   | 2,933                 |   |                                                                                                                                                                   | (115,768   | )      |   | – |   |   |   | (80,122 | ) |
| Cash                                                                                                                                              and                                                                                                                                              cash                                                                                                                                              equivalents                                                                                                                                              at                                                                                                                                              beginning                                                                                                                                              of                                                                                                                                              period                                                                                                                                                                                                                                                                                                                            |   |             | 106,039  |                                                                                                                                                          |   | 39,294                |   |                                                                                                                                                                   | 706,319    |   |   | – |   |   |   | 851,652 |   |
| Cash                                                                                                                                              and                                                                                                                                              cash                                                                                                                                              equivalents                                                                                                                                              at                                                                                                                                              end                                                                                                                                              of                                                                                                                                              period                                                                                                                                                                                                                                                                                                                                  |   | $                | 138,752  |                                                                                                                                                          |   | 42,227                |   |                                                                                                                                                                   | 590,551    |   |   | – |   |   | $ | 771,530 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                           |    |                                                                                                                                                          |   |                  |   |                                                                                                                                                                   |     |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|--------|
| Condensed                                                                                                                                              Consolidating                                                                                                                                              Statement                                                                                                                                              of                                                                                                                                              Cash                                                                                                                                              Flows                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                                           |    | Non-                                                                                                                                                          |   |                  |   |                                                                                                                                                                   |     |   |
| For                                                                                                                                              the                                                                                                                                              Nine                                                                                                                                              Months                                                                                                                                              EndedSeptember 30,                                                                                                                                              2006                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | Platinum                                                                                                                                              Holdings |    | Platinum                                                                                                                                              Finance |   | guarantorSubsidiaries |   | Consolidating                                                                                                                                              Adjustments |     |   | Consolidated |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                           |    |                                                                                                                                                          |   |                  |   |                                                                                                                                                                   |     |   |   |   |
| Net                                                                                                                                              cash                                                                                                                                              provided                                                                                                                                              by                                                                                                                                              (used                                                                                                                                              in)                                                                                                                                              operating                                                                                                                                              activities                                                                                                                                                                                                                                                                                                                         |   | $                                                                                                                                                              | (11,538 | )                                                                                                                                                             |   | (3,009                | )      |                                                                                                                                                                   | 474,545  |   |   | – |   |   | $ | 459,998 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                           |    |                                                                                                                                                          |   |                  |   |                                                                                                                                                                   |     |   |   |   |   |   |   |   |   |
| Investing                                                                                                                                              Activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                           |    |                                                                                                                                                          |   |                  |   |                                                                                                                                                                   |     |   |   |   |   |   |   |   |   |
| Proceeds                                                                                                                                              from                                                                                                                                              sale                                                                                                                                              of                                                                                                                                              available-for-sale                                                                                                                                              fixed                                                                                                                                              maturity                                                                                                                                              securities                                                                                                                                                                                                                                                                                                          |   |                                                                                                                                                           | – |                                                                                                                                                          |   | –               |   |                                                                                                                                                                   | 195,899  |   |   | – |   |   |   | 195,899 |   |
| Proceeds                                                                                                                                              from                                                                                                                                              maturity                                                                                                                                              or                                                                                                                                              paydown                                                                                                                                              of                                                                                                                                              available-for-sale                                                                                                                                              fixed                                                                                                                                              maturity                                                                                                                                              securities |   |                                                                                                                                                           | – |                                                                                                                                                          |   | 1,212                 |   |                                                                                                                                                                   | 183,397  |   |   | – |   |   |   | 184,609 |   |
| Acquisition                                                                                                                                              of                                                                                                                                              available-for-sale                                                                                                                                              fixed                                                                                                                                              maturity                                                                                                                                              securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                                                                                           | – |                                                                                                                                                          |   | (498                  | )      |                                                                                                                                                                   | (846,778 | )      |   | – |   |   |   | (847,276 | ) |
| Increase                                                                                                                                              in                                                                                                                                              short-term                                                                                                                                              investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                                                                           | – |                                                                                                                                                          |   | -                     |   |                                                                                                                                                                   | (31,412  | )      |   | – |   |   |   | (31,412 | ) |
| Contributions                                                                                                                                              to                                                                                                                                              subsidiaries                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                           | – |                                                                                                                                                          |   | (300                  | )      |                                                                                                                                                                   | 300      |   |   | – |   |   |   | – |   |
| Dividends                                                                                                                                              from                                                                                                                                              subsidiaries                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                                                                                                                           |    |                                                                                                                                                          |   | 20,000                |   |                                                                                                                                                                   |     |   |   | (20,000 | ) |   |   | – |   |
| Net                                                                                                                                              cash                                                                                                                                              used                                                                                                                                              in                                                                                                                                              investing                                                                                                                                              activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                           | – |                                                                                                                                                          |   | 20,414                |   |                                                                                                                                                                   | (498,594 | )      |   | (20,000 | ) |   |   | (498,180 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                           |    |                                                                                                                                                          |   |                  |   |                                                                                                                                                                   |     |   |   |   |   |   |   |   |   |
| Financing                                                                                                                                              Activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                           |    |                                                                                                                                                          |   |                  |   |                                                                                                                                                                   |     |   |   |   |   |   |   |   |   |
| Dividends                                                                                                                                              paid                                                                                                                                              to                                                                                                                                              common                                                                                                                                              shareholders                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                                                                           | (7,216  | )                                                                                                                                                             |   | –               |   |                                                                                                                                                                   | –  |   |   | – |   |   |   | (7,216 | ) |
| Dividends                                                                                                                                              paid                                                                                                                                              to                                                                                                                                              preferred                                                                                                                                              shareholders                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                                                                                           | (14,254 | )                                                                                                                                                             |   | –               |   |                                                                                                                                                                   | (20,000  | )      |   | 20,000 |   |   |   | (14,254 | ) |
| Proceeds                                                                                                                                              from                                                                                                                                              exercise                                                                                                                                              of                                                                                                                                              share                                                                                                                                              options                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                                                                                                                           | 12,229  |                                                                                                                                                          |   | –               |   |                                                                                                                                                                   | –  |   |   | – |   |   |   | 12,229 |   |
| Net                                                                                                                                              cash                                                                                                                                              used                                                                                                                                              in                                                                                                                                              financing                                                                                                                                              activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                           | (9,241  | )                                                                                                                                                             |   | –               |   |                                                                                                                                                                   | (20,000  | )      |   | 20,000 |   |   |   | (9,241 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                           |    |                                                                                                                                                          |   |                  |   |                                                                                                                                                                   |     |   |   |   |   |   |   |   |   |
| Net                                                                                                                                              increase                                                                                                                                              (decrease)                                                                                                                                              in                                                                                                                                              cash                                                                                                                                              and                                                                                                                                              cash                                                                                                                                              equivalents                                                                                                                                                                                                                                                                                                                        |   |                                                                                                                                                           | (20,779 | )                                                                                                                                                             |   | 17,405                |   |                                                                                                                                                                   | (44,049  | )      |   | – |   |   |   | (47,423 | ) |
| Cash                                                                                                                                              and                                                                                                                                              cash                                                                                                                                              equivalents                                                                                                                                              at                                                                                                                                              beginning                                                                                                                                              of                                                                                                                                              period                                                                                                                                                                                                                                                                                                                            |   |                                                                                                                                                           | 129,962 |                                                                                                                                                          |   | 5,010                 |   |                                                                                                                                                                   | 685,774  |   |   | – |   |   |   | 820,746 |   |
| Cash                                                                                                                                              and                                                                                                                                              cash                                                                                                                                              equivalents                                                                                                                                              at                                                                                                                                              end                                                                                                                                              of                                                                                                                                              period                                                                                                                                                                                                                                                                                                                                  |   | $                                                                                                                                                              | 109,183 |                                                                                                                                                          |   | 22,415                |   |                                                                                                                                                                   | 641,725  |   |   | – |   |   | $ | 773,323 |   |

