##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM 10-Q
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
 For the quarterly period ended March 31, 2007
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
 For the transition period from  to
 Commission File Number 001-31341
 Platinum Underwriters Holdings, Ltd.
  Bermuda
    
    98-0416483(State or other jurisdiction of
    
    (I.R.S. Employer Identification No.)incorporation or organization)The Belvedere Building69 Pitts Bay RoadPembroke, Bermuda
    
    HM 08(Address of principal executive offices)
    
    (Zip Code)
 (Registrants telephone number, including area code)
 (Former name, former address and former fiscal year, if changed since last report)
 þ o
  þ o o
 o þ




---



##### 



PagePART I  FINANCIAL INFORMATIONItem 1. Condensed Consolidated Financial StatementsConsolidated Balance Sheets as of March 31, 2007 (Unaudited) and December 31, 2006
    
    
    1Consolidated Statements of Operations and Comprehensive Income for the Three Months Ended March 31, 2007 and 2006 (Unaudited)
    
    
    2Consolidated Statements of Changes in Shareholders Equity for the Three Months Ended March 31, 2007 and 2006 (Unaudited)
    
    
    3Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2007 and 2006 (Unaudited)
    
    
    4Notes to Condensed Consolidated Financial Statements for the Three Months Ended March 31, 2007 and 2006 (Unaudited)
    
    
    5Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    18Item 3. Quantitative and Qualitative Disclosures about Market Risk
    
    
    30Item 4. Controls and Procedures
    
    
    32PART II  OTHER INFORMATION
    
    
    33Item 6. Exhibits
    
    
    33SIGNATURES
    
    
    34EX-10.1: ADDENDUM NO. 1 TO EXCESS OF LOSS RETROCESSION AGREEMENTEX-10.2: FIRST AMENDMENT AND WAIVER TO CREDIT AGREEMENTEX-31.1: CERTIFICATIONEX-31.2: CERTIFICATIONEX-32.1: CERTIFICATIONEX-32.2: CERTIFICATION




---



##### Table of Contents



PART I  FINANCIAL INFORMATION
 
 ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 Platinum Underwriters Holdings, Ltd. and Subsidiaries
 
   (Unaudited)March 31,
    
    
    December 31,2007
    
    
    2006ASSETSInvestments:Fixed maturity available-for-sale securities at fair value
(amortized cost  $3,465,677 and $3,276,970, respectively)
    
    $
    3,425,804
    
    
    $
    3,226,354Fixed maturity trading securities at fair value
(amortized cost  $129,730 and $110,845, respectively)
    
    
    126,509
    
    
    
    108,291Preferred stocks (cost  $11,246 and $11,246, respectively)
    
    
    10,839
    
    
    
    10,772Other invested asset
    
    
    
    
    
    
    4,745Short-term investments
    
    
    8,299
    
    
    
    27,123Total investments
    
    
    3,571,451
    
    
    
    3,377,285Cash and cash equivalents
    
    
    803,652
    
    
    
    851,652Accrued investment income
    
    
    32,597
    
    
    
    32,682Reinsurance premiums receivable
    
    
    364,173
    
    
    
    377,183Reinsurance recoverable on ceded losses and loss adjustment expenses
    
    
    50,344
    
    
    
    57,956Prepaid reinsurance premiums
    
    
    6,725
    
    
    
    9,680Funds held by ceding companies
    
    
    235,319
    
    
    
    238,499Deferred acquisition costs
    
    
    84,538
    
    
    
    82,610Deferred tax assets
    
    
    41,867
    
    
    
    38,577Other assets
    
    
    11,295
    
    
    
    27,443Total assets
    
    $
    5,201,961
    
    
    $
    5,093,567LIABILITIES AND SHAREHOLDERS EQUITYLiabilitiesUnpaid losses and loss adjustment expenses
    
    $
    2,411,319
    
    
    $
    2,368,482Unearned premiums
    
    
    361,147
    
    
    
    349,792Reinsurance deposit liabilities
    
    
    4,079
    
    
    
    4,009Debt obligations
    
    
    292,840
    
    
    
    292,840Ceded premiums payable
    
    
    6,055
    
    
    
    17,597Commissions payable
    
    
    134,749
    
    
    
    140,835Deferred tax liabilities
    
    
    5,473
    
    
    
    4,234Other liabilities
    
    
    49,016
    
    
    
    57,717Total liabilities
    
    
    3,264,678
    
    
    
    3,235,506Shareholders EquityPreferred shares, $.01 par value, 25,000,000 shares authorized,
5,750,000 shares issued and outstanding
    
    
    57
    
    
    
    57Common shares, $.01 par value, 200,000,000 shares authorized,
59,825,816 and 59,671,959 shares issued and outstanding,
respectively
    
    
    598
    
    
    
    597Additional paid-in capital
    
    
    1,550,368
    
    
    
    1,545,979Accumulated other comprehensive loss
    
    
    (34,904
    )
    
    
    (44,289
    )Retained earnings
    
    
    421,164
    
    
    
    355,717Total shareholders equity
    
    
    1,937,283
    
    
    
    1,858,061Total liabilities and shareholders equity
    
    $
    5,201,961
    
    
    $
    5,093,567
  -1-




---



##### Table of Contents



Platinum Underwriters Holdings, Ltd. and Subsidiaries
 
    2007
    
    
    2006Revenue:Net premiums earned
    
    $
    284,848
    
    
    $
    344,301Net investment income
    
    
    51,699
    
    
    
    43,515Net realized gains (losses) on investments
    
    
    (18
    )
    
    
    65Other expense
    
    
    (780
    )
    
    
    (1,317
    )Total revenue
    
    
    335,749
    
    
    
    386,564Expenses:Net losses and loss adjustment expenses
    
    
    181,913
    
    
    
    206,774Net acquisition expenses
    
    
    48,120
    
    
    
    69,239Operating expenses
    
    
    23,206
    
    
    
    22,988Net foreign currency exchange gains
    
    
    (42
    )
    
    
    (275
    )Interest expense
    
    
    5,455
    
    
    
    5,450Total expenses
    
    
    258,652
    
    
    
    304,176Income before income tax expense
    
    
    77,097
    
    
    
    82,388Income tax expense
    
    
    4,264
    
    
    
    5,352Net income
    
    
    72,833
    
    
    
    77,036Preferred dividends
    
    
    2,602
    
    
    
