----

----

| X                        | ANNUAL      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934     |
|--------------------------|----------------------------------------------------------------------------------------------------|
|                     | For      the fiscal year ended December 31,      2008                                         |
|                     | or                                                                                                 |
|      | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|                     | For      the transition period from __________ to  ___________                                     |

| Bermuda(State      or other jurisdiction ofincorporation      or organization) |   | 98-0416483(I.R.S.      EmployerIdentification      No.) |
|--------------------------------------------------------------------------------|--------|---------------------------------------------------------|

| Title of each class                           | Name of each exchange on which      registered |
|-----------------------------------------------|------------------------------------------------|
| Common      Shares, par value $0.01 per share | New      York Stock Exchange                   |
|                                          |                                           |

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

----

|                                                                                                                | Page                                                                                                                         |
|---------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                |
| PART      I                                                                                                         |
|                                                                                                                |
| Item      1.                                                                                                        | Business                                                                                                                     | 1 |
| Item      1A.                                                                                                       | Risk      Factors                                                                                                            | 16 |
| Item      1B.                                                                                                       | Unresolved      Staff Comments                                                                                               | 24 |
| Item      2.                                                                                                        | Properties                                                                                                                   | 24 |
| Item      3.                                                                                                        | Legal      Proceedings                                                                                                       | 24 |
| Item      4.                                                                                                        | Submission      of Matters to a Vote of Security Holders                                                                     | 24 |
|                                                                                                                |                                                                                                                         |
| PART      II                                                                                                        |
|                                                                                                                |
| Item      5.                                                                                                        | Market      For Registrant’s Common Equity, Related Shareholder Matters and Issuer      Purchases of Equity Securities | 24 |
| Item      6.                                                                                                        | Selected      Financial Data                                                                                                 | 27 |
| Item      7.                                                                                                        | Management’s      Discussion and Analysis of Financial Condition and Results      of Operations                        | 27 |
| Item      7A.                                                                                                       | Quantitative      and Qualitative Disclosures About Market Risk                                                              | 46 |
| Item      8.                                                                                                        | Financial      Statements and Supplementary Data                                                                             | 48 |
| Item      9.                                                                                                        | Changes      in and Disagreements With Accountants on Accounting and Financial      Disclosure                               | 48 |
| Item      9A.                                                                                                       | Controls      and Procedures                                                                                                 | 48 |
| Independent      Registered Public Accounting Firm’s Report on Internal Control over      Financial Reporting | 49                                                                                                                           |
| Item      9B.                                                                                                       | Other      Information                                                                                                       | 50 |
|                                                                                                                |                                                                                                                         |
| PART      III                                                                                                       |
|                                                                                                                |
| Item      10.                                                                                                       | Directors,      Executive Officers and Corporate Governance                                                                  | 50 |
| Item      11.                                                                                                       | Executive      Compensation                                                                                                  | 50 |
| Item      12.                                                                                                       | Security      Ownership of Certain Beneficial Owners and Management and Related      Shareholder Matters                     | 50 |
| Item      13.                                                                                                       | Certain      Relationships and Related Transactions, and Director      Independence                                          | 51 |
| Item      14.                                                                                                       | Principal      Accountant Fees and Services                                                                                  | 51 |
|                                                                                                                |                                                                                                                         |
| PART      IV                                                                                                        |
|                                                                                                                |
| Item      15.                                                                                                       | Exhibits      and Financial Statement Schedules                                                                              | 51 |
|                                                                                                                |                                                                                                                         |
| Signatures                                                                                                          | 57                                                                                                                           |
| Platinum      Underwriters Holdings, Ltd. and Subsidiaries Consolidated Financial      Statements                   | F-1                                                                                                                          |
| Index      to Schedules to Consolidated Financial Statements                                                        | S-1                                                                                                                          |
| Exhibits                                                                                                            |                                                                                                                         |

----

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

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

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

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

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

|   | • | conducting      operations in a competitiveenvironment; |
|--------|---------|---------------------------------------------------------|

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

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

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

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

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

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

|  Item 1. | Business |
|---------------|----------|

----

|   | ● | Operate as a multi-class      reinsurer.  We seek to offer a broad range of reinsurance      coverages to our ceding companies.  We believe that this      approach enables us to more effectively serve our clients, diversify our      risk and leverage our capital. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Focus on profitability, not      market share.  Our management team pursues a strategy      that emphasizes profitability rather than market share.  Key      elements of this strategy are prudent risk selection, appropriate pricing      and adjustment of our business mix to respond to changing market      conditions. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Exercise disciplined      underwriting and risk management.  We exercise      underwriting and risk management discipline by: (i) maintaining a diverse      spread of risk in our book of business across product lines and geographic      zones, (ii) emphasizing excess-of-loss contracts over proportional      contracts, (iii) managing our aggregate property catastrophe exposure      through the application of sophisticated modeling tools and (iv)      monitoring our accumulating exposures on non-property catastrophe exposed      coverages. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Operate from a position of      financial strength.  Our capital is unencumbered by any      potential adverse development of unpaid losses for business written prior      to January 1, 2002.  Our investment strategy focuses on      security and stability in our investment portfolio by maintaining a      portfolio that consists primarily of diversified, high quality,      predominantly publicly traded fixedmaturities. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                              |   | Years      Ended December 31, |      |
|-----------------------------------|--------|-------------------------------|-----------|
|                              |   | 2008                          |      |   | 2007 |   |   | 2006 |   |
|                              |   | Net      Premiums Written     |      |   | Percentage      of Net Premiums Written |   |   | Net      Premiums Written |   |   | Percentage      of Net Premiums Written |   |   | Net      Premiums Written |   |   | Percentage      of Net Premiums Written |   |
|                              |   |                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Property      and Marine          |   |                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Excess-of-loss                    |   | $                             | 436,951   |   |   |   | 42 | % |   |   | 427,230 |   |   |   | 38 | % |   | $ | 318,260 |   |   |   | 27 | % |
| Proportional                      |   |                          | 156,136   |   |   |   | 15 | % |   |   | 77,780 |   |   |   | 7 | % |   |   | 106,669 |   |   |   | 9 | % |
| Subtotal      Property and Marine |   |                          | 593,087   |   |   |   | 57 | % |   |   | 505,010 |   |   |   | 45 | % |   |   | 424,929 |   |   |   | 36 | % |
|                              |   |                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Casualty                          |   |                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Excess-of-loss                    |   |                          | 373,307   |   |   |   | 36 | % |   |   | 522,812 |   |   |   | 47 | % |   |   | 663,338 |   |   |   | 56 | % |
| Proportional                      |   |                          | 56,777    |   |   |   | 6 | % |   |   | 61,793 |   |   |   | 6 | % |   |   | 94,337 |   |   |   | 8 | % |
| Subtotal      Casualty            |   |                          | 430,084   |   |   |   | 42 | % |   |   | 584,605 |   |   |   | 53 | % |   |   | 757,675 |   |   |   | 64 | % |
|                              |   |                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Finite      Risk                  |   |                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Excess-of-loss                    |   |                          | 3,277     |   |   |   | 0 | % |   |   | 26,140 |   |   |   | 2 | % |   |   | 50,220 |   |   |   | 4 | % |
| Proportional                      |   |                          | 11,117    |   |   |   | 1 | % |   |   | 4,052 |   |   |   | 0 | % |   |   | (56,211 | ) |   |   | (4 | %) |
| Subtotal      Finite Risk         |   |                          | 14,394    |   |   |   | 1 | % |   |   | 30,192 |   |   |   | 2 | % |   |   | (5,991 | ) |   |   | 0 | % |
|                              |   |                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Combined      Segments            |   |                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Excess-of-loss                    |   |                          | 813,535   |   |   |   | 78 | % |   |   | 976,182 |   |   |   | 87 | % |   |   | 1,031,818 |   |   |   | 87 | % |
| Proportional                      |   |                          | 224,030   |   |   |   | 22 | % |   |   | 143,625 |   |   |   | 13 | % |   |   | 144,795 |   |   |   | 13 | % |
| Total                             |   | $                             | 1,037,565 |   |   |   | 100 | % |   |   | 1,119,807 |   |   |   | 100 | % |   | $ | 1,176,613 |   |   |   | 100 | % |

|                              |   | Years      Ended December 31, |      |
|-----------------------------------|--------|-------------------------------|-----------|
|                              |   | 2008                          |      |   | 2007 |   |   | 2006 |   |
|                              |   | Net      Premiums Written     |      |   | Percentage      of Net Premiums Written |   |   | Net      Premiums Written |   |   | Percentage      of Net Premiums Written |   |   | Net      Premiums Written |   |   | Percentage      of Net Premiums Written |   |
|                              |   |                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Property      and Marine          |   |                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| United      States                |   | $                             | 377,328   |   |   |   | 36 | % |   |   | 294,975 |   |   |   | 26 | % |   | $ | 275,870 |   |   |   | 23 | % |
| International                     |   |                          | 215,759   |   |   |   | 21 | % |   |   | 210,035 |   |   |   | 19 | % |   |   | 149,059 |   |   |   | 13 | % |
| Subtotal      Property and Marine |   |                          | 593,087   |   |   |   | 57 | % |   |   | 505,010 |   |   |   | 45 | % |   |   | 424,929 |   |   |   | 36 | % |
|                              |   |                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Casualty                          |   |                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| United      States                |   |                          | 366,444   |   |   |   | 36 | % |   |   | 510,552 |   |   |   | 45 | % |   |   | 686,278 |   |   |   | 58 | % |
| International                     |   |                          | 63,640    |   |   |   | 6 | % |   |   | 74,053 |   |   |   | 7 | % |   |   | 71,397 |   |   |   | 6 | % |
| Subtotal      Casualty            |   |                          | 430,084   |   |   |   | 42 | % |   |   | 584,605 |   |   |   | 52 | % |   |   | 757,675 |   |   |   | 64 | % |
|                              |   |                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Finite      Risk                  |   |                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| United      States                |   |                          | 13,161    |   |   |   | 1 | % |   |   | 29,932 |   |   |   | 3 | % |   |   | (12,626 | ) |   |   | (1 | %) |
| International                     |   |                          | 1,233     |   |   |   | 0 | % |   |   | 260 |   |   |   | 0 | % |   |   | 6,635 |   |   |   | 1 | % |
| Subtotal      Finite Risk         |   |                          | 14,394    |   |   |   | 1 | % |   |   | 30,192 |   |   |   | 3 | % |   |   | (5,991 | ) |   |   | 0 | % |
|                              |   |                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Combined      Segments            |   |                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| United      States                |   |                          | 756,933   |   |   |   | 73 | % |   |   | 835,459 |   |   |   | 74 | % |   |   | 949,522 |   |   |   | 80 | % |
| International                     |   |                          | 280,632   |   |   |   | 27 | % |   |   | 284,348 |   |   |   | 26 | % |   |   | 227,091 |   |   |   | 20 | % |
| Total                             |   | $                             | 1,037,565 |   |   |   | 100 | % |   |   | 1,119,807 |   |   |   | 100 | % |   | $ | 1,176,613 |   |   |   | 100 | % |