| 7.Cessationof                                                                                                                                      Underwriting                                                                                                                                      in                                                                                                                                      the                                                                                                                                      United                                                                                                                                      Kingdom |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.CompanyShare                                                                                                                                      Repurchase |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

|                                                                                                                                                    |   | 2007 |   |   | 2006   |   |   | Increase |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------|--------|--------|--------|--------|--------|----------|--------|
| Net                                                                                                                                              income |   | $    | 91,303 |   |   |   | 84,923 |     |   | $ | 6,380 |   |

----

|                                                                                                                                                                                                                                                                                                             |   | 2007   |    |   | 2006   |   |    | Decrease |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|----------|--------|
| Gross                                                                                                                                              premiums                                                                                                                                              written |   | $      | 296,530 |   |   |   | 319,625 |     |   | $ | 23,095 |   |
| Ceded                                                                                                                                              premiums                                                                                                                                              written |   |   | 4,398   |   |   |   | 21,625  |     |   |   | 17,227 |   |
| Net                                                                                                                                              premiums                                                                                                                                              written   |   |   | 292,132 |   |   |   | 298,000 |     |   |   | 5,868 |   |
|                                                                                                                                                                                                                                                                                                             |   |   |    |   |   |   |    |     |   |   |   |   |
| Gross                                                                                                                                              premiums                                                                                                                                              earned  |   |   | 293,833 |   |   |   | 369,782 |     |   |   | 75,949 |   |
| Ceded                                                                                                                                              premiums                                                                                                                                              earned  |   |   | 3,523   |   |   |   | 30,173  |     |   |   | 26,650 |   |
| Net                                                                                                                                              premiums                                                                                                                                              earned    |   | $      | 290,310 |   |   |   | 339,609 |     |   | $ | 49,299 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 2007   |    |   | 2006   |   |    | Increase(decrease) |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------------------|--------|
| Net                                                                                                                                              losses                                                                                                                                              and                                                                                                                                              LAE                                                                                                                                                   |   | $      | 163,923 |   |   |   | 191,428 |               |   | $ | (27,505 | ) |
| Net                                                                                                                                              loss                                                                                                                                              and                                                                                                                                              LAE                                                                                                                                              ratios |   |   | 56.5    | %      |   |   | 56.4    | %                  |   | 0.1                                                                                                                                              points |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 2007   |   |   | 2006   |   |   | Decrease |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|----------|--------|
| Net                                                                                                                                              acquisition                                                                                                                                              expenses                                                                                                                                                    |   | $      | 51,445 |   |   |   | 74,994 |     |   | $ | 23,549 |   |
| Net                                                                                                                                              acquisition                                                                                                                                              expense                                                                                                                                              ratios |   |   | 17.7   | %      |   |   | 22.1   | %        |   | 4.4                                                                                                                                              points |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 2007   |   |   | 2006   |   |   | Decrease |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|----------|--------|
| Income                                                                                                                                              tax                                                                                                                                              expense                                                                                                                                                      |   | $      | 4,210  |   |   |   | 7,195  |     |   | $ | 2,985 |   |
| Effective                                                                                                                                              income                                                                                                                                              tax                                                                                                                                              rates |   |   | 4.4    | %      |   |   | 7.8    | %        |   | 3.4                                                                                                                                              points |   |

|                                                                                                                                                        |   | 2007 |    |   | 2006   |   |    | Increase |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------|---------|--------|--------|--------|---------|----------|--------|
| Net                                                                                                                                                  income |   | $    | 254,786 |   |   |   | 243,707 |     |   | $ | 11,079 |   |

|                                                                                                                                                                                                                                                                                                                 |   | 2007   |    |   | 2006   |   |      | Decrease |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|-----------|----------|--------|
| Gross                                                                                                                                                premiums                                                                                                                                                written |   | $      | 894,127 |   |   |   | 984,797   |     |   | $ | 90,670 |   |
| Ceded                                                                                                                                                premiums                                                                                                                                                written |   |   | 15,355  |   |   |   | 83,757    |     |   |   | 68,402 |   |
| Net                                                                                                                                                premiums                                                                                                                                                written   |   |   | 878,772 |   |   |   | 901,040   |     |   |   | 22,268 |   |
|                                                                                                                                                                                                                                                                                                                 |   |   |    |   |   |   |      |     |   |   |   |   |
| Gross                                                                                                                                                premiums                                                                                                                                                earned  |   |   | 887,015 |   |   |   | 1,092,668 |     |   |   | 205,653 |   |
| Ceded                                                                                                                                                premiums                                                                                                                                                earned  |   |   | 15,939  |   |   |   | 71,693    |     |   |   | 55,754 |   |
| Net                                                                                                                                                premiums                                                                                                                                                earned    |   | $      | 871,076 |   |   |   | 1,020,975 |     |   | $ | 149,899 |   |

----

4,417,000                        and $6,215,000 in 2007                        and 2006, respectively.  Net realized gains (losses) on investments                        were ($2,521,000) and $22,000 in 2007 and 2006, respectively.  Net                        realized gains and losses on investments primarily result                        from our efforts to                        manage credit quality, duration and sector allocation of                        the investment                        portfolio as well as to balance our foreign currency denominated                        invested assets                        with our foreign currency denominated liabilities.  Also in 2007,                        Platinum UK sold securities in order to execute transactions                        in connection with                        its Scheme of Operations.  See Note 7 of the Notes to the Condensed                        Consolidated Financial Statements.  We recorded a charge of $809,000                        relating to other-than-temporary impairments which was included                        within net                        realized losses on investments in the consolidated statement                        of operations in                        2007.