    2,576Net income attributable to common shareholders
    
    $
    70,231
    
    
    $
    74,460Earnings per share:Basic earnings per share
    
    $
    1.18
    
    
    $
    1.26Diluted earnings per share
    
    $
    1.08
    
    
    $
    1.16Comprehensive income:Net income
    
    $
    72,833
    
    
    $
    77,036Other comprehensive income:Net change in unrealized gains and losses on
available-for-sale securities, net of deferred taxes
    
    
    9,429
    
    
    
    (35,315
    )Cumulative translation adjustments, net of deferred taxes
    
    
    (44
    )
    
    
    4Comprehensive income
    
    $
    82,218
    
    
    $
    41,725Shareholder dividends:Preferred dividends declared
    
    $
    2,602
    
    
    $
    2,012Preferred dividends declared per share
    
    
    0.45
    
    
    
    0.35Common dividends declared
    
    
    4,784
    
    
    
    4,733Common dividends declared per share
    
    $
    0.08
    
    
    $
    0.08
  -2-




---



##### Table of Contents



Platinum Underwriters Holdings, Ltd. and Subsidiaries
 
 
 2007
    
    
    2006Preferred shares:Balances at beginning and end of periods
    
    $
    57
    
    
    $
    57Common shares:Balances at beginning of period
    
    
    597
    
    
    
    590Exercise of share options
    
    
    1
    
    
    
    1Issuance of restricted shares
    
    
    
    
    
    
    1Balances at end of period
    
    
    598
    
    
    
    592Additional paid-in-capital:Balances at beginning of period
    
    
    1,545,979
    
    
    
    1,527,316Exercise of common share options
    
    
    2,991
    
    
    
    1,435Share based compensation
    
    
    1,398
    
    
    
    1,736Transfer of unearned common share grant compensation
    
    
    
    
    
    
    (2,467
    )Balances at end of period
    
    
    1,550,368
    
    
    
    1,528,020Unearned common share grant compensation:Balances at beginning of period
    
    
    
    
    
    
    (2,467
    )Transfer of unearned common share grant compensation
    
    
    
    
    
    
    2,467Balances 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
    
    
    9,429
    
    
    
    (35,315
    )Net change in cumulative translation adjustments,
net of deferred tax
    
    
    (44
    )
    
    
    4Balances at end of period
    
    
    (34,904
    )
    
    
    (76,029
    )Retained earnings:Balances at beginning of period
    
    
    355,717
    
    
    
    55,471Net income
    
    
    72,833
    
    
    
    77,036Preferred share dividends
    
    
    (2,602
    )
    
    
    (2,576
    )Common share dividends
    
    
    (4,784
    )
    
    
    (4,733
    )Balances at end of period
    
    
    421,164
    
    
    
    125,198Total shareholders equity
    
    $
    1,937,283
    
    
    $
    1,577,838
  -3-




---



##### Table of Contents



Platinum Underwriters Holdings, Ltd. and Subsidiaries
 
    2007
    
    
    2006Operating Activities:Net income
    
    $
    72,833
    
    
    $
    77,036Adjustments to reconcile net income to cash provided by
operations:Depreciation and amortization
    
    
    3,586
    
    
    
    3,803Net realized (gains) losses on investments
    
    
    18
    
    
    
    (65
    )Net foreign currency exchange gains
    
    
    (42
    )
    
    
    (275
    )Share based compensation
    
    
    1,398
    
    
    
    1,736Deferred income tax expense
    
    
    (3,411
    )
    
    
    87Trading securities activities
    
    
    2,230
    
    
    
    717Changes in assets and liabilities:(Increase) decrease in accrued investment income
    
    
    85
    
    
    
    (351
    )Decrease in reinsurance premiums receivable
    
    
    13,221
    
    
    
    50,020Decrease in funds held by ceding companies
    
    
    3,180
    
    
    
    25,088(Increase) decrease in deferred acquisition costs
    
    
    (1,928
    )
    
    
    25,101Increase in net unpaid losses and loss adjustment expenses
    
    
    49,136
    
    
    
    53,256Increase (decrease) in net unearned premiums
    
    
    14,310
    
    
    
    (50,546
    )Increase (decrease) in reinsurance deposit liabilities
    
    
    70
    
    
    
    (7
    )Increase (decrease) in ceded premiums payable
    
    
    (11,542
    )
    
    
    15,562Decrease in commissions payable
    
    
    (6,086
    )
    
    
    (43,828
    )Net changes in other assets and liabilities
    
    
    (17,826
    )
    
    
    29,634Other net
    
    
    314
    
    
    
    (12
    )Net cash provided by operating activities
    
    
    119,546
    
    
    
    186,956Investing Activities:Proceeds from sale of available-for-sale fixed maturity securities
    
    
    
    
    
    
    179,119Proceeds from maturity or paydown of available-for-sale fixed
maturity securities
    
    
    271,035
    
    
    
    32,535Acquisition of available-for-sale fixed maturity securities
    
    
    (457,939
    )
    
    
    (572,201
    )Proceeds from sale of other invested asset
    
    
    4,745
    
    
    
    Net change in short-term investments
    
    
    19,006
    
    
    
    (71,816
    )Net cash used in investing activities
    
    
    (163,153
    )
    
    
    (432,363
    )Financing Activities:Dividends paid to preferred shareholders
    
    
    (2,602
    )
    
    
    (2,012
    )Dividends paid to common shareholders
    
    
    (4,784
    )
    
    
    (4,733
    )Proceeds from exercise of share options
    
    
    2,993
    
    
    
    1,436Net cash used in financing activities
    
    
    (4,393
    )
    
    
    (5,309
    )Net decrease in cash and cash equivalents
    
    
    (48,000
    )
    
    
    (250,716
    )Cash and cash equivalents at beginning of period
    
    
    851,652
    
    
    
    820,746Cash and cash equivalents at end of period
    
    $
    803,652
    
    
    $
    570,030Supplemental disclosures of cash flow information:Income taxes paid (recovered)
    
    $
    20
    
    
    $
    (8,699
    )Interest paid
    
    $
    
    
    
    $
    
  -4-




---



##### Table of Contents



Platinum Underwriters Holdings, Ltd. and Subsidiaries
 
 
 1. Basis of Presentation
    Recently Issued Accounting Standards
  -5-




---



##### Table of Contents



Platinum Underwriters Holdings, Ltd. and Subsidiaries
   Reclassifications
  2. Investments
  2007
    