----

|   | ● | Property.  We      provide reinsurance coverage for damage to property and      crops.  Our catastrophe excess-of-loss reinsurance contracts      provide defined limits of liability, permitting us to quantify our      aggregate maximum loss exposure for various catastrophic      events.  Quantification of loss exposure is fundamental to our      ability to manage our loss exposure through geographical zone limits and      program limits. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Marine.  We      provide reinsurance coverage for marine and offshore energy insurance      programs.  Coverages reinsured include hull damage, protection      and indemnity, cargo damage, satellite damage and general marine      liability.  Within Marine, we also write commercial and general      aviation reinsurance. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Umbrella      Liability.  An umbrella policy is an excess insurance      policy that provides coverage, typically for general liability or      automobile liability, when claims, individually or in the aggregate,      exceed the limit of the original policy underlying the excess      policy. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | General and Product      Liability.  We provide reinsurance of various third party      liability coverages to both small and large insureds in both commercial      and personal lines predominantly on an excess-of-loss      basis.  This business includes commercial, farmowners and      homeowners policies as well as third party liability coverages such as      product liability. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Professional      Liability.  We write reinsurance contracts for      professional liability programs, including directors and officers,      employment practices, and errors and omissions for professionals such as      accountants, lawyers, medical professionals, architects and      engineers.  The underlying insurance products for these lines of      business are generally written on a claims made basis, which requires      notification of claims related to the liabilities insured under the policy      to be submitted to the insurer during a specified coverage      period. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Workers’      Compensation.  We reinsure workers’ compensation on a      catastrophic basis as well as on a per-claimant basis.  We may      provide full statutory coverage or coverage that is subject to specific      carve-outs.  Our exposure to workers’ compensation would      generally arise from a single occurrence, such as a factory explosion or      earthquake, involving claims from more than one  employer. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Casualty      Clash.  Casualty clash reinsurance covers losses arising      from a single event insured under more than one policy or where there are      multiple claimants under one policy.  This type of reinsurance      is analogous to property catastrophe reinsurance, but written for casualty      lines of business. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Automobile      Liability.  Automobile insurance policies provide first      party coverage for damage to the insured’s vehicle and third party      coverage for the insured’s liability to other parties for injuries and for      damage to their property due to the use of the insured      vehicle.  These insurance policies may also provide coverage for      uninsured motorists and medicalpayments. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Surety.  Our      surety business relates to the reinsurance of risks associated with      commercial and contract surety bonds issued to third parties to guarantee      the performance of an obligation by the principal under the      bond.  Commercial bonds guarantee the performance of compliance      obligations arising out of regulatory or statutory      requirements.  Contract bonds guarantee the performance of      contractual obligations between two parties and include payment and      performance bonds. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Trade      Credit.  Trade credit insurance is purchased by companies      to ensure that invoices for goods and services provided to their customers      are paid on time.  Our trade credit coverages provide      reinsurance for financial losses sustained through the failure of an      insured’s customers to pay for goods or services supplied to      them. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Political      Risk.  Political risk reinsurance covers the impairment      of assets as a result of expropriation, political violence, currency      inconvertibility, and the failure by sovereign countries to honor their      obligations.  The locations of risks that we reinsure include      Asia, Central and Eastern Europe, Latin America, Africa and the Middle      East. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Accident and      Health.  We provide accident and health reinsurance, most      often covering employer self-insured or fully insured health plans, on a      quota share and excess-of-loss basis.  We also write reinsurance      of student health insurance, sports disability, Medicare and Medicare      supplement and other forms of accident and health    insurance. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | ● | Finite quota      share.  Under finite quota share reinsurance contracts,      the reinsurer agrees to indemnify a ceding company for a percentage of its      losses up to an aggregate maximum or cap in return for a percentage of the      ceding company’s premium, less a ceding commission.  The      expected benefit to the ceding company provided by finite quota share      reinsurance is increased underwriting capacity of the ceding company and a      sharing of premiums and losses with the reinsurer.  These      reinsurance contracts often provide broad protection and may cover      multiple classes of a ceding company's business.  Unlike      traditional quota share reinsurance agreements, these contracts often      provide for profit commissions which take into account investment income      for purposes of calculating the reinsurer's profit on business      ceded.  Additionally, finite quota share reinsurance contracts      are often written on a funds withheld basis, meaning the parties agree      that funds that would normally be remitted to a reinsurer are withheld by      the ceding company.  The funds withheld are generally credited      with interest at a negotiated rate and the net balances are settled      generally after expiration at a date established in the      contract. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Multi-year      excess-of-loss.  These reinsurance contracts often      complement ceding companies’ traditional excess-of-loss reinsurance      programs.  This type of contract often carries an up-front      premium plus additional premiums which are dependent on the magnitude of      losses claimed by the ceding company under the contract.  The      expected benefit to the ceding company on multi-year excess-of-loss      reinsurance is that the ceding company has the ability to negotiate      specific terms and conditions that remain applicable over multiple years      of coverage.  These reinsurance contracts may cover multiple      classes of a ceding company's business and typically provide the benefit      of reducing the impact of large or catastrophic losses on a ceding      company's underwriting results.  In general, these reinsurance      contracts are designed so that the ceding company funds the expected level      of loss activity over the multi-year period.  The reinsurer      incorporates a profit margin to cover its costs and a charge for the risk      that actual losses assumed may be worse than expected.  The      payment of premiums based on the magnitude of losses claimed is intended      to benefit the ceding company by linking its own loss experience to the      actual cost of reinsurance over time.  The multiple year term      and premium structure of multi-year excess-of-loss reinsurance contracts      are not typically found in traditional reinsurance    contracts. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Whole account aggregate stop      loss.  Aggregate stop loss reinsurance contracts provide      broad protection against a wide range of contingencies that are difficult      to address with traditional reinsurance, including inadequate pricing by a      ceding company or higher frequency of claims than the ceding company      expected.  The reinsurer on a whole account aggregate stop loss      contract agrees to indemnify a ceding company for aggregate losses in      excess of a deductible specified in the contract.  These      contracts can be offered on a single or multi-year basis, and may provide      catastrophic and attritional loss protection.  The benefit of      whole account aggregate stop loss contracts to ceding companies is that      such contracts provide the broadest possible protection of a ceding      company's underwriting results which is not generally available in the      traditional reinsurance market.  Unlike traditional reinsurance      contracts, these contracts often contain sub-limits of coverage for losses      on certain classes of business or exposures.  These reinsurance      contracts are often written on a funds withheld basis.  In      addition, these reinsurance contracts often include provisions for profit      commissions which take into account investment income for purposes of      calculating the reinsurer's profit on business  ceded. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                                       |   | 2008   |      |   | 2007   |   |      | 2006   |   |
|------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
|                                                       |   |   |      |   |   |   |      |   |   |
| Net      unpaid losses and LAE as of January 1,            |   | $      | 2,342,185 |   |   |   | 2,326,227 |   |   | $ | 2,268,655 |   |
|                                                       |   |   |      |   |   |   |      |   |   |   |   |   |
| Net      incurred losses and LAE related to:               |   |   |      |   |   |   |      |   |   |   |   |   |
| Current      year                                          |   |   | 878,169   |   |   |   | 745,865   |   |   |   | 811,250 |   |
| Prior      years                                           |   |   | (159,936  | )      |   |   | (90,378   | )      |   |   | (50,648 | ) |
| Net      incurred losses and LAE                           |   |   | 718,233   |   |   |   | 655,487   |   |   |   | 760,602 |   |
|                                                       |   |   |      |   |   |   |      |   |   |   |   |   |
| Net      paid losses and LAE:                              |   |   |      |   |   |   |      |   |   |   |   |   |
| Current      year                                          |   |   | 148,355   |   |   |   | 73,402    |   |   |   | 96,112 |   |
| Prior      years                                           |   |   | 433,961   |   |   |   | 578,611   |   |   |   | 624,477 |   |
| Net      paid losses and LAE                               |   |   | 582,316   |   |   |   | 652,013   |   |   |   | 720,589 |   |
|                                                       |   |   |      |   |   |   |      |   |   |   |   |   |
| Net      effects of foreign currency exchange rate changes |   |   | (26,057   | )      |   |   | 12,484    |   |   |   | 17,559 |   |
|                                                       |   |   |      |   |   |   |      |   |   |   |   |   |
| Net      unpaid losses and LAE as of December 31,          |   |   | 2,452,045 |   |   |   | 2,342,185 |   |   |   | 2,326,227 |   |
|                                                       |   |   |      |   |   |   |      |   |   |   |   |   |
| Reinsurance      recoverable on unpaid losses and LAE      |   |   | 11,461    |   |   |   | 18,853    |   |   |   | 42,255 |   |
|                                                       |   |   |      |   |   |   |      |   |   |   |   |   |
| Gross      unpaid losses and LAE as of December 31,        |   | $      | 2,463,506 |   |   |   | 2,361,038 |   |   | $ | 2,368,482 |   |

The net favorable loss development in 2008, 2007 and 2006related to prior years included $167,246,000, $81,166,000 and $60,746,000,respectively, of net favorable loss development as a result of favorablemovement in ultimate loss ratios.  The net favorable loss developmentin 2008, 2007 and 2006 related to prior years also included changes in netincurred losses and LAE associated with changes in estimates of premiums and thepatterns of their earnings.  The net increase (decrease) of losses andLAE related to prior accident years arising from changes in premium estimateswere $7,310,000, ($9,212,000) and $10,098,000 in 2008, 2007 and 2006,respectively.  The effect on net income of changes in premiumestimates, after considering corresponding changes in related losses, LAE andacquisition expenses, was not significant.