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 2007   |    |   | 2006   |   |    | Increase(decrease) |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------------------|--------|
| Net                                                                                                                                              losses                                                                                                                                              and                                                                                                                                              LAE                                                                                                                                                   |   | $      | 510,267 |   |   |   | 585,666 |               |   | $ | (75,399 | ) |
| Net                                                                                                                                              loss                                                                                                                                              and                                                                                                                                              LAE                                                                                                                                              ratios |   |   | 58.6    | %      |   |   | 57.4    | %                  |   | 1.2                                                                                                                                              points |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 2007   |    |   | 2006   |   |    | Decrease |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|----------|--------|
| Net                                                                                                                                                acquisition                                                                                                                                                expenses                                                                                                                                                      |   | $      | 156,392 |   |   |   | 220,285 |     |   | $ | 63,893 |   |
| Net                                                                                                                                                acquisition                                                                                                                                                expense                                                                                                                                                ratios |   |   | 18.0    | %      |   |   | 21.6    | %        |   | 3.6                                                                                                                                                points |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 2007   |   |   | 2006   |   |   | Decrease |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|----------|--------|
| Income                                                                                                                                                tax                                                                                                                                                expense                                                                                                                                                        |   | $      | 13,175 |   |   |   | 18,958 |     |   | $ | 5,783 |   |
| Effective                                                                                                                                                income                                                                                                                                                tax                                                                                                                                                rates |   |   | 4.9    | %      |   |   | 7.2    | %        |   | 2.3                                                                                                                                                points |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | Propertyand                                                                                                                                              Marine |    |   | Casualty |   |    | Finite                                                                                                                                              Risk |   |   | Total  |     |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|--------|----------|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|----------|
| Three                                                                                                                                              months                                                                                                                                              ended                                                                                                                                              September 30,                                                                                                                                              2007:                                                                                                                                               |   |                                                                                                                                                            |    |   |     |   |    |                                                                                                                                                     |   |   |   |     |
| Net                                                                                                                                              premiums                                                                                                                                              written                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $                                                                                                                                                               | 142,549 |   |     |   | 141,214 |                                                                                                                                                     |   |   | 8,369  |     |   | $ | 292,132 |   |
| Net                                                                                                                                              premiums                                                                                                                                              earned                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                            | 128,380 |   |     |   | 153,938 |                                                                                                                                                     |   |   | 7,992  |     |   |   | 290,310 |   |
| Net                                                                                                                                              losses                                                                                                                                              and                                                                                                                                              LAE                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                            | 43,396  |   |     |   | 110,365 |                                                                                                                                                     |   |   | 10,162 |     |   |   | 163,923 |   |
| Net                                                                                                                                              acquisition                                                                                                                                              expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                                                                                                                            | 18,549  |   |     |   | 33,403  |                                                                                                                                                     |   |   | (507   |  )  |   |   | 51,445 |   |
| Other                                                                                                                                              underwriting                                                                                                                                              expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                                                            | 12,086  |   |     |   | 8,304   |                                                                                                                                                     |   |   | 367    |     |   |   | 20,757 |   |
| Segment                                                                                                                                              underwriting                                                                                                                                              income                                                                                                                                              (loss)                                                                                                                                                                                                                                                                                                     |   | $                                                                                                                                                               | 54,349  |   |     |   | 1,866   |                                                                                                                                                     |   |   | (2,030 |  )  |   |   | 54,185 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                                                                                                                            |    |   |     |   |    |                                                                                                                                                     |   |   |   |     |   |   |   |   |
| Net                                                                                                                                              investment                                                                                                                                              income                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                                                                                                                            |    | 54,283 |     |
| Net                                                                                                                                              realized                                                                                                                                              losses                                                                                                                                              on                                                                                                                                              investments                                                                                                                                                        |   |                                                                                                                                                            |    | (864   | )        |
| Net                                                                                                                                              foreign                                                                                                                                              currency                                                                                                                                              exchange                                                                                                                                              gains                                                                                                                                                       |   |                                                                                                                                                            |    | 1,429  |     |
| Other                                                                                                                                              expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                                            |    | (659   | )        |
| Corporate                                                                                                                                              expenses                                                                                                                                              not                                                                                                                                              allocated                                                                                                                                              to                                                                                                                                              segments |   |                                                                                                                                                            |    | (7,404 | )        |
| Interest                                                                                                                                              expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                            |    | (5,457 | )        |
| Income                                                                                                                                              before                                                                                                                                              income                                                                                                                                              tax                                                                                                                                              expense                                                                                                                                                          |   |                                                                                                                                                            | $       | 95,513 |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                                                                                                                            |    |   |     |   |    |                                                                                                                                                     |   |   |   |     |   |   |   |   |
| Ratios:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                                            |    |   |     |   |    |                                                                                                                                                     |   |   |   |     |   |   |   |   |
| Net                                                                                                                                              loss                                                                                                                                              and                                                                                                                                              LAE                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                                            | 33.8    | %      |     |   | 71.7    | %                                                                                                                                                        |   |   | 127.2  | %   |   |   | 56.5 | % |
| Net                                                                                                                                              acquisition                                                                                                                                              expense                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                                                            | 14.4    | %      |     |   | 21.7    | %                                                                                                                                                        |   |   | (6.3   |  %) |   |   | 17.7 | % |
| Other                                                                                                                                              underwriting                                                                                                                                              expense                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                                                                                                                            | 9.4     | %      |     |   | 5.4     | %                                                                                                                                                        |   |   | 4.6    | %   |   |   | 7.1 | % |
| Combined                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                                                                                                                                            | 57.6    | %      |     |   | 98.8    | %                                                                                                                                                        |   |   | 125.5  |     |   |   | 81.3 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                                                                                                                            |    |   |     |   |    |                                                                                                                                                     |   |   |   |     |   |   |   |   |

----

|                                                                                                                   |   |   | Property                                  and Marine   |   |   |   | Casualty  |   |   |   | Finite                                  Risk  |    |   |   | Total  |   |
|-------------------------------------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------|--------|--------|--------|----------------|--------|--------|--------|----------------------------------------------------|---------|--------|--------|-------------|--------|
| Three                                    months ended                                    September 30, 2006: |   |   |                                                             |   |   |   |           |   |   |   |                                               |    |   |   |        |   |
| Net                                    premiums written                                                           |   | $      | 83,018                                                           |   |   |   | 202,302        |   |   |   | 12,680                                             |    |   | $      | 298,000     |   |
| Net                                    premiums earned                                                            |   |   | 97,686                                                           |   |   |   | 214,427        |   |   |   | 27,496                                             |    |   |   | 339,609     |   |
| Net                                    losses and LAE                                                             |   |   | 17,181                                                           |   |   |   | 149,698        |   |   |   | 24,549                                             |    |   |   | 191,428     |   |
| Net                                    acquisition expenses                                                       |   |   | 14,895                                                           |   |   |   | 54,503         |   |   |   | 5,596                                              |    |   |   | 74,994      |   |
| Other                                    underwriting expenses                                                    |   |   | 8,608                                                            |   |   |   | 9,464          |   |   |   | 1,991                                              |    |   |   | 20,063      |   |
| Segment                                    underwriting income (loss)                                             |   | $      | 57,002                                                           |   |   |   | 762            |   |   |   | (4,640                                             |  ) |   |   | 53,124      |   |
|                                                                                                              |   |   |                                                             |   |   |   |           |   |   |   |                                               |    |   |   |        |   |
| Net                                    investment income                                                          |   |   |                                                             | 48,302 |   |
| Net                                    realized gains on investments                                              |   |   |                                                             | (57    | )      |
| Net                                    foreign currency exchange gains                                            |   |   |                                                             | (228   | )      |
| Other                                    expense                                                                  |   |   |                                                             | 1,714  |   |
| Corporate                                    expenses not allocated to segments                                   |   |   |                                                             | (5,285 | )      |
| Interest                                    expense                                                               |   |   |                                                             | (5,452 | )      |
| Income                                    before income tax expense                                               |   |   | $                                                                | 92,118 |   |
|                                                                                                              |   |   |                                                             |   |   |   |           |   |   |   |                                               |    |   |   |        |   |
| Ratios:                                                                                                           |   |   |                                                             |   |   |   |           |   |   |   |                                               |    |   |   |        |   |
| Net                                    loss and LAE                                                               |   |   | 17.6                                                             | %      |   |   | 69.8           | %      |   |   | 89.3                                               | %  |   |   | 56.4        | %      |
| Acquisition                                    expense                                                            |   |   | 15.2                                                             | %      |   |   | 25.4           | %      |   |   | 20.4                                               |  % |   |   | 22.1        | %      |
| Other                                    underwriting expense                                                     |   |   | 8.8                                                              | %      |   |   | 4.4            | %      |   |   | 7.2                                                | %  |   |   | 5.9         | %      |
| Combined                                                                                                          |   |   | 41.6                                                             | %      |   |   | 99.6           | %      |   |   | 116.9                                              |    |   |   | 84.4        | %      |