    
    2006Fixed maturities
    
    $
    10,808
    
    
    $
    (39,353
    )Less  deferred taxes
    
    
    (1,379
    )
    
    
    4,038Net change in unrealized investment gains and losses
    
    $
    9,429
    
    
    $
    (35,315
    )
   UnrealizedFair Value
    
    
    LossLess than twelve months:U.S. Government
    
    $
    11,441
    
    
    $
    98Corporate bonds
    
    
    438,322
    
    
    
    1,185Mortgage-backed and asset-backed securities
    
    
    273,003
    
    
    
    953Municipal bonds
    
    
    9,870
    
    
    
    26Foreign governments and states
    
    
    3,959
    
    
    
    57Total
    
    
    736,595
    
    
    
    2,319
 -6-




---



##### Table of Contents



Platinum Underwriters Holdings, Ltd. and Subsidiaries
 UnrealizedFair Value
    
    
    LossTwelve months or more:U.S. Government
    
    
    119,733
    
    
    
    1,660Corporate bonds
    
    
    1,016,317
    
    
    
    18,483Mortgage-backed and asset-backed securities
    
    
    773,620
    
    
    
    17,312Municipal bonds
    
    
    181,192
    
    
    
    2,516Foreign governments and states
    
    
    37,061
    
    
    
    640Preferred stocks
    
    
    10,839
    
    
    
    407Total
    
    
    2,138,762
    
    
    
    41,018Total of securities with unrealized losses:U.S. Government
    
    
    131,174
    
    
    
    1,758Corporate bonds
    
    
    1,454,639
    
    
    
    19,668Mortgage-backed and asset-backed securities
    
    
    1,046,623
    
    
    
    18,265Municipal bonds
    
    
    191,062
    
    
    
    2,542Foreign governments and states
    
    
    41,020
    
    
    
    697Preferred stocks
    
    
    10,839
    
    
    
    407Total
    
    $
    2,875,357
    
    
    $
    43,337
    -7-




---



##### Table of Contents



Platinum Underwriters Holdings, Ltd. and Subsidiaries
   3. Earnings Per Share
  WeightedAverage
    
    
    EarningsCommon
    
    
    PerNet
    
    
    Shares
    
    
    CommonIncome
    
    
    Outstanding
    
    
    ShareThree Months Ended March 31, 2007:Basic earnings per share:Net income attributable to
common shareholders
    
    $
    70,231
    
    
    
    59,718
    
    
    $
    1.18Effect of dilutive securities:Common share options,
restricted common shares and
common share units
    
    
    
    
    
    
    1,965Conversion of preferred shares
    
    
    
    
    
    
    5,574Preferred share dividends
    
    
    2,602
    
    
    
    Adjusted net income for diluted
earnings per share
    
    $
    72,833
    
    
    
    67,257
    
    
    $
    1.08Three Months Ended March 31, 2006:Basic earnings per share:Net income attributable to
common shareholders
    
    $
    74,460
    
    
    
    59,097
    
    
    $
    1.26Effect of dilutive securities:Common share options,
restricted common shares and
common share units
    
    
    
    
    
    
    1,810Conversion of preferred shares
    
    
    
    
    
    
    5,690Preferred share dividends
    
    
    2,576
    
    
    
    Adjusted net income for diluted
earnings per share
    
    $
    77,036
    
    
    
    66,597
    
    
    $
    1.16
 4. Operating Segment Information
  -8-




---



##### Table of Contents



Platinum Underwriters Holdings, Ltd. and Subsidiaries
   Propertyand Marine
    
    
    Casualty
    
    
    Finite Risk
    
    
    TotalThree months ended March 31, 2007:Net premiums written
    
    $
    137,654
    
    
    
    152,183
    
    
    
    9,080
    
    
    $
    298,917Net premiums earned
    
    
    119,710
    
    
    
    154,019
    
    
    
    11,119
    
    
    
    284,848Net losses and LAE
    
    
    62,627
    
    
    
    112,382
    
    
    
    6,904
    
    
    
    181,913Net acquisition expenses
    
    
    15,935
    
    
    
    32,035
    
    
    
    150
    
    
    
    48,120Other underwriting expenses
    
    
    10,028
    
    
    
    6,717
    
    
    
    1,034
    
    
    
    17,779Segment underwriting income
    
    $
    31,120
    
    
    
    2,885
    
    
    
    3,031
    
    
    
    37,036Net investment income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    51,699Net realized losses on investments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (18
    )Net foreign currency exchange gains
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    42Other expense
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (780
    )Corporate expenses not allocated
to segments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (5,427
    )Interest expense
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (5,455
    )Income before income tax expense
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    77,097
 -9-




---



##### Table of Contents



Platinum Underwriters Holdings, Ltd. and Subsidiaries
 Propertyand Marine
    
    
    Casualty
    
    
    Finite Risk
    
    
    TotalRatios:Net loss and LAE
    
    
    52.3
    %
    
    
    73.0
    %
    
    
    62.1
    %
    
    
    63.9
    %Net acquisition expense
    
    
    13.3
    %
    
    
    20.8
    %
    
    
    1.3
    %
    
    
    16.9
    %Other underwriting expense
    
    
    8.4
    %
    
    
    4.4
    %
    
    
    9.3
    %
    
    
    6.2
    %Combined
    
    
    74.0
    %
    
    
    98.2
    %
    
    
    72.7
    %
    
    
    87.0
    %Three months ended March 31, 2006:Net premiums written
    
    $
    165,264
    
    
    
    182,350
    
    
    
    (54,336
    )
    
    $
    293,278Net premiums earned
    
    
    131,544
    
    
    
    173,668
    
    
    
    39,089
    
    
    
    344,301Net losses and LAE
    
    
    59,828
    
    
    
    116,565
    
    
    
    30,381
    
    
    
    206,774Net acquisition expenses
    
    
    19,649
    
    
    
    41,354
    
    
    
    8,236
    
    
    
    69,239Other underwriting expenses
    
    
    10,028
    
    
    
    6,335
    
    
    
    925
    
    
    
    17,288Segment underwriting income (loss)
    
    $
    42,039
    
    
    
    9,414
    
    
    
    (453
    )
    