----

The net favorable loss development related to prior yearsemerged from all segments and was related to both catastrophe andnon-catastrophe losses.  The net favorable loss development in 2008arose in all segments.  The Property and Marine segment had$71,220,000 of net favorable loss development, of which $18,834,000 related tomajor catastrophes in prior years.  The remainder of the net favorableloss development is attributable to non-major catastrophe, property risk andcrop classes of business.  The Casualty segment had $73,242,000 of netfavorable loss development, of which $63,341,000 was from certain long-tailedcasualty classes.  The majority of the long-tailed casualty netfavorable loss development was from the claims made classes.  TheFinite Risk segment experienced net favorable loss development of $22,784,000which was substantially all offset by adjustments to commissions.

The most significant portion of net favorable loss developmentin 2007 was in the Property and Marine segment and in certain classes in theCasualty segment.  Net favorable loss development in the Property andMarine segment in 2007 included $17,164,000 related to prior years’ majorcatastrophes.  Net favorable loss development in 2007 included$15,474,000 from certain long-tailed casualty classes.  During 2006,the lines that produced net favorable loss development were primarily propertycoverages in both the Property and Marine and Finite Risk segments as well ascertain classes within the Casualty segment with short loss developmentperiods.  The net favorable loss development in 2008, 2007 and 2006from all segments resulted from reported loss experience that was less thanexpected and that gained sufficient credibility in the current period to reduceestimated ultimate losses.

|                                                           |   | 2002   |    |   | 2003   |   |    | 2004   |   |   | 2005      |   |   | 2006   |      |   | 2007   |   |      | 2008   |   |
|----------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
|                                                           |   |   |    |   |   |   |    |   |   |   |      |   |   |   |      |   |   |   |      |   |   |
| Net      unpaid losses and LAE as of December 31,              |   | $      | 281,659 |   |   |   | 731,918 |   |   |   | 1,379,227 |   |   |   | 2,268,655 |   |   |   | 2,326,227 |   |   |   | 2,342,185 |   |   | $ | 2,452,045 |   |
| Net      unpaid losses and LAE re-estimated as of:             |   |   |    |   |   |   |    |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |   |   |
| One      year later                                            |   |   | 224,693 |   |   |   | 649,902 |   |   |   | 1,306,708 |   |   |   | 2,215,635 |   |   |   | 2,235,849 |   |   |   | 2,182,249 |   |   |   |   |   |
| Two      years later                                           |   |   | 194,422 |   |   |   | 604,891 |   |   |   | 1,277,627 |   |   |   | 2,149,153 |   |   |   | 2,129,932 |   |   |   |   |   |   |   |   |   |
| Three      years later                                         |   |   | 176,884 |   |   |   | 603,293 |   |   |   | 1,254,213 |   |   |   | 2,072,604 |   |   |   |      |   |   |   |   |   |   |   |   |   |
| Four      years later                                          |   |   | 175,683 |   |   |   | 601,719 |   |   |   | 1,210,091 |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |   |   |
| Five      years later                                          |   |   | 173,546 |   |   |   | 589,028 |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |   |   |
| Six      years later                                           |   |   | 173,601 |   |   |   |    |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |   |   |
| Net      cumulative redundancy                                 |   |   | 108,058 |   |   |   | 142,890 |   |   |   | 169,136   |   |   |   | 196,051   |   |   |   | 196,295   |   |   |   | 159,936 |   |   |   |   |   |
| Adjustment      for foreign currency exchange                  |   |   | 15,318  |   |   |   | 6,047   |   |   |   | (8,929    | )      |   |   | 5,975     |   |   |   | 1,992     |   |   |   | 5,639 |   |   |   |   |   |
| Cumulative      redundancy excluding foreign currency exchange |   |   | 123,376 |   |   |   | 148,937 |   |   |   | 160,207   |   |   |   | 202,026   |   |   |   | 198,287   |   |   |   | 165,575 |   |   |   |   |   |
|                                                           |   |   |    |   |   |   |    |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |   |   |
| Net      cumulative paid losses and LAE as of:                 |   |   |    |   |   |   |    |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |   |   |
| One      year later                                            |   |   | 41,709  |   |   |   | 205,889 |   |   |   | 388,700   |   |   |   | 624,006   |   |   |   | 577,739   |   |   |   | 433,961 |   |   |   |   |   |
| Two      years later                                           |   |   | 62,604  |   |   |   | 265,376 |   |   |   | 536,351   |   |   |   | 1,065,607 |   |   |   | 873,487   |   |   |   |   |   |   |   |   |   |
| Three      years later                                         |   |   | 73,908  |   |   |   | 320,399 |   |   |   | 696,809   |   |   |   | 1,285,151 |   |   |   |      |   |   |   |   |   |   |   |   |   |
| Four      years later                                          |   |   | 90,982  |   |   |   | 373,081 |   |   |   | 799,763   |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |   |   |
| Five      years later                                          |   |   | 107,425 |   |   |   | 416,902 |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |   |   |
| Six      years later                                           |   |   | 125,264 |   |   |   |    |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |   |   |
|                                                           |   |   |    |   |   |   |    |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |   |   |
| Gross      liability-end of year                               |   |   | 281,659 |   |   |   | 736,934 |   |   |   | 1,380,955 |   |   |   | 2,323,990 |   |   |   | 2,368,482 |   |   |   | 2,361,038 |   |   |   | 2,463,506 |   |
| Reinsurance      recoverable on unpaid losses and LAE          |   |   | – |   |   |   | 5,016   |   |   |   | 1,728     |   |   |   | 55,335    |   |   |   | 42,255    |   |   |   | 18,853 |   |   |   | 11,461 |   |
| Net      liability-end of year                                 |   |   | 281,659 |   |   |   | 731,918 |   |   |   | 1,379,227 |   |   |   | 2,268,655 |   |   |   | 2,326,227 |   |   |   | 2,342,185 |   |   | $ | 2,452,045 |   |
|                                                           |   |   |    |   |   |   |    |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |   |   |
| Gross      liability-re-estimated                              |   |   | 173,601 |   |   |   | 595,540 |   |   |   | 1,214,156 |   |   |   | 2,126,276 |   |   |   | 2,163,438 |   |   |   | 2,192,963 |   |   |   |   |   |
| Gross      cumulative redundancy                               |   | $      | 108,058 |   |   |   | 141,394 |   |   |   | 166,799   |   |   |   | 197,714   |   |   |   | 205,044   |   |   | $ | 168,075 |   |   |   |   |   |

----

|                                                 |   | December      31, |      |
|------------------------------------------------------|--------|-------------------|-----------|
|                                                 |   | 2008              |      |   | 2007 |   |
|                                                 |   |              |      |   |   |   |
| U.S.      Government                                 |   | $                 | 201,024   |   |   | $ | 96,752 |   |
| U.S.      Government agencies                        |   |              | 811,489   |   |   |   | 579,766 |   |
| Corporate      bonds                                 |   |              | 694,653   |   |   |   | 821,735 |   |
| Mortgage-backed      and asset-backed securities     |   |              | 1,084,958 |   |   |   | 1,388,242 |   |
| Municipal      bonds                                 |   |              | 393,484   |   |   |   | 282,961 |   |
| Non-U.S. governments      and states            |   |              | 183,433   |   |   |   | 192,285 |   |
|                                                 |   |              |      |   |   |   |   |   |
| Total      fixed maturity securities                 |   |              | 3,369,041 |   |   |   | 3,361,741 |   |
| Preferred      stocks                                |   |              | 2,845     |   |   |   | 9,607 |   |
| Short-term      investments                          |   |              | 75,036    |   |   |   | 13,876 |   |
|                                                 |   |              |      |   |   |   |   |   |
| Total      investments                               |   |              | 3,446,922 |   |   |   | 3,385,224 |   |
| Cash      and cash equivalents                       |   |              | 813,017   |   |   |   | 1,076,279 |   |
|                                                 |   |              |      |   |   |   |   |   |
| Total      investments and cash and cash equivalents |   | $                 | 4,259,939 |   |   | $ | 4,461,503 |   |

|                 |   |   | December      31 |      |
|----------------------|--------|--------|------------------|-----------|
|                 |   |   | 2008             |      |   | 2007 |   |
| Moody’s Rating |   |   | Fair      Value  |      |   | %      of Total |   |   | Fair      Value |   |   | %      of Total |   |
|                 |   |   |             |      |   |   |   |   |   |   |   |   |   |
| Aaa                  |   |   | $                | 2,299,184 |   |   |   | 68.2 | % |   |   | 2,347,539 |   |   |   | 69.7 | % |
| Aa                   |   |   |             | 486,582   |   |   |   | 14.4 | % |   |   | 503,698 |   |   |   | 14.9 | % |
| A                    |   |   |             |      | 439,255 |   |   |   | 13.0 | % |   |   | 393,104 |   |   |   | 11.7 | % |
| Baa                  |   |   |             | 143,518   |   |   |   | 4.3 | % |   |   | 126,149 |   |   |   | 3.7 | % |
| Below      Baa       |   |   |             | 3,347     |   |   |   | 0.1 | % |   |   | 858 |   |   |   | 0.0 | % |
| Total                |   |   | $                | 3,371,886 |   |   |   | 100.0 | % |   |   | 3,371,348 |   |   |   | 100.0 | % |
|                 |   |   |             |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