| Nine                                                  Months Ended                                                  September 30, 2007: |   |   |    |    |   |   |    |   |   |   |   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|---------|--------|--------|---------|--------|--------|--------|--------|--------|
| Net                                                  premiums written                                                                        |   | $      | 399,429 |    |   |   | 455,945 |   |   |   | 23,398 |   |   | $ | 878,772 |   |
| Net                                                  premiums earned                                                                         |   |   | 373,226 |    |   |   | 471,802 |   |   |   | 26,048 |   |   |   | 871,076 |   |
| Net                                                  losses and LAE                                                                          |   |   | 149,265 |    |   |   | 340,740 |   |   |   | 20,262 |   |   |   | 510,267 |   |
| Net                                                  acquisition expenses                                                                    |   |   | 50,748  |    |   |   | 105,499 |   |   |   | 145    |   |   |   | 156,392 |   |
| Other                                                  underwriting expenses                                                                 |   |   | 32,696  |    |   |   | 21,463  |   |   |   | 1,994  |   |   |   | 56,153 |   |
| Segment                                                  underwriting income                                                                 |   | $      | 140,517 |    |   |   | 4,100   |   |   |   | 3,647  |   |   |   | 148,264 |   |
|                                                                                                                                         |   |   |    |    |   |   |    |   |   |   |   |   |   |   |   |   |
| Net                                                  investment income                                                                       |   |   |    | 160,666 |   |
| Net                                                  realized losses on investments                                                          |   |   |    | (2,521  | )      |
| Net                                                  foreign currency exchange gains                                                         |   |   |    | 2,887   |   |
| Other                                                  expense                                                                               |   |   |    | (3,645  | )      |
| Corporate                                                  expenses not allocated to segments                                                |   |   |    | (21,322 | )      |
| Interest                                                  expense                                                                            |   |   |    | (16,368 | )      |
| Income                                                  before income tax expense                                                            |   |   | $       | 267,961 |   |
|                                                                                                                                         |   |   |    |    |   |   |    |   |   |   |   |   |   |   |   |   |
| Ratios:                                                                                                                                      |   |   |    |    |   |   |    |   |   |   |   |   |   |   |   |   |
| Net                                                  loss and LAE                                                                            |   |   | 40.0    | %       |   |   | 72.2    | %      |   |   | 77.8   | %      |   |   | 58.6 | % |
| Net                                                  acquisition expense                                                                     |   |   | 13.6    | %       |   |   | 22.4    | %      |   |   | 0.6    | %      |   |   | 18.0 | % |
| Other                                                  underwriting expense                                                                  |   |   | 8.8     | %       |   |   | 4.5     | %      |   |   | 7.7    | %      |   |   | 6.4 | % |
| Combined                                                                                                                                     |   |   | 62.4    | %       |   |   | 99.1    | %      |   |   | 86.1   | %      |   |   | 83.0 | % |
|                                                                                                                                         |   |   |    |    |   |   |    |   |   |   |   |   |   |   |   |   |

----

|  |   |   | Property                                  and Marine   |   |   |   | Casualty  |   |   |   | Finite                                  Risk  |   |   |   | Total  |   |
|--|--------|--------|------------------------------------------------------------------|--------|--------|--------|----------------|--------|--------|--------|----------------------------------------------------|--------|--------|--------|-------------|--------|

| Nine                                    Months Ended                                    September 30, 2006: |   |   |    |    |   |   |    |   |   |   |    |   |   |   |      |   |
|------------------------------------------------------------------------------------------------------------------|--------|--------|---------|---------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|-----------|--------|
| Net                                    premiums written                                                          |   | $      | 333,906 |    |   |   | 583,950 |   |   |   | (16,816 | )      |   | $      | 901,040   |   |
| Net                                    premiums earned                                                           |   |   | 342,322 |    |   |   | 573,168 |   |   |   | 105,485 |   |   |   | 1,020,975 |   |
| Net                                    losses and LAE                                                            |   |   | 104,876 |    |   |   | 394,087 |   |   |   | 86,703  |   |   |   | 585,666   |   |
| Net                                    acquisition expenses                                                      |   |   | 55,783  |    |   |   | 141,025 |   |   |   | 23,477  |   |   |   | 220,285   |   |
| Other                                    underwriting expenses                                                   |   |   | 27,642  |    |   |   | 23,487  |   |   |   | 3,935   |   |   |   | 55,064    |   |
| Segment                                    underwriting income (loss)                                            |   | $      | 154,021 |    |   |   | 14,569  |   |   |   | (8,630  | )      |   |   | 159,960   |   |
|                                                                                                             |   |   |    |    |   |   |    |   |   |   |    |   |   |   |      |   |
| Net                                    investment income                                                         |   |   |    | 137,165 |   |
| Net                                    realized gains on investments                                             |   |   |    | 22      |   |
| Net                                    foreign currency exchange gains                                           |   |   |    | 461     |   |
| Other                                    expense                                                                 |   |   |    | (1,927  | )      |
| Corporate                                    expenses not allocated to segments                                  |   |   |    | (16,664 | )      |
| Interest                                    expense                                                              |   |   |    | (16,352 | )      |
| Income                                    before income tax expense                                              |   |   | $       | 262,665 |   |
|                                                                                                             |   |   |    |    |   |   |    |   |   |   |    |   |   |   |      |   |
| Ratios:                                                                                                          |   |   |    |    |   |   |    |   |   |   |    |   |   |   |      |   |
| Net                                    loss and LAE                                                              |   |   | 30.6    | %       |   |   | 68.8    | %      |   |   | 82.2    | %      |   |   | 57.4      | %      |
| Net                                    acquisition expense                                                       |   |   | 16.3    | %       |   |   | 24.6    | %      |   |   | 22.3    | %      |   |   | 21.6      | %      |
| Other                                    underwriting expense                                                    |   |   | 8.1     | %       |   |   | 4.1     | %      |   |   | 3.7     | %      |   |   | 5.4       | %      |
| Combined                                                                                                         |   |   | 55.0    | %       |   |   | 97.5    | %      |   |   | 108.2   | %      |   |   | 84.4      | %      |