    
    51,000Net investment income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    43,515Net realized gains on investments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    65Net foreign currency exchange gains
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    275Other expense
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,317
    )Corporate expenses not allocated
to segments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (5,700
    )Interest expense
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (5,450
    )Income before income tax expense
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    82,388Ratios:Net loss and LAE
    
    
    45.5
    %
    
    
    67.1
    %
    
    
    77.7
    %
    
    
    60.1
    %Net acquisition expense
    
    
    14.9
    %
    
    
    23.8
    %
    
    
    21.1
    %
    
    
    20.1
    %Other underwriting expense
    
    
    7.6
    %
    
    
    3.6
    %
    
    
    2.4
    %
    
    
    5.0
    %Combined
    
    
    68.0
    %
    
    
    94.5
    %
    
    
    101.2
    %
    
    
    85.2
    %
 5. Income Taxes
   -10-




---



##### Table of Contents



Platinum Underwriters Holdings, Ltd. and Subsidiaries
  2007
    
    
    2006Expected income tax expense at 35%
    
    $
    26,984
    
    
    $
    28,836Effect of foreign income subject to tax at rates other than 35%
    
    
    (22,235
    )
    
    
    (23,226
    )Tax exempt investment income
    
    
    (389
    )
    
    
    (553
    )Other, net
    
    
    (96
    )
    
    
    295Income tax expense
    
    $
    4,264
    
    
    $
    5,352
 6. Condensed Consolidating Financial Information
    -11-




---



##### Table of Contents



Platinum Underwriters Holdings, Ltd. and Subsidiaries
 Non-Condensed Consolidating Balance Sheet
    
    Platinum
    
    
    Platinum
    
    
    guarantor
    
    
    ConsolidatingMarch 31, 2007
    
    Holdings
    
    
    Finance
    
    
    Subsidiaries
    
    
    Adjustments
    
    
    ConsolidatedASSETSTotal investments
    
    $
    
    
    
    
    10,765
    
    
    
    3,560,686
    
    
    
    
    
    
    $
    3,571,451Investment in subsidiaries
    
    
    1,836,102
    
    
    
    487,072
    
    
    
    414,176
    
    
    
    (2,737,350
    )
    
    
    Cash and cash equivalents
    
    
    97,740
    
    
    
    40,469
    
    
    
    665,443
    
    
    
    
    
    
    
    803,652Reinsurance assets
    
    
    
    
    
    
    
    
    
    
    741,099
    
    
    
    
    
    
    
    741,099Other assets
    
    
    6,000
    
    
    
    4,164
    
    
    
    75,595
    
    
    
    
    
    
    
    85,759Total assets
    
    $
    1,939,842
    
    
    
    542,470
    
    
    
    5,456,999
    
    
    
    (2,737,350
    )
    
    $
    5,201,961LIABILITIES AND SHAREHOLDERS EQUITYLiabilitiesReinsurance liabilities
    
    $
    
    
    
    
    
    
    
    
    2,917,349
    
    
    
    
    
    
    $
    2,917,349Debt obligations
    
    
    
    
    
    
    292,840
    
    
    
    
    
    
    
    
    
    
    
    292,840Other liabilities
    
    
    2,559
    
    
    
    7,129
    
    
    
    44,801
    
    
    
    
    
    
    
    54,489Total liabilities
    
    
    2,559
    
    
    
    299,969
    
    
    
    2,962,150
    
    
    
    
    
    
    
    3,264,678Shareholders EquityPreferred shares
    
    
    57
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    57Common shares
    
    
    598
    
    
    
    
    
    
    
    6,250
    
    
    
    (6,250
    )
    
    
    598Additional paid-in capital
    
    
    1,550,368
    
    
    
    192,203
    
    
    
    2,051,468
    
    
    
    (2,243,671
    )
    
    
    1,550,368Accumulated other comprehensive loss
    
    
    (34,904
    )
    
    
    (6,834
    )
    
    
    (43,041
    )
    
    
    49,875
    
    
    
    (34,904
    )Retained earnings
    
    
    421,164
    
    
    
    57,132
    
    
    
    480,172
    
    
    
    (537,304
    )
    
    
    421,164Total shareholders equity
    
    
    1,937,283
    
    
    
    242,501
    
    
    
    2,494,849
    
    
    
    (2,737,350
    )
    
    
    1,937,283Total liabilities and shareholders equity
    
    $
    1,939,842
    
    
    
    542,470
    
    
    
    5,456,999
    
    
    
    (2,737,350
    )
    
    $
    5,201,961
 -12-




---



##### Table of Contents



Platinum Underwriters Holdings, Ltd. and Subsidiaries
 Non-Condensed Consolidating Balance Sheet
    
    Platinum
    
    
    Platinum
    
    
    guarantor
    
    
    ConsolidatingDecember 31, 2006
    
    Holdings
    
    
    Finance
    
    
    Subsidiaries
    
    
    Adjustments
    
    
    ConsolidatedASSETSTotal investments
    
    $
    
    
    
    
    11,342
    
    
    
    3,365,943
    
    
    
    
    
    
    $
    3,377,285Investment in subsidiaries
    
    
    1,749,762
    
    
    
    475,194
    
    
    
    402,098
    
    
    
    (2,627,054
    )
    
    
    Cash and cash equivalents
    
    
    106,039
    
    
    
    39,294
    
    
    
    706,319
    
    
    
    
    
    
    
    851,652Reinsurance assets
    
    
    
    
    
    
    
    
    
    
    765,928
    
    
    
    
    
    
    
    765,928Other assets
    
    
    9,296
    
    
    
    2,374
    
    
    
    87,032
    
    
    
    
    
    
    
    98,702Total assets
    
    $
    1,865,097
    
    
    
    528,204
    
    
    
    5,327,320
    
    
    
    (2,627,054
    )
    
    $
    5,093,567LIABILITIES AND SHAREHOLDERS EQUITYLiabilitiesReinsurance liabilities
    
    $
    
    
    
    
    
    
    
    
    2,880,715
    
    
    
    
    
    
    $
    2,880,715Debt obligations
    
    
    
    
    
    
    292,840
    
    
    
    
    
    
    
    
    
    
    
    292,840Other liabilities
    
    
    7,036
    
    
    
    2,024
    
    
    
    52,891
    
    
    
    
    
    
    
    61,951Total liabilities
    
    
    7,036
    
    
    