----

----

|   | (1) | all      or any part of the long-term business, other than long-term business that      is reinsurance business, may be transferred only with and in accordance      with the sanction of the applicable Bermuda court;  and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | an      insurer or reinsurer carrying on long-term business may only be wound-up      or liquidated by order of the applicable Bermuda court, and this may      increase the length of time and costs incurred in the winding-up of      Platinum Bermuda when compared with a voluntary winding-up or      liquidation. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (1) | 10%      of statutory policyholders’ surplus (as determined under statutory      accounting principles) as of December 31 of the prior year;      or |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | net      investment income excluding realized capital gains (as determined under      statutory accounting principles) for the twelve-month period ending on      December 31 of the prior year and pro rata distribution of any class      of securities of Platinum US, plus any amounts of net investment income      (excluding realized capital gains) in the three calendar years prior to      the preceding year which have not been  distributed. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|  Item 1A. | Risk      Factors |
|----------------|-------------------|

----

----

----

----

----

----

----

----

|  Item 1B. | Unresolved      Staff Comments |
|----------------|--------------------------------|

|  Item 2. | Properties |
|---------------|------------|

|  Item 3. | Legal      Proceedings |
|---------------|------------------------|

|  Item 4. | Submission      of Matters to a Vote of SecurityHolders |
|---------------|---------------------------------------------------------|

|  Item 5. | Market      For Registrant’s Common Equity, Related Shareholder Matters and Issuer      Purchases of Equity Securities |
|---------------|------------------------------------------------------------------------------------------------------------------------------|

|                |   | Price      Range ofCommon      Shares |   |
|---------------------|--------|---------------------------------------|--------|
| Year                |   | High                                  |   |   | Low |   |
|                |   |                                  |   |   |   |   |
| 2008:               |   |                                  |   |   |   |   |
| First      Quarter  |   | $                                     | 36.60  |   |   | $ | 31.70 |   |
| Second      Quarter |   |                                  | 37.00  |   |   |   | 32.58 |   |
| Third      Quarter  |   |                                  | 38.76  |   |   |   | 31.02 |   |
| Fourth      Quarter |   |                                  | 36.16  |   |   |   | 21.38 |   |
|                |   |                                  |   |   |   |   |   |   |
| 2007:               |   |                                  |   |   |   |   |   |   |
| First      Quarter  |   | $                                     | 32.59  |   |   | $ | 29.81 |   |
| Second      Quarter |   |                                  | 35.71  |   |   |   | 31.63 |   |
| Third      Quarter  |   |                                  | 36.39  |   |   |   | 31.02 |   |
| Fourth      Quarter |   |                                  | 38.07  |   |   |   | 33.98 |   |

----

| Period                                               |   | (a)Total      Number of Shares Purchased |    |   | (b)Average      Price paid per Share |   |    | (c)Total      Number of Shares Purchased as Part of a Publicly Announced Program      * |   |   | (d)Maximum      Dollar Value of Shares that May Yet Be Purchased Under the      Program |   |
|------------------------------------------------------|--------|------------------------------------------|---------|--------|--------------------------------------|--------|---------|-----------------------------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------------------|--------|
|                                                 |   |                                     |    |   |                                 |   |    |                                                                                    |   |   |                                                                                    |   |
| October      1, 2008 – October 31, 2008        |   |                                     | 154,400 |   |                                 | $      | 27.43   |                                                                                    |   |   | 154,400                                                                                 |   |   | $ | 245,765,000 |   |
| November      1, 2008 – November 30, 2008      |   |                                     | 72,800  |   |                                 |   | 26.47   |                                                                                    |   |   | 72,800                                                                                  |   |   |   | 243,838,000 |   |
| December      1, 2008 – December 31, 2008 |   |                                     | – |   |                                 |   | – |                                                                                    |   |   | –                                                                                 |   |   |   | 243,838,000 |   |
| Total                                                |   |                                     | 227,200 |   |                                 | $      | 27.12   |                                                                                    |   |   | 227,200                                                                                 |   |   | $ | 243,838,000 |   |

----

|                                           |   | Indexed      Returns *Years      Ended December 31, |   |
|------------------------------------------------|--------|----------------------------------------------------------|--------|
|                                           |   | 2004                                                     |   |   | 2005 |   |   | 2006 |   |   | 2007 |   |   | 2008 |   |
|                                           |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Platinum                                       |   | $                                                        | 104.77 |   |   |   | 105.75 |   |   |   | 106.46 |   |   |   | 123.50 |   |   |   | 126.49 |   |
| S&P      500 Index                         |   |                                                     | 110.88 |   |   |   | 116.33 |   |   |   | 134.70 |   |   |   | 142.10 |   |   |   | 89.53 |   |
| S&P      500 Property & Casualty Index |   |                                                     | 110.42 |   |   |   | 127.11 |   |   |   | 143.47 |   |   |   | 123.44 |   |   |   | 87.13 |   |

----

|        Item      6. | Selected      Financial Data |
|--------------------------|------------------------------|

Five-Year Summary of Selected FinancialData

|                                             |   | As      of and for the years ended December 31, |      |
|--------------------------------------------------|--------|------------------------------------------------------|-----------|
|                                             |   | 2008                                                 |      |   | 2007 |   |   | 2006 |   |   | 2005 |   |   | 2004 |   |
|                                             |   |                                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |
| Statement of Operations    Data:                 |   |                                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      premiums written                        |   | $                                                    | 1,037,565 |   |   |   | 1,119,807 |   |   |   | 1,176,613 |   |   |   | 1,717,722 |   |   | $ | 1,646,013 |   |
| Net      premiums earned                         |   |                                                 | 1,114,796 |   |   |   | 1,173,088 |   |   |   | 1,336,701 |   |   |   | 1,714,723 |   |   |   | 1,447,935 |   |
| Net      investment income                       |   |                                                 | 186,574   |   |   |   | 214,222 |   |   |   | 187,987 |   |   |   | 129,445 |   |   |   | 84,532 |   |
| Net      realized investment gains (losses)      |   |                                                 | 26,568    |   |   |   | (1,222 | ) |   |   | (1,131 | ) |   |   | (3,144 | ) |   |   | 2,991 |   |
| Net      losses and LAE                          |   |                                                 | 718,233   |   |   |   | 655,487 |   |   |   | 760,602 |   |   |   | 1,505,425 |   |   |   | 1,019,804 |   |
| Underwriting      expenses                       |   |                                                 | 306,459   |   |   |   | 294,642 |   |   |   | 357,219 |   |   |   | 458,804 |   |   |   | 380,958 |   |
| Net      income (loss)                           |   |                                                 | 226,240   |   |   |   | 356,978 |   |   |   | 329,657 |   |   |   | (137,487 | ) |   |   | 84,783 |   |
|                                             |   |                                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic      earnings (loss) per common      share |   |                                                 | 4.38      |   |   |   | 5.91 |   |   |   | 5.38 |   |   |   | (3.01 | ) |   |   | 1.96 |   |
| Diluted      earnings (loss) per common share    |   |                                                 | 3.98      |   |   |   | 5.38 |   |   |   | 4.96 |   |   |   | (3.01 | ) |   |   | 1.81 |   |
| Dividends      declared per common      share    |   | $                                                    | 0.32      |   |   |   | 0.32 |   |   |   | 0.32 |   |   |   | 0.32 |   |   | $ | 0.32 |   |
|                                             |   |                                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance Sheet Data:                              |   |                                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      investments and cash                  |   | $                                                    | 4,259,939 |   |   |   | 4,461,503 |   |   |   | 4,228,937 |   |   |   | 3,830,428 |   |   | $ | 2,456,868 |   |
| Premiums      receivable                         |   |                                                 | 307,539   |   |   |   | 244,360 |   |   |   | 377,183 |   |   |   | 567,449 |   |   |   | 580,048 |   |
| Total      assets                                |   |                                                 | 4,927,163 |   |   |   | 5,078,750 |   |   |   | 5,093,567 |   |   |   | 5,154,375 |   |   |   | 3,421,995 |   |
| Unpaid      losses and LAE                       |   |                                                 | 2,463,506 |   |   |   | 2,361,038 |   |   |   | 2,368,482 |   |   |   | 2,323,990 |   |   |   | 1,380,955 |   |
| Unearned      premiums                           |   |                                                 | 218,890   |   |   |   | 298,498 |   |   |   | 349,792 |   |   |   | 502,018 |   |   |   | 502,423 |   |
| Debt      obligations                            |   |                                                 | 250,000   |   |   |   | 250,000 |   |   |   | 292,840 |   |   |   | 292,840 |   |   |   | 137,500 |   |
| Shareholders’      equity                  |   |                                                 | 1,809,397 |   |   |   | 1,998,377 |   |   |   | 1,858,061 |   |   |   | 1,540,249 |   |   |   | 1,133,003 |   |
|                                             |   |                                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Book      value per common share                 |   | $                                                    | 34.58     |   |   |   | 34.04 |   |   |   | 28.33 |   |   |   | 23.22 |   |   | $ | 26.30 |   |

|  Item 7. | Management's      Discussion and Analysis of Financial Condition and Results of      Operations |
|---------------|-------------------------------------------------------------------------------------------------|

Overview

----

Outlook

----

|                               |   | December      31, |    |
|------------------------------------|--------|-------------------|---------|
|                               |   | 2008              |    |   | 2007 |   |
|                               |   |              |    |   |   |   |
| Estimated      premiums receivable |   | $                 | 269,714 |   |   | $ | 195,890 |   |
| Reported      premiums receivable  |   |              | 37,825  |   |   |   | 48,470 |   |
| Total      premiums receivable     |   | $                 | 307,539 |   |   | $ | 244,360 |   |