|                                                                                                                                                                                                                                                                                                                                                             |   | 2007   |    |   | 2006   |   |    | Increase(decrease) |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------------------|--------|
| Gross                                                                                                                                                                      premiums                                                                                                                                                                      written |   | $      | 146,948 |   |   |   | 100,382 |               |   | $ | 46,566 |   |
| Ceded                                                                                                                                                                      premiums                                                                                                                                                                      written |   |   | 4,399   |   |   |   | 17,364  |               |   |   | (12,965 | ) |
| Net                                                                                                                                                                      premiums                                                                                                                                                                      written   |   |   | 142,549 |   |   |   | 83,018  |               |   |   | 59,531 |   |
|                                                                                                                                                                                                                                                                                                                                                             |   |   |    |   |   |   |    |               |   |   |   |   |
| Gross                                                                                                                                                                      premiums                                                                                                                                                                      earned  |   |   | 131,884 |   |   |   | 123,597 |               |   |   | 8,287 |   |
| Ceded                                                                                                                                                                      premiums                                                                                                                                                                      earned  |   |   | 3,504   |   |   |   | 25,911  |               |   |   | (22,407 | ) |
| Net                                                                                                                                                                      premiums                                                                                                                                                                      earned    |   | $      | 128,380 |   |   |   | 97,686  |               |   | $ | 30,694 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 2007   |   |   | 2006   |   |   | Increase |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|----------|--------|
| Net                                                                                                                                                                        losses                                                                                                                                                                        and                                                                                                                                                                        LAE                                                                                                                                                                             |   | $      | 43,396 |   |   |   | 17,181 |     |   | $ | 26,215 |   |
| Net                                                                                                                                                                        loss                                                                                                                                                                        and                                                                                                                                                                        LAE                                                                                                                                                                        ratios |   |   | 33.8   | %      |   |   | 17.6   | %        |   |  16.2                                                                                                                                                                        points |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | 2007   |   |   | 2006   |   |   | Increase(decrease) |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------------------|--------|
| Net                                                                                                                                                                      acquisition                                                                                                                                                                      expenses                                                                                                                                                                            |   | $      | 18,549 |   |   |   | 14,895 |               |   | $ | 3,654 |   |
| Net                                                                                                                                                                      acquisition                                                                                                                                                                      expense                                                                                                                                                                      ratios |   |   | 14.4   | %      |   |   | 15.2   | %                  |   | (0.8)                                                                                                                                                                      points |   |

----

|                                                                                                                                                                                                                                                                                                                                                                 |   | 2007   |    |   | 2006   |   |    | Increase(decrease) |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------------------|--------|
| Gross                                                                                                                                                                        premiums                                                                                                                                                                        written |   | $      | 416,676 |   |   |   | 409,561 |               |   | $ | 7,115 |   |
| Ceded                                                                                                                                                                        premiums                                                                                                                                                                        written |   |   | 17,247  |   |   |   | 75,655  |               |   |   | (58,408 | ) |
| Net                                                                                                                                                                        premiums                                                                                                                                                                        written   |   |   | 399,429 |   |   |   | 333,906 |               |   |   | 65,523 |   |
|                                                                                                                                                                                                                                                                                                                                                                 |   |   |    |   |   |   |    |               |   |   |   |   |
| Gross                                                                                                                                                                        premiums                                                                                                                                                                        earned  |   |   | 391,064 |   |   |   | 404,560 |               |   |   | (13,496 | ) |
| Ceded                                                                                                                                                                        premiums                                                                                                                                                                        earned  |   |   | 17,838  |   |   |   | 62,238  |               |   |   | (44,400 | ) |
| Net                                                                                                                                                                        premiums                                                                                                                                                                        earned    |   | $      | 373,226 |   |   |   | 342,322 |               |   | $ | 30,904 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 2007   |    |   | 2006   |   |    | Increase |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|----------|--------|
| Net                                                                                                                                                                          losses                                                                                                                                                                          and                                                                                                                                                                          LAE                                                                                                                                                                               |   | $      | 149,265 |   |   |   | 104,876 |     |   | $ | 44,389 |   |
| Net                                                                                                                                                                          loss                                                                                                                                                                          and                                                                                                                                                                          LAE                                                                                                                                                                          ratios |   |   | 40.0    | %      |   |   | 30.6    | %        |   | 9.4                                                                                                                                                                          points |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 2007   |   |   | 2006   |   |   | Decrease |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|----------|--------|
| Net                                                                                                                                                                        acquisition                                                                                                                                                                        expenses                                                                                                                                                                              |   | $      | 50,748 |   |   |   | 55,783 |     |   | $ | 5,035 |   |
| Net                                                                                                                                                                        acquisition                                                                                                                                                                        expense                                                                                                                                                                        ratios |   |   | 13.6   | %      |   |   | 16.3   | %        |   | 2.7                                                                                                                                                                        points |   |

7,776,000                          and $6,292,000, respectively, relating to                          the RenRe Agreement.  Additionally, an increased percentage of                          underwriting costs are allocated to the Property and Marine                          segment in 2007 as                          compared with 2006 as the segment represents an increasing                          percentage of the                          written premium and underwriting operations.

----

|                                                                                                                                                                                                                                                                                                                                                                 |   | 2007   |    |   | 2006   |   |    | Decrease |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|----------|--------|
| Gross                                                                                                                                                                        premiums                                                                                                                                                                        written |   | $      | 141,214 |   |   |   | 202,395 |     |   | $ | 61,181 |   |
| Ceded                                                                                                                                                                        premiums                                                                                                                                                                        written |   |   | – |   |   |   | 93      |     |   |   | 93 |   |
| Net                                                                                                                                                                        premiums                                                                                                                                                                        written   |   |   | 141,214 |   |   |   | 202,302 |     |   |   | 61,088 |   |
|                                                                                                                                                                                                                                                                                                                                                                 |   |   |    |   |   |   |    |     |   |   |   |   |
| Gross                                                                                                                                                                        premiums                                                                                                                                                                        earned  |   |   | 153,957 |   |   |   | 214,521 |     |   |   | 60,564 |   |
| Ceded                                                                                                                                                                        premiums                                                                                                                                                                        earned  |   |   | 19      |   |   |   | 94      |     |   |   | 75 |   |
| Net                                                                                                                                                                        premiums                                                                                                                                                                        earned    |   | $      | 153,938 |   |   |   | 214,427 |     |   | $ | 60,489 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 2007   |    |   | 2006   |   |    | Increase(decrease) |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------------------|--------|
| Net                                                                                                                                                                        losses                                                                                                                                                                        and                                                                                                                                                                        LAE                                                                                                                                                                             |   | $      | 110,365 |   |   |   | 149,698 |               |   | $ | (39,333 | ) |
| Net                                                                                                                                                                        loss                                                                                                                                                                        and                                                                                                                                                                        LAE                                                                                                                                                                        ratios |   |   | 71.7    | %      |   |   | 69.8    | %                  |   | 1.9                                                                                                                                                                        points |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 2007   |   |   | 2006   |   |   | Decrease |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|----------|--------|
| Net                                                                                                                                                                        acquisition                                                                                                                                                                        expenses                                                                                                                                                                              |   | $      | 33,403 |   |   |   | 54,503 |     |   | $ | 21,100 |   |
| Net                                                                                                                                                                        acquisition                                                                                                                                                                        expense                                                                                                                                                                        ratios |   |   | 21.7   | %      |   |   | 25.4   | %        |   | 3.7                                                                                                                                                                        points |   |