    294,864
    
    
    
    2,933,606
    
    
    
    
    
    
    
    3,235,506Shareholders EquityPreferred shares
    
    
    57
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    57Common shares
    
    
    597
    
    
    
    
    
    
    
    6,250
    
    
    
    (6,250
    )
    
    
    597Additional paid-in capital
    
    
    1,545,979
    
    
    
    192,203
    
    
    
    2,051,468
    
    
    
    (2,243,671
    )
    
    
    1,545,979Accumulated other comprehensive loss
    
    
    (44,289
    )
    
    
    (9,071
    )
    
    
    (55,012
    )
    
    
    64,083
    
    
    
    (44,289
    )Retained earnings
    
    
    355,717
    
    
    
    50,208
    
    
    
    391,008
    
    
    
    (441,216
    )
    
    
    355,717Total shareholders equity
    
    
    1,858,061
    
    
    
    233,340
    
    
    
    2,393,714
    
    
    
    (2,627,054
    )
    
    
    1,858,061Total liabilities and shareholders equity
    
    $
    1,865,097
    
    
    
    528,204
    
    
    
    5,327,320
    
    
    
    (2,627,054
    )
    
    $
    5,093,567
 -13-




---



##### Table of Contents



Platinum Underwriters Holdings, Ltd. and Subsidiaries
 Consolidating Statement of Operations
    
    
    
    
    
    
    
    
    
    Non-For the Three Months Ended
    
    Platinum
    
    
    Platinum
    
    
    guarantor
    
    
    ConsolidatingMarch 31, 2007
    
    Holdings
    
    
    Finance
    
    
    Subsidiaries
    
    
    Adjustments
    
    
    ConsolidatedRevenue:Net premiums earned
    
    $
    
    
    
    
    
    
    
    
    284,848
    
    
    
    
    
    
    $
    284,848Net investment income
    
    
    1,358
    
    
    
    638
    
    
    
    49,703
    
    
    
    
    
    
    
    51,699Net realized losses on investments
    
    
    
    
    
    
    
    
    
    
    (18
    )
    
    
    
    
    
    
    (18
    )Other expense, net
    
    
    (170
    )
    
    
    
    
    
    
    (610
    )
    
    
    
    
    
    
    (780
    )Total revenue
    
    
    1,188
    
    
    
    638
    
    
    
    333,923
    
    
    
    
    
    
    
    335,749Expenses:Net losses and loss adjustment expenses
    
    
    
    
    
    
    
    
    
    
    181,913
    
    
    
    
    
    
    
    181,913Net acquisition expenses
    
    
    
    
    
    
    
    
    
    
    48,120
    
    
    
    
    
    
    
    48,120Operating expenses
    
    
    5,311
    
    
    
    96
    
    
    
    17,799
    
    
    
    
    
    
    
    23,206Net foreign currency exchange gains
    
    
    
    
    
    
    
    
    
    
    (42
    )
    
    
    
    
    
    
    (42
    )Interest expense
    
    
    
    
    
    
    5,455
    
    
    
    
    
    
    
    
    
    
    
    5,455Total expenses
    
    
    5,311
    
    
    
    5,551
    
    
    
    247,790
    
    
    
    
    
    
    
    258,652Income (loss) before income tax
expense (benefit)
    
    
    (4,123
    )
    
    
    (4,913
    )
    
    
    86,133
    
    
    
    
    
    
    
    77,097Income tax expense (benefit)
    
    
    
    
    
    
    (2,182
    )
    
    
    6,446
    
    
    
    
    
    
    
    4,264Income (loss) before equity in
earnings of subsidiaries
    
    
    (4,123
    )
    
    
    (2,731
    )
    
    
    79,687
    
    
    
    
    
    
    
    72,833Equity in earnings of subsidiaries
    
    
    76,956
    
    
    
    9,655
    
    
    
    9,470
    
    
    
    (96,081
    )
    
    
    Net income
    
    
    72,833
    
    
    
    6,924
    
    
    
    89,157
    
    
    
    (96,081
    )
    
    
    72,833Preferred dividends
    
    
    (2,602
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,602
    )Net income attributable to common
shareholders
    
    $
    70,231
    
    
    
    6,924
    
    
    
    89,157
    
    
    
    (96,081
    )
    
    $
    70,231
 -14-




---



##### Table of Contents



Platinum Underwriters Holdings, Ltd. and Subsidiaries
 Consolidating Statement of Operations
    
    
    
    
    
    
    
    
    
    Non-For the Three Months Ended
    
    Platinum
    
    
    Platinum
    
    
    guarantor
    
    
    ConsolidatingMarch 31, 2006
    
    Holdings
    
    
    Finance
    
    
    Subsidiaries
    
    
    Adjustments
    
    
    ConsolidatedRevenue:Net premiums earned
    
    $
    
    
    
    
    
    
    
    
    344,301
    
    
    
    
    
    
    $
    344,301Net investment income
    
    
    1,434
    
    
    
    220
    
    
    
    41,861
    
    
    
    
    
    
    
    43,515Net realized gains on investments
    
    
    
    
    
    
    
    
    
    
    65
    
    
    
    
    
    
    
    65Other income (expense), net
    
    
    1,100
    
    
    
    
    
    
    
    (2,417
    )
    
    
    
    
    
    
    (1,317
    )Total revenue
    
    
    2,534
    
    
    
    220
    
    
    
    383,810
    
    
    
    
    
    
    
    386,564Expenses:Net losses and loss adjustment expenses
    
    
    
    
    
    
    
    
    
    
    206,774
    
    
    
    
    
    
    
    206,774Net acquisition expenses
    
    
    
    
    
    
    
    
    
    
    69,239
    
    
    
    
    
    
    
    69,239Operating expenses
    
    
    5,321
    
    
    
    258
    
    
    
    17,409
    
    
    
    
    
    
    
    22,988Net foreign currency exchange gains
    
    
    
    
    
    
    
    
    
    
    (275
    )
    
    
    
    
    
    
    (275
    )Interest expense
    
    
    
    
    
    
    5,450
    
    
    
    
    
    
    
    
    
    
    
    5,450Total expenses
    
    
    5,321
    
    
    
    5,708
    
    
    
    293,147
    
    
    
    
    
    
    
    304,176Income (loss) before income tax
expense (benefit)
    
    
    (2,787
    )
    