----

xpenses

|                             |   | Propertyand      Marine |    |   | Casualty |   |      | Finite      Risk |   |   | Total   |   |
|----------------------------------|--------|-------------------------|---------|--------|----------|--------|-----------|------------------|--------|--------|---------|--------|
|                             |   |                    |    |   |     |   |      |             |   |   |    |   |
| December 31, 2008           |   |                    |    |   |     |   |      |             |   |   |    |   |
| Case      reserves               |   | $                       | 255,468 |   |     |   | 364,321   |             |   |   | 56,638  |   |   | $ | 676,427 |   |
| Additional      case reserves    |   |                    | 4,591   |   |     |   | 25,600    |             |   |   | – |   |   |   | 30,191 |   |
| IBNR                             |   |                    | 281,573 |   |     |   | 1,378,000 |             |   |   | 97,315  |   |   |   | 1,756,888 |   |
| Total      unpaid losses and LAE |   | $                       | 541,632 |   |     |   | 1,767,921 |             |   |   | 153,953 |   |   | $ | 2,463,506 |   |
|                             |   |                    |    |   |     |   |      |             |   |   |    |   |   |   |   |   |
| December 31, 2007           |   |                    |    |   |     |   |      |             |   |   |    |   |   |   |   |   |
| Case      reserves               |   | $                       | 235,673 |   |     |   | 331,931   |             |   |   | 70,873  |   |   | $ | 638,477 |   |
| Additional      case reserves    |   |                    | 778     |   |     |   | 21,329    |             |   |   | – |   |   |   | 22,107 |   |
| IBNR                             |   |                    | 212,446 |   |     |   | 1,347,337 |             |   |   | 140,671 |   |   |   | 1,700,454 |   |
| Total      unpaid losses and LAE |   | $                       | 448,897 |   |     |   | 1,700,597 |             |   |   | 211,544 |   |   | $ | 2,361,038 |   |

----

----

----

|                                                    |   | Paid      % |   |   | Reported      % |   |
|---------------------------------------------------------|--------|-------------|--------|--------|-----------------|--------|
|                                                    |   |        |   |   |            |   |
| Hurricane      Ike losses as of December 31, 2008  |   |        | 36     | %      |            |   | 47 | % |
|                                                    |   |        |   |   |            |   |   |   |
| 2005      hurricane losses as of December 31, 2005 |   |        | 21     | %      |            |   | 48 | % |
|                                                    |   |        |   |   |            |   |   |   |
| 2004      hurricane losses as of December 31, 2004 |   |        | 29     | %      |            |   | 58 | % |

----

|                                                                                |   | 2008   |    |   | 2007   |   |    | Decrease |   |
|-------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|----------|--------|
|                                                                                |   |   |    |   |   |   |    |     |   |
| Net      income                                                                     |   | $      | 226,240 |   |   |   | 356,978 |     |   | $ | 130,738 |   |
|                                                                                |   |   |    |   |   |   |    |     |   |   |   |   |
| Weighted      average shares outstanding for diluted earnings per common      share |   |   | 56,855  |   |   |   | 66,404  |     |   |   | 9,549 |   |
| Diluted      earnings per common share                                              |   | $      | 3.98    |   |   |   | 5.38    |     |   | $ | 1.40 |   |

----

|                                                 |   | 2008   |    |   | 2007   |   |    | Increase(decrease) |   |
|------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------------------|--------|
|                                                 |   |   |    |   |   |   |    |               |   |
| Gross      premiums written                          |   | $      | 622,171 |   |   |   | 527,142 |               |   | $ | 95,029 |   |
| Ceded      premiums written                          |   |   | 29,084  |   |   |   | 22,132  |               |   |   | 6,952 |   |
| Net      premiums written                            |   |   | 593,087 |   |   |   | 505,010 |               |   |   | 88,077 |   |
| Net      premiums earned                             |   |   | 599,110 |   |   |   | 502,291 |               |   |   | 96,819 |   |
| Net      losses and LAE                              |   |   | 397,200 |   |   |   | 195,398 |               |   |   | 201,802 |   |
| Net      acquisition expenses                        |   |   | 90,816  |   |   |   | 68,351  |               |   |   | 22,465 |   |
| Other      underwriting expenses                     |   |   | 38,492  |   |   |   | 42,422  |               |   |   | (3,930 | ) |
| Property      and Marine segment underwriting income |   | $      | 72,602  |   |   |   | 196,120 |               |   | $ | (123,518 | ) |
|                                                 |   |   |    |   |   |   |    |               |   |   |   |   |
| Ratios:                                              |   |   |    |   |   |   |    |               |   |   |   |   |
| Net      loss and LAE                                |   |   | 66.3    | %      |   |   | 38.9    | %                  |   | 27.4      points |   |
| Net      acquisition expense                         |   |   | 15.2    | %      |   |   | 13.6    | %                  |   | 1.6      points |   |
| Other      underwriting expense                      |   |   | 6.4     | %      |   |   | 8.4     | %                  |   | (2.0)      points |   |
| Combined                                             |   |   | 87.9    | %      |   |   | 60.9    | %                  |   | 27.0      points |   |

----

|                                      |   | 2008   |    |   | 2007   |   |    | Increase      (decrease) |   |
|-------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------------------------|--------|
|                                      |   |   |    |   |   |   |    |                     |   |
| Gross      premiums written               |   | $      | 430,051 |   |   |   | 584,911 |                     |   | $ | (154,860 | ) |
| Ceded      premiums written               |   |   | (33     | )      |   |   | 306     |                     |   |   | (339 | ) |
| Net      premiums written                 |   |   | 430,084 |   |   |   | 584,605 |                     |   |   | (154,521 | ) |
| Net      premiums earned                  |   |   | 503,300 |   |   |   | 637,856 |                     |   |   | (134,556 | ) |
| Net      losses and LAE                   |   |   | 337,051 |   |   |   | 444,701 |                     |   |   | (107,650 | ) |
| Net      acquisition expenses             |   |   | 125,934 |   |   |   | 145,969 |                     |   |   | (20,035 | ) |
| Other      underwriting expenses          |   |   | 23,982  |   |   |   | 29,194  |                     |   |   | (5,212 | ) |
| Casualty      segment underwriting income |   | $      | 16,333  |   |   |   | 17,992  |                     |   | $ | (1,659 | ) |
|                                      |   |   |    |   |   |   |    |                     |   |   |   |   |
| Ratios:                                   |   |   |    |   |   |   |    |                     |   |   |   |   |
| Net      loss and LAE                     |   |   | 67.0    | %      |   |   | 69.7    | %                        |   | (2.7)      points |   |
| Net      acquisition expense              |   |   | 25.0    | %      |   |   | 22.9    | %                        |   | 2.1      points |   |
| Other      underwriting expense           |   |   | 4.8     | %      |   |   | 4.6     | %                        |   | 0.2      points |   |
| Combined                                  |   |   | 96.8    | %      |   |   | 97.2    | %                        |   | (0.4)      points |   |

----

|                                              |   | 2008   |    |   | 2007   |   |   | Increase      (decrease) |   |
|---------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------------------------|--------|
|                                              |   |   |    |   |   |   |   |                     |   |
| Gross      premiums written                       |   | $      | 14,394  |   |   |   | 28,250 |                     |   | $ | (13,856 | ) |
| Ceded      premiums written                       |   |   | – |   |   |   | (1,942 | )                        |   |   | 1,942 |   |
| Net      premiums written                         |   |   | 14,394  |   |   |   | 30,192 |                     |   |   | (15,798 | ) |
| Net      premiums earned                          |   |   | 12,386  |   |   |   | 32,941 |                     |   |   | (20,555 | ) |
| Net      losses and LAE                           |   |   | (16,018 | )      |   |   | 15,388 |                     |   |   |   |   |
| Net      acquisition expenses                     |   |   | 25,965  |   |   |   | 6,010  |                     |   |   |   |   |
| Net      losses, LAE and acquisition expenses     |   |   | 9,947   |   |   |   | 21,398 |                     |   |   | (11,451 | ) |
| Other      underwriting expenses                  |   |   | 1,270   |   |   |   | 2,696  |                     |   |   | (1,426 | ) |
| Finite      Risk segment underwriting income      |   | $      | 1,169   |   |   |   | 8,847  |                     |   | $ | (7,678 | ) |
|                                              |   |   |    |   |   |   |   |                     |   |   |   |   |
| Ratios:                                           |   |   |    |   |   |   |   |                     |   |   |   |   |
| Net      loss and LAE                             |   |   | (129.3  | %)     |   |   | 46.7   | %                        |   |   |   |   |
| Net      acquisition expense                      |   |   | 209.6   | %      |   |   | 18.2   | %                        |   |   |   |   |
| Net      loss, LAE and acquisition expense ratios |   |   | 80.3    | %      |   |   | 65.0   | %                        |   | 15.3      points |   |
| Other      underwriting expense                   |   |   | 10.3    | %      |   |   | 8.2    | %                        |   | 2.1      points |   |
| Combined                                          |   |   | 90.6    | %      |   |   | 73.2   | %                        |   | 17.4      points |   |

----

|                                                  |   | 2008   |    |   | 2007   |   |   | Favorable      (Unfavorable) change |   |
|-------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|-------------------------------------|--------|
|                                                  |   |   |    |   |   |   |   |                                |   |
| Net      gains (losses) on the sale of investments    |   | $      | 47,573  |   |   |   | (1,806 | )                                   |   | $ | 49,379 |   |
| Mark-to-market      adjustments on trading securities |   |   | 9,681   |   |   |   | 1,393  |                                |   |   | 8,288 |   |
| Other-than-temporary      impairments                 |   |   | (30,686 | )      |   |   | (809   | )                                   |   |   | (29,877 | ) |
| Net      realized investment gains (losses)           |   | $      | 26,568  |   |   |   | (1,222 | )                                   |   | $ | 27,790 |   |

|                     |   | 2008   |   |   | 2007   |   |   | Decrease |   |
|--------------------------|--------|--------|--------|--------|--------|--------|--------|----------|--------|
|                     |   |   |   |   |   |   |   |     |   |
| Income      taxes        |   | $      | 12,999 |   |   |   | 23,825 |     |   | $ | 10,826 |   |
| Effective      tax rates |   |   | 5.4    | %      |   |   | 6.3    | %        |   | 0.9      points |   |