----

|                                                                                                                                                                                                                                                                                                                                                                 |   | 2007   |    |   | 2006   |   |    | Decrease |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|----------|--------|
| Gross                                                                                                                                                                        premiums                                                                                                                                                                        written |   | $      | 455,996 |   |   |   | 584,026 |     |   | $ | 128,030 |   |
| Ceded                                                                                                                                                                        premiums                                                                                                                                                                        written |   |   | 51      |   |   |   | 76      |     |   |   | 25 |   |
| Net                                                                                                                                                                        premiums                                                                                                                                                                        written   |   |   | 455,945 |   |   |   | 583,950 |     |   |   | 128,005 |   |
|                                                                                                                                                                                                                                                                                                                                                                 |   |   |    |   |   |   |    |     |   |   |   |   |
| Gross                                                                                                                                                                        premiums                                                                                                                                                                        earned  |   |   | 471,845 |   |   |   | 573,244 |     |   |   | 101,399 |   |
| Ceded                                                                                                                                                                        premiums                                                                                                                                                                        earned  |   |   | 43      |   |   |   | 76      |     |   |   | 33 |   |
| Net                                                                                                                                                                        premiums                                                                                                                                                                        earned    |   | $      | 471,802 |   |   |   | 573,168 |     |   | $ | 101,366 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 2007   |    |   | 2006   |   |    | Increase(decrease) |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------------------|--------|
| Net                                                                                                                                                                        losses                                                                                                                                                                        and                                                                                                                                                                        LAE                                                                                                                                                                             |   | $      | 340,740 |   |   |   | 394,087 |               |   | $ | (53,347 | ) |
| Net                                                                                                                                                                        loss                                                                                                                                                                        and                                                                                                                                                                        LAE                                                                                                                                                                        ratios |   |   | 72.2    | %      |   |   | 68.8    | %                  |   | 3.4                                                                                                                                                                        points |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 2007   |    |   | 2006   |   |    | Decrease |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|----------|--------|
| Net                                                                                                                                                                        acquisition                                                                                                                                                                        expenses                                                                                                                                                                              |   | $      | 105,499 |   |   |   | 141,025 |     |   | $ | 35,526 |   |
| Net                                                                                                                                                                        acquisition                                                                                                                                                                        expense                                                                                                                                                                        ratios |   |   | 22.4    | %      |   |   | 24.6    | %        |   | 2.2                                                                                                                                                                        points |   |

----

|                                                                                                                                                                                                                                                                                                                                                             |   | 2007   |    |   | 2006   |   |   | Decrease |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|----------|--------|
| Gross                                                                                                                                                                      premiums                                                                                                                                                                      written |   | $      | 8,368   |   |   |   | 16,848 |     |   | $ | 8,480 |   |
| Ceded                                                                                                                                                                      premiums                                                                                                                                                                      written |   |   | (1      | )      |   |   | 4,168  |     |   |   | 4,169 |   |
| Net                                                                                                                                                                      premiums                                                                                                                                                                      written   |   |   | 8,369   |   |   |   | 12,680 |     |   |   | 4,311 |   |
|                                                                                                                                                                                                                                                                                                                                                             |   |   |    |   |   |   |   |     |   |   |   |   |
| Gross                                                                                                                                                                      premiums                                                                                                                                                                      earned  |   |   | 7,992   |   |   |   | 31,664 |     |   |   | 23,672 |   |
| Ceded                                                                                                                                                                      premiums                                                                                                                                                                      earned  |   |   | – |   |   |   | 4,168  |     |   |   | 4,168 |   |
| Net                                                                                                                                                                      premiums                                                                                                                                                                      earned    |   | $      | 7,992   |   |   |   | 27,496 |     |   | $ | 19,504 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 2007   |   |   | 2006   |   |   | Increase(decrease) |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------------------|--------|
| Net                                                                                                                                                                        losses                                                                                                                                                                        and                                                                                                                                                                        LAE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $      | 10,162 |   |   |   | 24,549 |               |   | $ | (14,387 | ) |
| Net                                                                                                                                                                        loss                                                                                                                                                                        and                                                                                                                                                                        LAE                                                                                                                                                                        ratios                                                                                                                                                                                                                                                                                                                                                                    |   |   | 127.2  | %      |   |   | 89.3   | %                  |   | 37.9                                                                                                                                                                        points |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |               |   |   |   |   |
| Net                                                                                                                                                                        acquisition                                                                                                                                                                        expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $      | (507   | )      |   |   | 5,596  |               |   | $ | (6,103 | ) |
| Net                                                                                                                                                                        acquisition                                                                                                                                                                        expense                                                                                                                                                                        ratios                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | (6.3   | %)     |   |   | 20.4   | %                  |   | (26.7)                                                                                                                                                                        points |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |               |   |   |   |   |
| Net                                                                                                                                                                        losses,                                                                                                                                                                        LAE                                                                                                                                                                        and                                                                                                                                                                        acquisition                                                                                                                                                                        expenses                                                                                                                                                                            |   | $      | 9,655  |   |   |   | 30,145 |               |   | $ | (20,490 | ) |
| Net                                                                                                                                                                        loss,                                                                                                                                                                        LAE                                                                                                                                                                        and                                                                                                                                                                        acquisition                                                                                                                                                                        expense                                                                                                                                                                        ratios |   |   | 120.9  | %      |   |   | 109.7  | %                  |   | 11.2                                                                                                                                                                        points |   |