    
    (5,488
    )
    
    
    90,663
    
    
    
    
    
    
    
    82,388Income tax expense (benefit)
    
    
    
    
    
    
    (1,920
    )
    
    
    7,272
    
    
    
    
    
    
    
    5,352Income (loss) before equity in
earnings of subsidiaries
    
    
    (2,787
    )
    
    
    (3,568
    )
    
    
    83,391
    
    
    
    
    
    
    
    77,036Equity in earnings of subsidiaries
    
    
    79,823
    
    
    
    10,464
    
    
    
    10,837
    
    
    
    (101,124
    )
    
    
    Net income
    
    
    77,036
    
    
    
    6,896
    
    
    
    94,228
    
    
    
    (101,124
    )
    
    
    77,036Preferred dividends
    
    
    (2,576
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,576
    )Net income attributable to common
shareholders
    
    $
    74,460
    
    
    
    6,896
    
    
    
    94,228
    
    
    
    (101,124
    )
    
    $
    74,460
 -15-




---



##### Table of Contents



Platinum Underwriters Holdings, Ltd. and Subsidiaries
 Condensed Consolidating Statement of Cash Flows
    
    
    
    
    
    
    
    
    
    Non-For the Three Months Ended
    
    
    
    
    
    
    
    
    
    guarantor
    
    
    ConsolidatingMarch 31, 2007
    
    Platinum Holdings
    
    
    Platinum Finance
    
    
    Subsidiaries
    
    
    Adjustments
    
    
    ConsolidatedNet cash provided by (used in)
operating activities
    
    $
    (3,906
    )
    
    
    577
    
    
    
    122,875
    
    
    
    
    
    
    $
    119,546Investing Activities:Proceeds from maturity or paydown of
available-for-sale fixed maturities
    
    
    
    
    
    
    599
    
    
    
    270,436
    
    
    
    
    
    
    
    271,035Acquisition of available-for-sale fixed
maturities
    
    
    
    
    
    
    
    
    
    
    (457,939
    )
    
    
    
    
    
    
    (457,939
    )Proceeds from sale of other invested asset
    
    
    
    
    
    
    
    
    
    
    4,745
    
    
    
    
    
    
    
    4,745Increase in short-term investments
    
    
    
    
    
    
    
    
    
    
    19,006
    
    
    
    
    
    
    
    19,006Net cash provided by (used in)
investing activities
    
    
    
    
    
    
    599
    
    
    
    (163,752
    )
    
    
    
    
    
    
    (163,153
    )Financing Activities:Dividends paid to preferred shareholders
    
    
    (2,602
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,602
    )Dividends paid to common shareholders
    
    
    (4,784
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,784
    )Proceeds from exercise of share options
    
    
    2,993
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,993Net cash used in financing activities
    
    
    (4,393
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,393
    )Net increase (decrease) in cash and
cash equivalents
    
    
    (8,299
    )
    
    
    1,176
    
    
    
    (40,877
    )
    
    
    
    
    
    
    (48,000
    )Cash and cash equivalents at beginning of
period
    
    
    106,039
    
    
    
    39,294
    
    
    
    706,319
    
    
    
    
    
    
    
    851,652Cash and cash equivalents at end of period
    
    $
    97,740
    
    
    
    40,470
    
    
    
    665,442
    
    
    
    
    
    
    $
    803,652
 -16-




---



##### Table of Contents



Platinum Underwriters Holdings, Ltd. and Subsidiaries
 Condensed Consolidating Statement of Cash Flows
    
    
    
    
    
    
    
    
    
    Non-For the Three Months Ended
    
    Platinum
    
    
    Platinum
    
    
    guarantor
    
    
    ConsolidatingMarch 31, 2006
    
    Holdings
    
    
    Finance
    
    
    Subsidiaries
    
    
    Adjustments
    
    
    ConsolidatedNet cash provided by (used in)
operating activities
    
    $
    (3,320
    )
    
    
    5,621
    
    
    
    184,655
    
    
    
    
    
    
    $
    186,956Investing Activities:Proceeds from sale of
available-for-sale fixed maturities
    
    
    
    
    
    
    
    
    
    
    179,119
    
    
    
    
    
    
    
    179,119Proceeds from maturity or paydown of
available-for-sale fixed maturities
    
    
    
    
    
    
    302
    
    
    
    32,233
    
    
    
    
    
    
    
    32,535Acquisition of available-for-sale fixed
maturities
    
    
    
    
    
    
    (498
    )
    
    
    (571,703
    )
    
    
    
    
    
    
    (572,201
    )Increase in short-term investments
    
    
    
    
    
    
    (554
    )
    
    
    (71,262
    )
    
    
    
    
    
    
    (71,816
    )Net cash used in investing activities
    
    
    
    
    
    
    (750
    )
    
    
    (431,613
    )
    
    
    
    
    
    
    (432,363
    )Financing Activities:Dividends paid to common shareholders
    
    
    (4,733
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,733
    )Dividends paid to preferred shareholders
    
    
    (2,012
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,012
    )Proceeds from exercise of share options
    
    
    1,436
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,436Net cash used in financing activities
    
    
    (5,309
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (5,309
    )Net increase (decrease) in cash and
cash equivalents
    
    
    (8,629
    )
    
    
    4,871
    
    
    
    (246,958
    )
    
    
    
    
    
    
    (250,716
    )Cash and cash equivalents at beginning of
period
    
    
    129,962
    
    
    
    5,010
    
    
    
    685,774
    
    
    
    
    
    
    
    820,746Cash and cash equivalents at end of period
    
    $
    121,333
    
    
    
    9,881
    
    
    
    438,816
    
    
    
    
    
    
    $
    570,030
 7. Subsequent Event  Regulatory Approval of Plan to Cease Underwriting in the
United Kingdom
  
 -17-




---



##### Table of Contents



ITEM 2.  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
 Business Overview
      -18-




---



##### Table of Contents



Results of Operations
  2007
    
    2006
    
    DecreaseNet income
    
    $
    72,833
    
    
    
    77,036
    
    
    $
    (4,203
    )
   Increase2007
    
    
    2006
    
    
    (decrease)Gross premiums written
    
    $
    303,135
    
    
    
    335,127
    
    
    $
    (31,992
    )Ceded premiums written
    
    
    4,218
    
    
    
    41,849
    
    
    