----

|                                                                                |   | 2007   |    |   | 2006   |   |    | Increase(decrease) |   |
|-------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------------------|--------|
|                                                                                |   |   |    |   |   |   |    |               |   |
| Net      income                                                                     |   | $      | 356,978 |   |   |   | 329,657 |               |   | $ | 27,321 |   |
|                                                                                |   |   |    |   |   |   |    |               |   |   |   |   |
| Weighted      average shares outstanding for diluted earnings per common      share |   |   | 66,404  |   |   |   | 66,498  |               |   |   | (94 | ) |
| Diluted      earnings per common share                                              |   | $      | 5.38    |   |   |   | 4.96    |               |   | $ | 0.42 |   |

|                                                 |   | 2007   |    |   | 2006   |   |    | Increase(decrease) |   |
|------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------------------|--------|
|                                                 |   |   |    |   |   |   |    |               |   |
| Gross      premiums written                          |   | $      | 527,142 |   |   |   | 514,316 |               |   | $ | 12,826 |   |
| Ceded      premiums written                          |   |   | 22,132  |   |   |   | 89,387  |               |   |   | (67,255 | ) |
| Net      premiums written                            |   |   | 505,010 |   |   |   | 424,929 |               |   |   | 80,081 |   |
| Net      premiums earned                             |   |   | 502,291 |   |   |   | 448,959 |               |   |   | 53,332 |   |
| Net      losses and LAE                              |   |   | 195,398 |   |   |   | 145,900 |               |   |   | 49,498 |   |
| Net      acquisition expenses                        |   |   | 68,351  |   |   |   | 70,905  |               |   |   | (2,554 | ) |
| Other      underwriting expenses                     |   |   | 42,422  |   |   |   | 39,887  |               |   |   | 2,535 |   |
| Property      and Marine segment underwriting income |   | $      | 196,120 |   |   |   | 192,267 |               |   | $ | 3,853 |   |
|                                                 |   |   |    |   |   |   |    |               |   |   |   |   |
| Ratios:                                              |   |   |    |   |   |   |    |               |   |   |   |   |
| Net      loss and LAE                                |   |   | 38.9    | %      |   |   | 32.5    | %                  |   | 6.4      points |   |
| Net      acquisition expense                         |   |   | 13.6    | %      |   |   | 15.8    | %                  |   | (2.2)      points |   |
| Other      underwriting expense                      |   |   | 8.4     | %      |   |   | 8.9     | %                  |   | (0.5)      points |   |
| Combined                                             |   |   | 60.9    | %      |   |   | 57.2    | %                  |   | 3.7      points |   |

----

|                                      |   | 2007   |    |   | 2006   |   |    | Increase(decrease) |   |
|-------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------------------|--------|
|                                      |   |   |    |   |   |   |    |               |   |
| Gross      premiums written               |   | $      | 584,911 |   |   |   | 757,749 |               |   | $ | (172,838 | ) |
| Ceded      premiums written               |   |   | 306     |   |   |   | 74      |               |   |   | 232 |   |
| Net      premiums written                 |   |   | 584,605 |   |   |   | 757,675 |               |   |   | (173,070 | ) |
| Net      premiums earned                  |   |   | 637,856 |   |   |   | 764,341 |               |   |   | (126,485 | ) |
| Net      losses and LAE                   |   |   | 444,701 |   |   |   | 522,815 |               |   |   | (78,114 | ) |
| Net      acquisition expenses             |   |   | 145,969 |   |   |   | 188,717 |               |   |   | (42,748 | ) |
| Other      underwriting expenses          |   |   | 29,194  |   |   |   | 27,022  |               |   |   | 2,172 |   |
| Casualty      segment underwriting income |   | $      | 17,992  |   |   |   | 25,787  |               |   | $ | (7,795 | ) |
|                                      |   |   |    |   |   |   |    |               |   |   |   |   |
| Ratios:                                   |   |   |    |   |   |   |    |               |   |   |   |   |
| Net      loss and LAE                     |   |   | 69.7    | %      |   |   | 68.4    | %                  |   | 1.3      points |   |
| Net      acquisition expense              |   |   | 22.9    | %      |   |   | 24.7    | %                  |   | (1.8)      points |   |
| Other      underwriting expense           |   |   | 4.6     | %      |   |   | 3.5     | %                  |   | 1.1      points |   |
| Combined                                  |   |   | 97.2    | %      |   |   | 96.6    | %                  |   | 0.6      points |   |

----

|                                              |   | 2007   |   |   | 2006   |   |    | Increase      (decrease) |   |
|---------------------------------------------------|--------|--------|--------|--------|--------|--------|---------|--------------------------|--------|
|                                              |   |   |   |   |   |   |    |                     |   |
| Gross      premiums written                       |   | $      | 28,250 |   |   |   | 3,135   |                     |   | $ | 25,115 |   |
| Ceded      premiums written                       |   |   | (1,942 | )      |   |   | 9,126   |                     |   |   | (11,068 | ) |
| Net      premiums written                         |   |   | 30,192 |   |   |   | (5,991  | )                        |   |   | 36,183 |   |
| Net      premiums earned                          |   |   | 32,941 |   |   |   | 123,401 |                     |   |   | (90,460 | ) |
| Net      losses and LAE                           |   |   | 15,388 |   |   |   | 91,887  |                     |   |   |   |   |
| Net      acquisition expenses                     |   |   | 6,010  |   |   |   | 26,301  |                     |   |   |   |   |
| Net      losses, LAE and acquisition expenses     |   |   | 21,398 |   |   |   | 118,188 |                     |   |   | (96,790 | ) |
| Other      underwriting expenses                  |   |   | 2,696  |   |   |   | 4,387   |                     |   |   | (1,691 | ) |
| Finite      Risk segment underwriting income      |   | $      | 8,847  |   |   |   | 826     |                     |   | $ | 8,021 |   |
|                                              |   |   |   |   |   |   |    |                     |   |   |   |   |
| Ratios:                                           |   |   |   |   |   |   |    |                     |   |   |   |   |
| Net      loss and LAE                             |   |   | 46.7   | %      |   |   | 74.5    | %                        |   |   |   |   |
| Net      acquisition expense                      |   |   | 18.2   | %      |   |   | 21.3    | %                        |   |   |   |   |
| Net      loss, LAE and acquisition expense ratios |   |   | 65.0   | %      |   |   | 95.8    | %                        |   | (30.8)      points |   |
| Other      underwriting expense                   |   |   | 8.2    | %      |   |   | 3.6     | %                        |   | 4.6      points |   |
| Combined                                          |   |   | 73.2   | %      |   |   | 99.4    | %                        |   | (26.2)      points |   |

----

|                     |   | 2007   |   |   | 2006   |   |   | Decrease |   |
|--------------------------|--------|--------|--------|--------|--------|--------|--------|----------|--------|
|                     |   |   |   |   |   |   |   |     |   |
| Income      taxes        |   | $      | 23,825 |   |   |   | 30,167 |     |   | $ | 6,342 |   |
| Effective      tax rates |   |   | 6.3    | %      |   |   | 8.4    | %        |   | 2.1      points |   |

----

|                                                               |   | Fair      Value |      |   | Net      Unrealized Gain (Loss) |   |     | Average      Credit Quality |   |
|--------------------------------------------------------------------|--------|-----------------|-----------|--------|---------------------------------|--------|----------|-----------------------------|--------|
|                                                               |   |            |      |   |                            |   |     |                        |   |
| Available-for-sale    securities:                                  |   |            |      |   |                            |   |     |                        |   |
| U.S.      Government                                               |   | $               | 4,641     |   |                            | $      | 545      |                        |   | Aaa |   |
| U.S.      Government agencies                                      |   |            | 811,489   |   |                            |   | 24,641   |                        |   | Aaa |   |
| Corporate:                                                         |   |            |      |   |                            |   |     |                        |   |   |   |
| Industrial                                                         |   |            | 387,646   |   |                            |   | (9,038   | )                           |   |   | A2 |   |
| Finance                                                            |   |            | 171,101   |   |                            |   | (9,431   | )                           |   |   | A1 |   |
| Utilities                                                          |   |            | 48,500    |   |                            |   | (1,810   | )                           |   |   | A2 |   |
| Insurance                                                          |   |            | 47,859    |   |                            |   | (3,017   | )                           |   | Aa3 |   |
| Preferreds      with maturity date                                 |   |            | 25,054    |   |                            |   | (7,789   | )                           |   | Aa3 |   |
| Hybrid      trust preferreds                                       |   |            | 10,368    |   |                            |   | (7,179   | )                           |   |   | A1 |   |
| Mortgage-backed      and asset-backed securities:                  |   |            |      |   |                            |   |     |                        |   |   |   |   |
| U.S.      Government agency residential mortgage-backed securities |   |            | 474,424   |   |                            |   | 9,419    |                        |   | Aaa |   |
| Non-agency      residential mortgage-backed securities             |   |            | 93,907    |   |                            |   | (54,947  | )                           |   | Aa1 |   |
| Sub-prime      asset-backed securities                             |   |            | 14,590    |   |                            |   | (25,914  | )                           |   |   | A1 |   |
| Alt-A      residential mortgage-backed securities                  |   |            | 9,576     |   |                            |   | (6,132   | )                           |   |   | A1 |   |
| Commercial      mortgage-backed securities                         |   |            | 372,806   |   |                            |   | (105,482 | )                           |   | Aaa |   |
| Asset-backed      securities                                       |   |            | 119,655   |   |                            |   | (10,215  | )                           |   | Aa1 |   |
| Municipal      bonds                                               |   |            | 393,484   |   |                            |   | 3,142    |                        |   | Aa2 |   |
| Non-U.S. governments      and states                          |   |            | 78,704    |   |                            |   | (560     | )                           |   | Aa2 |   |
| Total      fixed maturity available-for-sale securities            |   |            | 3,063,804 |   |                            |   | (203,767 | )                           |   | Aa1 |   |
| Preferred      stocks                                              |   |            | 2,845     |   |                            |   | (242     | )                           |   |   | A1 |   |
| Total      available-for-sale securities                           |   |            | 3,066,649 |   |                            |   | (204,009 | )                           |   | Aa1 |   |
|                                                               |   |            |      |   |                            |   |     |                        |   |   |   |   |
| Trading securities:                                                |   |            |      |   |                            |   |     |                        |   |   |   |   |
| U.S.      Government                                               |   |            | 196,383   |   |                            |   | n/a      |                        |   | Aaa |   |
| Non-U.S.      dollar denominated corporate bonds                   |   |            | 4,125     |   |                            |   | n/a      |                        |   | Aa2 |   |
| Non-U.S.      dollar denominated, non-U.S. governments and states  |   |            | 104,729   |   |                            |   | n/a      |                        |   | Aaa |   |
| Total      trading securities                                      |   |            | 305,237   |   |                            |   | n/a      |                        |   | Aaa |   |
|                                                               |   |            |      |   |                            |   |     |                        |   |   |   |   |
| Total                                                              |   | $               | 3,371,886 |   |                            | $      | (204,009 | )                           |   | Aa1 |   |