----

|                                                                                                                                                                                                                                                                                                                                                                 |   | 2007   |   |   | 2006   |   |    | Increase(decrease) |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|---------|--------------------|--------|
| Gross                                                                                                                                                                        premiums                                                                                                                                                                        written |   | $      | 21,455 |   |   |   | (8,790  | )                  |   | $ | 30,245 |   |
| Ceded                                                                                                                                                                        premiums                                                                                                                                                                        written |   |   | (1,943 | )      |   |   | 8,026   |               |   |   | (9,969 | ) |
| Net                                                                                                                                                                        premiums                                                                                                                                                                        written   |   |   | 23,398 |   |   |   | (16,816 | )                  |   |   | 40,214 |   |
|                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |    |               |   |   |   |   |
| Gross                                                                                                                                                                        premiums                                                                                                                                                                        earned  |   |   | 24,106 |   |   |   | 114,864 |               |   |   | (90,758 | ) |
| Ceded                                                                                                                                                                        premiums                                                                                                                                                                        earned  |   |   | (1,942 | )      |   |   | 9,379   |               |   |   | (11,321 | ) |
| Net                                                                                                                                                                        premiums                                                                                                                                                                        earned    |   | $      | 26,048 |   |   |   | 105,485 |               |   | $ | (79,437 | ) |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 2007   |   |   | 2006   |   |    | Decrease |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|---------|----------|--------|
| Net                                                                                                                                                                      losses                                                                                                                                                                      and                                                                                                                                                                      LAE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $      | 20,262 |   |   |   | 86,703  |     |   | $ | 66,441 |   |
| Net                                                                                                                                                                      loss                                                                                                                                                                      and                                                                                                                                                                      LAE                                                                                                                                                                      ratios                                                                                                                                                                                                                                                                                                                                                                |   |   | 77.8   | %      |   |   | 82.2    | %        |   | 4.4                                                                                                                                                                      points |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |    |     |   |   |   |   |
| Net                                                                                                                                                                      acquisition                                                                                                                                                                      expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $      | 145    |   |   |   | 23,477  |     |   | $ | 23,332 |   |
| Net                                                                                                                                                                      acquisition                                                                                                                                                                      expense                                                                                                                                                                      ratios                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   | 0.6    | %      |   |   | 22.3    | %        |   | 21.7                                                                                                                                                                      points |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |    |     |   |   |   |   |
| Net                                                                                                                                                                      losses,                                                                                                                                                                      LAE                                                                                                                                                                      and                                                                                                                                                                      acquisition                                                                                                                                                                      expenses                                                                                                                                                                          |   | $      | 20,407 |   |   |   | 110,180 |     |   | $ | 89,773 |   |
| Net                                                                                                                                                                      loss,                                                                                                                                                                      LAE                                                                                                                                                                      and                                                                                                                                                                      acquisition                                                                                                                                                                      expense                                                                                                                                                                      ratios |   |   | 78.4   | %      |   |   | 104.5   | %        |   | 26.1                                                                                                                                                                      points |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | September 30,                                                                                                                                                                        2007 |      |   | December 31,2006 |   |      | Increase(decrease) |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------|--------|-----------------------|--------|-----------|--------------------|--------|
| Cash                                                                                                                                                                        and                                                                                                                                                                        cash                                                                                                                                                                        equivalents |   | $                                                                                                                                                                                              | 771,530   |   |                  |   | 851,652   |               |   | $ | (80,122 | ) |
| Fixed                                                                                                                                                                        maturity                                                                                                                                                                        securities                                                                                                                                                                        |   |                                                                                                                                                                                           | 3,592,453 |   |                  |   | 3,334,645 |               |   |   | 257,808 |   |
| Preferred                                                                                                                                                                        stocks                                                                                                                                                                                                                                                                                                                                                        |   |                                                                                                                                                                                           | 9,667     |   |                  |   | 10,772    |               |   |   | (1,105 | ) |
| Short-term                                                                                                                                                                        investments                                                                                                                                                                                                                                                                                                                                                  |   |                                                                                                                                                                                           | 33,602    |   |                  |   | 27,123    |               |   |   | 6,479 |   |
| Other                                                                                                                                                                        invested                                                                                                                                                                        asset                                                                                                                                                                             |   |                                                                                                                                                                                           | –   |   |                  |   | 4,745     |               |   |   | (4,745 | ) |
| Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $                                                                                                                                                                                              | 4,407,252 |   |                  |   | 4,228,937 |               |   | $ | 178,315 |   |

244,259,000 that                          was based upon                          estimates.  Reinsurance premiums receivable as of December 31,                          2006 of $377,183,000 included $315,243,000 that was based                          upon                          estimates.  The decrease in reinsurance premiums receivable as of                          September 30, 2007 as compared with December 31, 2006 was due to the                          decrease in premiums written.  An allowance for uncollectible                          reinsurance premiums is considered for possible non-payment                          of such amounts due,                          as deemed necessary.  As of September 30, 2007, based on our                          historical experience, the general profile of our ceding                          companies and our                          ability, in most cases, to contractually offset reinsurance                          premiums receivable                          with losses and LAE or other amounts payable to the same                          parties, we did not                          establish an allowance for uncollectible reinsurance premiums                          receivable.

----

----

Current                            Outlook

----

| 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                                                                                                                                                                                                                                                                                                                                                                                       | $      | 3,693,183                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 3,643,461 |   | 3,592,453 |   | 3,539,643 | $ | 3,485,555 |
| Percent                                                                                                                                                                            change                                                                                                                                                                            in                                                                                                                                                                            market                                                                                                                                                                            value                     |   | 2.8%                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 1.4% |   |   |   | (1.5%) |   | (3.0%) |
| Resulting                                                                                                                                                                            unrealized                                                                                                                                                                            appreciation                                                                                                                                                                            /                                                                                                                                                                            (depreciation) | $      | 51,258                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | 1,536 |   | (49,472) |   | (102,282) | $ | (156,370) |

|                                                                                                                                                                                                                                                                                                                                                                                |   | CarryingAmount |      |   | Fair                                                                                                                                                                              Value |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|-----------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Financial                                                                                                                                                                              assets:                                                                                                                                                                                      |   |           |      |   |                                                                                                                                                                                    |   |
| Fixed                                                                                                                                                                              maturity                                                                                                                                                                              securities |   | $              | 3,592,453 |   |                                                                                                                                                                                    | $      | 3,592,453 |   |
| Preferred                                                                                                                                                                              stocks                                                                                                                                                                                       |   |           | 9,667     |   |                                                                                                                                                                                    |   | 9,667 |   |
| Short-term                                                                                                                                                                              investments                                                                                                                                                                                 |   |           | 33,602    |   |                                                                                                                                                                                    |   | 33,602 |   |
| Financial                                                                                                                                                                              liabilities:                                                                                                                                                                                 |   |           |      |   |                                                                                                                                                                                    |   |   |   |
| Debt                                                                                                                                                                              obligations                                                                                                                                                                                       |   | $              | 292,840   |   |                                                                                                                                                                                    | $      | 301,685 |   |

| Item                                                                                                                                              4.                                                                                                                                              CONTROLS                                                                                                                                              AND                                                                                                                                              PROCEDURES |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |                                            (1) | significant                                          weather-related or other natural or man-made                                          disasters over which we have                                          no control; |
|--------|-----------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                                            (2) | the                                          adequacy of our liability for unpaid losses                                          and loss adjustment expenses,                                          including, but not limited to, losses from                                          Hurricanes Katrina, Rita and                                          Wilma and the possibility that ultimate                                          losses and loss adjustment                                          expenses from these hurricanes may prove                                          to be materially different from                                          estimates made to date; |
|--------|-----------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                                            (3) | the                                          effectiveness of our loss limitation methods                                          and pricing                                          models; |
|--------|-----------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                                            (4) | our                                          ability to maintain our A.M. Best Company,                                          Inc.                                          rating; |
|--------|-----------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                                            (5) | conducting                                          operations in a competitive                                          environment; |
|--------|-----------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|