    (37,631
    )Net premiums written
    
    
    298,917
    
    
    
    293,278
    
    
    
    5,639Gross premiums earned
    
    
    292,023
    
    
    
    363,212
    
    
    
    (71,189
    )Ceded premiums earned
    
    
    7,175
    
    
    
    18,911
    
    
    
    (11,736
    )Net premiums earned
    
    $
    284,848
    
    
    
    344,301
    
    
    $
    (59,453
    )
  - 19 -




---



##### Table of Contents



Increase2007
    
    2006
    
    (decrease)Net losses and LAE
    
    $
    181,913
    
    
    
    206,774
    
    
    $
    (24,861
    )Net loss and LAE ratios
    
    
    63.9
    %
    
    
    60.1
    %
    
    3.8 points
   2007
    
    2006
    
    DecreaseNet acquisition expenses
    
    $
    48,120
    
    
    
    69,239
    
    
    $
    (21,119
    )Net acquisition expense ratios
    
    
    16.9
    %
    
    
    20.1
    %
    
    (3.2) points
  - 20 -




---



##### Table of Contents



2007
    
    2006
    
    DecreaseIncome tax expense
    
    $
    4,264
    
    
    
    5,352
    
    
    $
    (1,088
    )Effective income tax rates
    
    
    5.5
    %
    
    
    6.5
    %
    
    (1.0) points
  Segment Information
  - 21 -




---



##### Table of Contents



Propertyand Marine
    
    
    Casualty
    
    
    Finite Risk
    
    
    TotalThree months ended March 31, 2007:Net premiums written
    
    $
    137,654
    
    
    
    152,183
    
    
    
    9,080
    
    
    $
    298,917Net premiums earned
    
    
    119,710
    
    
    
    154,019
    
    
    
    11,119
    
    
    
    284,848Net losses and LAE
    
    
    62,627
    
    
    
    112,382
    
    
    
    6,904
    
    
    
    181,913Net acquisition expenses
    
    
    15,935
    
    
    
    32,035
    
    
    
    150
    
    
    
    48,120Other underwriting expenses
    
    
    10,028
    
    
    
    6,717
    
    
    
    1,034
    
    
    
    17,779Segment underwriting income
    
    $
    31,120
    
    
    
    2,885
    
    
    
    3,031
    
    
    
    37,036Net investment income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    51,699Net realized losses on investments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (18
    )Net foreign currency exchange gains
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    42Other expense
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (780
    )Corporate expenses not allocated
to segments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (5,427
    )Interest expense
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (5,455
    )Income before income tax expense
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    77,097Ratios:Net loss and LAE
    
    
    52.3
    %
    
    
    73.0
    %
    
    
    62.1
    %
    
    
    63.9
    %Net acquisition expense
    
    
    13.3
    %
    
    
    20.8
    %
    
    
    1.3
    %
    
    
    16.9
    %Other underwriting expense
    
    
    8.4
    %
    
    
    4.4
    %
    
    
    9.3
    %
    
    
    6.2
    %Combined
    
    
    74.0
    %
    
    
    98.2
    %
    
    
    72.7
    %
    
    
    87.0
    %Three months ended March 31, 2006:Net premiums written
    
    $
    165,264
    
    
    
    182,350
    
    
    
    (54,336
    )
    
    $
    293,278Net premiums earned
    
    
    131,544
    
    
    
    173,668
    
    
    
    39,089
    
    
    
    344,301Net losses and LAE
    
    
    59,828
    
    
    
    116,565
    
    
    
    30,381
    
    
    
    206,774Net acquisition expenses
    
    
    19,649
    
    
    
    41,354
    
    
    
    8,236
    
    
    
    69,239Other underwriting expenses
    
    
    10,028
    
    
    
    6,335
    
    
    
    925
    
    
    
    17,288Segment underwriting income (loss)
    
    $
    42,039
    
    
    
    9,414
    
    
    
    (453
    )
    
    
    51,000Net investment income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    43,515Net realized gains on investments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    65Net foreign currency exchange gains
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    275Other expense
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,317
    )Corporate expenses not allocated
to segments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (5,700
    )Interest expense
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (5,450
    )Income before income tax expense
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    82,388Ratios:Net loss and LAE
    
    
    45.5
    %
    
    
    67.1
    %
    
    
    77.7
    %
    
    
    60.1
    %Net acquisition expense
    
    
    14.9
    %
    
    
    23.8
    %
    
    
    21.1
    %
    
    
    20.1
    %Other underwriting expense
    
    
    7.6
    %
    
    
    3.6
    %
    
    
    2.4
    %
    
    
    5.0
    %Combined
    
    
    68.0
    %
    
    
    94.5
    %
    
    
    101.2
    %
    
    
    85.2
    %
 - 22 -




---



##### Table of Contents



Property and Marine
   2007
    
    
    2006
    
    
    DecreaseGross premiums written
    
    $
    143,791
    
    
    
    206,991
    
    
    $
    (63,200
    )Ceded premiums written
    
    
    6,137
    
    
    
    41,727
    
    
    
    (35,590
    )Net premiums written
    
    
    137,654
    
    
    
    165,264
    
    
    
    (27,610
    )Gross premiums earned
    
    
    128,817
    
    
    
    148,979
    
    
    
    (20,162
    )Ceded premiums earned
    
    
    9,107
    
    
    
    17,435
    
    
    
    (8,328
    )Net premiums earned
    
    $
    119,710
    
    
    
    131,544
    
    
    $
    (11,834
    )
   2007
    
    2006
    
    IncreaseNet losses and LAE
    
    $
    62,627
    
    
    
    59,828
    
    
    $
    2,799Net loss and LAE ratios
    
    
    52.3
    %
    
    
    45.5
    %
    
    6.8 points
   2007
    
    2006
    
    DecreaseNet acquisition expenses
    
    $
    15,935
    
    
    
    19,649
    
    
    $
    (3,714
    )Net acquisition expense ratios
    
    
    13.3
    %
    
    
    14.9
    %
    
    (1.6) points
 - 23 -




---



##### Table of Contents



Casualty
   Increase2007
    
    
    2006
    
    
    (decrease)Gross premiums written
    
    $
    152,206
    
    
    
    182,332
    
    
    $
    (30,126
    )Ceded premiums written
    
    
    23
    
    
    
    (18
    )
    