----

----

----

| Contractual      Obligations                       |   | Total  |      |   | Less      than 1 year |   |    | 1 –      3 years |   |   | 3 –      5 Years |   |   | More      than 5 years |    |
|----------------------------------------------------|--------|--------|-----------|--------|-----------------------|--------|---------|------------------------|--------|--------|------------------------|--------|--------|------------------------|---------|
|                                               |   |   |      |   |                  |   |    |                   |   |   |                   |   |   |                   |    |
| Series      B Notes due June 1,      2017 (1) |   | $      | 250,000   |   |                  |   | – |                   |   |   | –                |   |   |                   | – |   |   | $ | 250,000 |   |
| Scheduled      interest payments                   |   |   | 159,375   |   |                  |   | 18,750  |                   |   |   | 37,500                 |   |   |                   | 37,500  |   |   |   | 65,625 |   |
| Subtotal      – Debt Obligations             |   |   | 409,375   |   |                  |   | 18,750  |                   |   |   | 37,500                 |   |   |                   | 37,500  |   |   |   | 315,625 |   |
| Operating      Leases (2)                          |   |   | 10,056    |   |                  |   | 3,010   |                   |   |   | 4,144                  |   |   |                   | 2,902   |   |   |   | – |   |
|                                               |   |   |      |   |                  |   |    |                   |   |   |                   |   |   |                   |    |   |   |   |   |   |
| Gross      unpaid losses and LAE (3)               |   | $      | 2,463,506 |   |                  |   | 713,624 |                   |   |   | 751,785                |   |   |                   | 404,545 |   |   | $ | 593,552 |   |

|   | (1) | See      Note 7 of the Notes to the Consolidated Financial    Statements. |
|--------|-----|---------------------------------------------------------------------------|

|   | (2) | See      Note 14 of the Notes to the Consolidated Financial    Statements. |
|--------|-----|----------------------------------------------------------------------------|

|   | (3) | There      are generally no notional or stated amounts related to unpaid losses and      LAE.  Both the amounts and timing of future loss and LAE      payments are estimates and subject to the inherent variability of legal      and market conditions affecting the obligations and make the timing of      cash outflows uncertain.  The ultimate amount and timing of      unpaid losses and LAE could differ materially from the amounts in the      table above.  Further, the gross unpaid losses and LAE do not      represent all of the obligations that will arise under the contracts, but      rather only the estimated liability incurred through December 31,      2008.  There are reinsurance contracts that have terms extending      into 2009 under which additional obligations will be    incurred. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  Item 7A. | Quantitative      and Qualitative Disclosures about MarketRisk |
|----------------|----------------------------------------------------------------|

----

|                                                  |   | Interest      Rate Shift in Basis Points |         |
|-------------------------------------------------------|--------|------------------------------------------|--------------|
|                                                  |   |                                     | -      100bp |   |   |   | -      50bp |   |   | Current |   |   |   | +      50bp |   |   |   | +      100bp |   |
|                                                  |   |                                     |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      market value                               |   | $                                        | 3,476,272    |   |   |   | 3,425,170 |   |   |   | 3,371,886 |   |   |   | 3,316,651 |   |   | $ | 3,261,473 |   |
| Percent      change in market value                   |   |                                     | 3.1          | % |   |   | 1.6 | % |   |   | – |   |   |   | (1.6 | %) |   |   | (3.3 | %) |
| Resulting      unrealized appreciation (depreciation) |   | $                                        | (91,223      | ) |   |   | (142,325 | ) |   |   | (195,609 | ) |   |   | (250,844 | ) |   | $ | (306,022 | ) |

|                           |   | Carrying      Amount |      |   | Fair      Value |   |
|--------------------------------|--------|----------------------|-----------|--------|-----------------|--------|
|                           |   |                 |      |   |            |   |
| Financial assets:              |   |                 |      |   |            |   |
| Fixed      maturity securities |   | $                    | 3,369,041 |   |            | $      | 3,369,041 |   |
| Preferred      stocks          |   |                 | 2,845     |   |            |   | 2,845 |   |
| Short-term      investments    |   |                 | 75,036    |   |            |   | 75,036 |   |
|                           |   |                 |      |   |            |   |   |   |
| Financial liabilities:         |   |                 |      |   |            |   |   |   |
| Debt      obligations          |   | $                    | 250,000   |   |            | $      | 200,350 |   |
| Derivative      instruments    |   |                 | 4,753     |   |            |   | 4,753 |   |

----

|  Item 8. | Financial      Statements and Supplementary Data |
|---------------|--------------------------------------------------|

|  Item 9. | Changes      in and Disagreements With Accountants on Accounting and Financial      Disclosure |
|---------------|------------------------------------------------------------------------------------------------|

|  Item 9A. | Controls      and Procedures |
|----------------|------------------------------|

----

OF INDEPENDENT REGISTERED PUBLIC ACCOUNTINGFIRM

----

|  Item 9B. | Other      Information |
|----------------|------------------------|

|  Item 10. | Directors,      Executive Officers and CorporateGovernance |
|----------------|------------------------------------------------------------|

|  Item 11. | Executive      Compensation |
|----------------|-----------------------------|

|  Item 12. | Security      Ownership of Certain Beneficial Owners and Management and Related      Shareholder Matters |
|----------------|----------------------------------------------------------------------------------------------------------|

| Plan      Category                                              |   | (a)Number      of Securities to be Issued upon Exercise of Outstanding Options, Warrants      and Rights |      |   | (b)Weighted      Average Exercise Price of Outstanding Options, Warrants and      Rights |   |    | (c)Number      of Securities Remaining Available for Future Issuance under Equity      Compensation Plans (excluding securities reflected in column      (a)) |   |
|-----------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------|-----------|--------|------------------------------------------------------------------------------------------|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Equity      compensation plans approved by security holders (1) |   |                                                                                                     | 3,176,198 |   |                                                                                     | $      | 30.48   |                                                                                                                                                          |   |   | 2,928,959 |   |
| Equity      compensation plans not approved by security holders |   |                                                                                                     | —   |   |                                                                                     |   | — |                                                                                                                                                          |   |   | — |   |
| Total                                                           |   |                                                                                                     | 3,176,198 |   |                                                                                     | $      | 30.48   |                                                                                                                                                          |   |   | 2,928,959 |   |

|   | (1) | These      plans consist of the 2002 Share Incentive Plan, which was approved by our      shareholders at the 2004 Annual General Meeting of Shareholders, the 2006      Share Incentive Plan, which was approved by our shareholders at the 2006      Annual General Meeting of Shareholders and replaced the 2002 Share      Incentive Plan, and the Share Unit Plan for Nonemployee Directors, which      was approved by our sole shareholder prior to our initial public offering      in 2002. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  Item 13. | Certain      Relationships and Related Transactions, and Director      Independence |
|----------------|-------------------------------------------------------------------------------------|

|  Item 14. | Principal      Accountant Fees and Services |
|----------------|---------------------------------------------|

|  Item 15. | Exhibits      and Financial Statement Schedules |
|----------------|-------------------------------------------------|