|   |                                            (6) | the                                          cyclicality of the property and casualty                                          reinsurance                                          business; |
|--------|-----------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                                            (7) | tax,                                          regulatory or legal restrictions or limitations                                          applicable to us or the                                          property and casualty reinsurance business                                          generally; |
|--------|-----------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                                            (8) | our                                          ability to maintain our business relationships                                          with reinsurance                                          brokers; |
|--------|-----------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                                                                                                                                  (9) | the                                                                                                                                availability                                                                                                                                of                                                                                                                                retrocessional                                                                                                                                reinsurance                                                                                                                                on                                                                                                                                acceptable                                                                                                                                terms;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |  (10)                                                                                                                                | market                                                                                                                                volatility                                                                                                                                and                                                                                                                                interest                                                                                                                                rate                                                                                                                                and                                                                                                                                currency                                                                                                                                exchange                                                                                                                                rate                                                                                                                                fluctuation;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |  (11)                                                                                                                                | general                                                                                                                                political                                                                                                                                and                                                                                                                                economic                                                                                                                                conditions,                                                                                                                                including                                                                                                                                the                                                                                                                                effects                                                                                                                                of                                                                                                                                civil                                                                                                                                unrest,                                                                                                                                acts                                                                                                                                of                                                                                                                                terrorism,                                                                                                                                war                                                                                                                                or                                                                                                                                a                                                                                                                                prolonged                                                                                                                                U.S.                                                                                                                                or                                                                                                                                global                                                                                                                                economic                                                                                                                                downturn                                                                                                                                or                                                                                                                                recession;                                                                                                                                and |
|   |  (12)                                                                                                                                | changes                                                                                                                                in                                                                                                                                our                                                                                                                                plans,                                                                                                                                strategies,                                                                                                                                objectives,                                                                                                                                expectations                                                                                                                                or                                                                                                                                intentions,                                                                                                                                which                                                                                                                                may                                                                                                                                happen                                                                                                                                at                                                                                                                                any                                                                                                                                time                                                                                                                                at                                                                                                                                our                                                                                                                                discretion.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |

----

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

| Period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | (a)Total                                                                                                                                                                      Number                                                                                                                                                                      of                                                                                                                                                                      Shares                                                                                                                                                                      Purchased |      |   | (b)Average                                                                                                                                                                      Price                                                                                                                                                                      paid                                                                                                                                                                      per                                                                                                                                                                      Share |   |   | (c)Total                                                                                                                                                                      Number                                                                                                                                                                      of                                                                                                                                                                      Shares                                                                                                                                                                      Purchased                                                                                                                                                                      as                                                                                                                                                                      Part                                                                                                                                                                      of                                                                                                                                                                      Publicly                                                                                                                                                                      Announced                                                                                                                                                                      Plans                                                                                                                                                                      * |   |   | (d)Maximum                                                                                                                                                                      Dollar                                                                                                                                                                      Value                                                                                                                                                                      of                                                                                                                                                                      Shares                                                                                                                                                                      that                                                                                                                                                                      May                                                                                                                                                                      Yet                                                                                                                                                                      Be                                                                                                                                                                      Purchased                                                                                                                                                                      Under                                                                                                                                                                      the                                                                                                                                                                      Plan                                                                                                                                                                      or                                                                                                                                                                      Programs |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| July                                                                                                                                                                      1,                                                                                                                                                                      2007–July                                                                                                                                                                      31,                                                                                                                                                                      2007           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 200,000   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | $      | 33.44  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | 200,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | $ | 243,312,000 |   |
| August                                                                                                                                                                      1,                                                                                                                                                                      2007–August                                                                                                                                                                      31,                                                                                                                                                                      2007       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 2,229,000 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 33.47  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | 2,229,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   | 168,701,000 |   |
| September                                                                                                                                                                      1,                                                                                                                                                                      2007–September                                                                                                                                                                      30,                                                                                                                                                                      2007 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 667,228   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 34.62  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | 667,228                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   | 145,603,000 |   |
| Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 3,096,228 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | $      | 33.72  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | 3,096,228                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | $ | 145,603,000 |   |

|   | * | On                                  August 4, 2004, the Company announced that its                                  Board of Directors had                                  approved a plan to repurchase up to $50,000,000                                  of its common                                  shares.  On July 26, 2007 the Board approved an increase                                  to the                                  existing repurchase plan of $222,561,000 resulting                                  in authority as of such                                  date to repurchase up to a total of $250,000,000                                  under the                                  plan.  On October 25, 2007, the Board approved an additional                                  increase to the repurchase plan of $104,397,273,                                  resulting in authority as                                  of such date to repurchase up to a total of $250,000,000                                  under the                                  plan. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Item                                                                                                                                      6.                                                                                                                                      EXHIBITS |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Exhibit                                                                                                                                                                      Number |   | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.1                                                                                                                                                                                |   | Amendment                                                                                                                                                                      No.                                                                                                                                                                      1                                                                                                                                                                      effective                                                                                                                                                                      October                                                                                                                                                                      3,                                                                                                                                                                      2007                                                                                                                                                                      to                                                                                                                                                                      Trust                                                                                                                                                                      Agreement                                                                                                                                                                      effective                                                                                                                                                                      January 1, 2003                                                                                                                                                                      among                                                                                                                                                                      Platinum                                                                                                                                                                      Bermuda,                                                                                                                                                                      Platinum                                                                                                                                                                      US                                                                                                                                                                      and                                                                                                                                                                      State                                                                                                                                                                      Street                                                                                                                                                                      Bank.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |
| 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.                                                                                                                                                                  |   |

----

SIGNATURES

|   | Platinum                                                                                                                                                                        Underwriters                                                                                                                                                                        Holdings,                                                                                                                                                                        Ltd. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

| Date:                                                                                                                                                                        October                                                                                                                                                                        31,                                                                                                                                                                        2007 | /s/  Michael                                                                                                                                                                        D.                                                                                                                                                                        Price                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | By:                                                                                                                                                                        Michael                                                                                                                                                                        D.                                                                                                                                                                        Price                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | President                                                                                                                                                                        and                                                                                                                                                                        Chief                                                                                                                                                                        Executive                                                                                                                                                                        Officer(Principal                                                                                                                                                                        Executive                                                                                                                                                                        Officer) |

| Date:                                                                                                                                                                        October                                                                                                                                                                        31,                                                                                                                                                                        2007 | /s/  James                                                                                                                                                                        A.                                                                                                                                                                        Krantz                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | By:                                                                                                                                                                        James                                                                                                                                                                        A.                                                                                                                                                                        Krantz                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Executive                                                                                                                                                                        Vice                                                                                                                                                                        President                                                                                                                                                                        and                                                                                                                                                                        Chief                                                                                                                                                                        Financial                                                                                                                                                                        Officer(Principal                                                                                                                                                                        Financial                                                                                                                                                                        and                                                                                                                                                                        Accounting                                                                                                                                                                        Officer) |

----