    
    41Net premiums written
    
    
    152,183
    
    
    
    182,350
    
    
    
    (30,167
    )Gross premiums earned
    
    
    154,029
    
    
    
    173,651
    
    
    
    (19,622
    )Ceded premiums earned
    
    
    10
    
    
    
    (17
    )
    
    
    27Net premiums earned
    
    $
    154,019
    
    
    
    173,668
    
    
    $
    (19,649
    )
   Increase2007
    
    2006
    
    (decrease)Net losses and LAE
    
    $
    112,382
    
    
    
    116,565
    
    
    $
    (4,183
    )Net loss and LAE ratios
    
    
    73.0
    %
    
    
    67.1
    %
    
    5.9 points
  - 24 -




---



##### Table of Contents



2007
    
    2006
    
    DecreaseNet acquisition expenses
    
    $
    32,035
    
    
    
    41,354
    
    
    $
    (9,319
    )Net acquisition expense ratios
    
    
    20.8
    %
    
    
    23.8
    %
    
    (3.0) points
   Finite Risk
   Increase2007
    
    
    2006
    
    
    (decrease)Gross premiums written
    
    $
    7,138
    
    
    
    (54,196
    )
    
    $
    61,334Ceded premiums written
    
    
    (1,942
    )
    
    
    140
    
    
    
    (2,082
    )Net premiums written
    
    
    9,080
    
    
    
    (54,336
    )
    
    
    63,416Gross premiums earned
    
    
    9,177
    
    
    
    40,582
    
    
    
    (31,405
    )Ceded premiums earned
    
    
    (1,942
    )
    
    
    1,493
    
    
    
    (3,435
    )Net premiums earned
    
    $
    11,119
    
    
    
    39,089
    
    
    $
    (27,970
    )
 - 25 -




---



##### Table of Contents



2007
    
    2006
    
    DecreaseNet losses and LAE
    
    $
    6,904
    
    
    
    30,381
    
    
    $
    (23,477
    )Net loss and LAE ratios
    
    
    62.1
    %
    
    
    77.7
    %
    
    (15.6) pointsNet acquisition expenses
    
    $
    150
    
    
    
    8,236
    
    
    $
    (8,086
    )Net acquisition expense ratios
    
    
    1.3
    %
    
    
    21.1
    %
    
    (19.8) pointsNet losses, LAE and acquisition expenses
    
    $
    7,054
    
    
    
    38,617
    
    
    $
    (31,563
    )Net loss, LAE and acquisition expense ratios
    
    
    63.4
    %
    
    
    98.8
    %
    
    (35.4) points
   Financial Condition, Liquidity and Capital Resources
 Financial Condition
  March 31,
    
    
    December 31,
    
    
    Increase2007
    
    
    2006
    
    
    (decrease)Cash and cash equivalents
    
    $
    803,652
    
    
    
    851,652
    
    
    $
    (48,000
    )Fixed maturity securities
    
    
    3,552,313
    
    
    
    3,334,645
    
    
    
    217,668Preferred stocks
    
    
    10,839
    
    
    
    10,772
    
    
    
    67Short-term investments
    
    
    8,299
    
    
    
    27,123
    
    
    
    (18,824
    )Other invested asset
    
    
    
    
    
    
    4,745
    
    
    
    (4,745
    )Total
    
    $
    4,375,103
    
    
    
    4,228,937
    
    
    $
    146,166
  - 26 -




---



##### Table of Contents



Sources of Liquidity
    - 27 -




---



##### Table of Contents



Liquidity Requirements
     Capital Resources
  Economic Conditions
  - 28 -




---



##### Table of Contents



Current Outlook
        - 29 -




---



##### Table of Contents



Critical Accounting Estimates
  
 ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
 Market and Credit Risk
   - 30 -




---



##### Table of Contents



Interest Rate Risk
  Interest Rate Shift in Basis Points- 100 bp
    
    - 50 bp
    
    Current
    
    + 50 bp
    
    + 100 bpTotal market value
    
    $
    3,640,775
    
    
    
    3,597,665
    
    
    
    3,552,313
    
    
    
    3,504,496
    
    
    $
    3,454,322Percent change in market value
    
    
    2.5
    %
    
    
    1.3
    %
    
    
    
    
    
    
    (1.3
    %)
    
    
    (2.8
    %)Resulting unrealized
appreciation / (depreciation)
    
    $
    45,368
    
    
    
    2,258
    
    
    
    (43,094
    )
    
    
    (90,911
    )
    
    $
    (141,085
    )
 Foreign Currency Exchange Rate Risk
  Sources of Fair Value
  CarryingAmount
    
    Fair ValueFinancial assets:Fixed maturity securities
    
    $
    3,552,313
    
    
    $
    3,552,313Preferred stocks
    
    
    10,839
    
    
    
    10,839Short-term investments
    
    
    8,299
    
    
    
    8,299Financial liabilities:Debt obligations
    
    $
    292,840
    
    
    $
    305,490
 - 31 -




---



##### Table of Contents



Item 4. CONTROLS AND PROCEDURES
 Disclosure Controls and Procedures
  Changes in Internal Control over Financial Reporting
  Forward-Looking Statements
    (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
 - 32 -




---



##### Table of Contents



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.
  
 PART II  OTHER INFORMATION
 
 Item 6. EXHIBITS
 ExhibitNumber
    
    Description10.1
    
    Addendum No. 1 to the Excess of Loss Retrocession Agreement
by and between Platinum Underwriters Bermuda, Ltd. and
Platinum Underwriters Reinsurance, Inc. dated as of April
1, 200610.2
    
    First Amendment and Waiver to
Amended and Restated Credit Agreement31.1
    
    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 Joseph F. Fisher, 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 Joseph F. Fisher, 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.
 - 33 -




---



##### Table of Contents



SIGNATURES
  Platinum Underwriters Holdings, LtdDate: April 27, 2007
    
    
    
    /s/ Michael D. PriceBy: Michael D. PricePresident and Chief Executive Officer(Principal Executive Officer)Date: April 27, 2007
    
    
    
    /s/Joseph F. FisherBy: Joseph F. FisherExecutive Vice President and Chief Financial Officer(Principal Financial Officer)Date: April 27, 2007
    
    
    
    /s/James A. KrantzBy: James A. KrantzSenior Vice President and Chief Accounting Officer(Principal Accounting Officer)
 - 34 -