----

Exhibits

| Exhibit      Number |   | Description                                                                                                                                                                                                                                                   |
|---------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                |   |                                                                                                                                                                                                                                                          |
| 2.1                 |   | Formation      and Separation Agreement dated October 28, 2002 between The St. Paul      Companies, Inc. and Platinum Holdings. (2)                                                                                                                           |
| 3(i).1              |   | Memorandum      of Association of Platinum Holdings. (1)                                                                                                                                                                                                      |
| 3(ii).1             |   | Bye-Laws      of Platinum Holdings. (26)                                                                                                                                                                                                                      |
| 3(ii).2             |   | Certificate      of Designation of 6% Series A Mandatory Convertible Preferred Shares of      Platinum Holdings dated December 1, 2005. (21)                                                                                                             |
| 4.1                 |   | Form      of Certificate of the Common Shares of Platinum Holdings. (2)                                                                                                                                                                                       |
| 4.2                 |   | Indenture      dated October 10, 2002 among Platinum Holdings, Platinum Finance and      JP Morgan Chase. (2)                                                                                                                                            |
| 4.3                 |   | Indenture      Supplement dated November 1, 2002 among Platinum Holdings, Platinum      Finance and JP Morgan Chase. (2)                                                                                                                                 |
| 4.4                 |   | Second      Supplemental Indenture dated August 16, 2005 between Platinum Holdings,      Platinum Finance and JP Morgan Chase. (17)                                                                                                                           |
| 4.5                 |   | Indenture      dated May 26, 2005 between Platinum Holdings, Platinum Finance and JP      Morgan Chase. (15)                                                                                                                                             |
| 4.6                 |   | First      Supplemental Indenture dated May 26, 2005 between Platinum Holdings,      Platinum Finance and JP Morgan Chase. (15)                                                                                                                          |
| 4.7                 |   | Second      Supplemental Indenture dated as of November 2, 2005 among Platinum      Finance, Platinum Holdings and JP Morgan Chase. (19)                                                                                                                 |
| 4.8                 |   | Purchase      Contract Agreement dated November 1, 2002 between Platinum Holdings      and JP Morgan Chase. (2)                                                                                                                                          |
| 4.9                 |   | Form      of Senior Note of Platinum Finance. (2)                                                                                                                                                                                                             |
| 4.10                |   | Form      of Guarantee of Platinum Holdings. (2)                                                                                                                                                                                                              |
| 4.11                |   | Exchange      and Registration Rights Agreement dated May 26, 2005 among      Platinum  Holdings, Platinum Finance and Goldman, Sachs &      Co. (15)                                                                                      |
| 4.12                |   | Exchange      and Registration Rights Agreement dated August 16, 2005 between Platinum      Holdings, Platinum Finance, and Goldman, Sachs & Co. and Merrill      Lynch. (17)                                                                             |
| 4.13                |   | Transfer      Restrictions, Registration Rights and Standstill Agreement dated      November 1, 2002 between Platinum Holdings and RenaissanceRe. (2)                                                                                                    |
| 4.14                |   | Amendment      No. 1 dated December 5, 2005 to the Transfer Restrictions,      Registration Rights and Standstill Agreement dated November 1, 2002      between Platinum Holdings and RenaissanceRe. (21)                                           |
| 4.15                |   | Assignment      and Assumption Agreement dated October 23, 2008 of the Transfer      Restrictions, Registration Rights and Standstill Agreement dated November      1, 2002 as amended December 5, 2005 between Platinum Holdings and      RenaissanceRe (40) |
| 10.1*               |   | Amended      and Restated Share Unit Plan for Nonemployee Directors. (38)                                                                                                                                                                                     |
| 10.2*               |   | Amendment      of Amended and Restated Share Unit Plan for Nonemployee      Directors.                                                                                                                                                                        |
| 10.3*               |   | Form      of Nonemployee Director Share Unit Award Agreement. (22)                                                                                                                                                                                            |
| 10.4*               |   | Summary      of Platinum Holdings’ Nonemployee Director Compensation      Program.                                                                                                                                                                      |
| 10.5*               |   | 2002      Share Incentive Plan (2004 Update). (5)                                                                                                                                                                                                             |
| 10.6*               |   | 2002      Share Incentive Plan (UK Sub-Plan) (included in Exhibit 10.3). (5)                                                                                                                                                                                  |
| 10.7*               |   | 2006      Share Incentive Plan. (28)                                                                                                                                                                                                                          |
| 10.8      *         |   | Amended      and Restated Annual Incentive Plan. (25)                                                                                                                                                                                                         |
| 10.9*               |   | Form      of AIP Restricted Share Unit Award Agreement (33)                                                                                                                                                                                                   |
| 10.10               |   | Section      162(m) Performance Incentive Plan. (5)                                                                                                                                                                                                           |
| 10.11*              |   | Executive      Retirement Savings Plan. (5)                                                                                                                                                                                                                   |
| 10.12*              |   | Amendment      of Executive Retirement Savings Plan.                                                                                                                                                                                                          |
| 10.13*              |   | Arrangement      for Compensation in Lieu of Participation in Executive Retirement Savings      Plan.                                                                                                                                                         |
| 10.14*              |   | Amended      and Restated Executive Bonus Deferral Plan. (38)                                                                                                                                                                                                 |
| 10.15*              |   | Executive      Incentive Plan (for awards for 2005 – 2009 performance cycle). (5)                                                                                                                                                                       |
| 10.16*              |   | First      Amendment to the Executive Incentive Plan (for awards for 2005 – 2009      performance cycle). (7)                                                                                                                                           |
| 10.17*              |   | Form      of Amendment to EIP Award Agreement for 2005 – 2009 performance cycle.      (38)                                                                                                                                                              |
| 10.18*              |   | Amended      and Restated Executive Incentive Plan. (38)                                                                                                                                                                                                      |

----

|  Exhibit      Number |   |  Description                                                                                                                                                                                                                                                                                                                |
|---------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                      |   |                                                                                                                                                                                                                                                                                                                             |
| 10.19*                    |   | Form      of EIP Share Unit Award Agreement (for awards for 2006 – 2008 and      2007-2009 performance cycles). (22)                                                                                                                                                                                                       |
| 10.20*                    |   | Form      of EIP Share Unit Award Agreement (for awards for 2008 – 2010 performance      cycle). (34)                                                                                                                                                                                                                      |
| 10.21*                    |   | Form      of EIP Share Unit Award Agreement. (39)                                                                                                                                                                                                                                                                                |
| 10.22*                    |   | Capital      Accumulation Plan. (2)                                                                                                                                                                                                                                                                                              |
| 10.23*                    |   | Form      of Nonqualified Share Option Agreement (Employee) (for awards made prior      to July 23, 2008). (10)                                                                                                                                                                                                                  |
| 10.24*                    |   | Form      of Nonqualified Share Option Agreement (Employee). (39)                                                                                                                                                                                                                                                                |
| 10.25*                    |   | Form      of Nonqualified Share Option Agreement (New Nonemployee Director). (10)                                                                                                                                                                                                                                                |
| 10.26*                    |   | Form      of Nonqualified Share Option Agreement (Annual Nonemployee Director).      (10)                                                                                                                                                                                                                                        |
| 10.27*                    |   | Form      of Time-Based Share Unit Award Agreement (for awards made prior to July      23, 2008). (10)                                                                                                                                                                                                                           |
| 10.28*                    |   | Form      of Time-Based Share Unit Award Agreement. (39)                                                                                                                                                                                                                                                                         |
| 10.29*                    |   | Form      of Special Share Unit Award Agreement. (10)                                                                                                                                                                                                                                                                            |
| 10.30*                    |   | Form      of Restricted Share Award Agreement (for awards made prior to July 23,      2008). (10)                                                                                                                                                                                                                                |
| 10.31*                    |   | Form      of Restricted Share Award Agreement. (38)                                                                                                                                                                                                                                                                              |
| 10.32*                    |   | Amended      and Restated Change in Control Severance Plan. (38)                                                                                                                                                                                                                                                                 |
| 10.33*                    |   | Retention      Bonus Plan. (35)                                                                                                                                                                                                                                                                                                  |
| 10.34*                    |   | Amended      and Restated Employee Severance Plan. (38)                                                                                                                                                                                                                                                                          |
| 10.35*                    |   | Employment      Agreement dated November 1, 2005 between Platinum Holdings and      Michael E. Lombardozzi. (20)                                                                                                                                                                                                            |
| 10.36*                    |   | Letter      Agreement dated March 3, 2008 between Platinum Holdings, Steven H. Newman,      SHN Enterprises, Inc. and Platinum US, and exhibits thereto. (36)                                                                                                                                                                    |
| 10.37*                    |   | Employment      Agreement dated July 24, 2008 between Michael D. Price and Platinum      Holdings. (38)                                                                                                                                                                                                                          |
| 10.38*                    |   | Separation      Agreement dated June 1, 2007 between Joseph F. Fisher and Platinum      Holdings. (31)                                                                                                                                                                                                                           |
| 10.39*                    |   | Employment      Agreement dated February 26, 2006 between Platinum Bermuda and Robert      S. Porter. (22)                                                                                                                                                                                                                  |
| 10.40*                    |   | Letter      Agreement dated July 25, 2006 between H. Elizabeth Mitchell and Platinum      US. (23)                                                                                                                                                                                                                               |
| 10.41*                    |   | Employment      Agreement dated June 1, 2007 between Platinum Holdings and James A.      Krantz. (31)                                                                                                                                                                                                                            |
| 10.42                     |   | Capital      Support Agreement dated November 26, 2002 between Platinum Holdings      and Platinum US. (2)                                                                                                                                                                                                                  |
| 10.43                     |   | Amended      and Restated Option Agreement dated January 10, 2005 among St. Paul      Reinsurance Company Limited, Platinum Holdings and St. Paul. (9)                                                                                                                                                                           |
| 10.44                     |   | Assignment,      effective April 1, 2008, among Platinum Holdings, The Travelers Companies,      Inc. (formerly St. Paul) and Unionamerica Insurance Company Limited of      Amended and Restated Option Agreement dated January 10, 2005 among St.      Paul Reinsurance Company Limited, Platinum Holdings, and St. Paul. (37) |
| 10.45                     |   | Amended      and Restated Option Agreement dated January 10, 2005 between St. Paul and      Platinum Holdings. (9)                                                                                                                                                                                                               |
| 10.46                     |   | Investment  Management      Agreement dated May 12, 2005 between Platinum US and Hyperion Capital      Management, Inc. (12)                                                                                                                                                                                      |
| 10.47                     |   | Investment  Management      Agreement dated May 12, 2005 between Platinum Bermuda and Hyperion      Capital Management, Inc. (12)                                                                                                                                                                                 |
| 10.48                     |   | Investment      Management Agreement dated May 12, 2005 between Platinum Holdings,      Platinum Bermuda, Platinum Regency and BlackRock Financial Management,      Inc. (12)                                                                                                                                               |
| 10.49                     |   | Investment      Management Agreement dated May 12, 2005 between Platinum UK and      BlackRock Financial Management, Inc. (12)                                                                                                                                                                                              |
| 10.50                     |   | Investment      Management Agreement dated May 12, 2005 between Platinum US, Platinum      Finance and BlackRock Financial Management, Inc. (12)                                                                                                                                                                            |
| 10.51                     |   | Investment      Agreement dated September 20, 2002 among Platinum Holdings, St. Paul, and      RenaissanceRe. (2)                                                                                                                                                                                                                |
| 10.52                     |   | First      Amendment dated November 1, 2002 to the Investment Agreement dated      September 20, 2002 among Platinum Holdings, St. Paul, and RenaissanceRe.      (2)                                                                                                                                                        |
| 10.53                     |   | Amended      and Restated Option Agreement dated October 23, 2008 between Platinum      Holdings, RenaissanceRe and Renaissance Other Investments Holdings II Ltd.      (40)                                                                                                                                                     |
| 10.54                     |   | Services      and Capacity Reservation Agreement dated November 1, 2002 between      Platinum Holdings and RenaissanceRe. (2)                                                                                                                                                                                               |
| 10.55                     |   | Quota      Share Retrocession Agreement dated November 26, 2002 between Platinum      Bermuda and Platinum UK. (2)                                                                                                                                                                                                          |

----

|  Exhibit      Number |   |  Description                                                                                                                                                                                                                                                                                                                                                                                    |
|---------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                      |   |                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.56                     |   | Quota      Share Retrocession Agreement dated March 27, 2003 between Platinum Bermuda      and Platinum UK. (5)                                                                                                                                                                                                                                                                                      |
| 10.57                     |   | Addendum      No. 1 effective April 1, 2003 to the Quota Share Retrocession Agreement      dated March 27, 2003 between Platinum Bermuda and Platinum UK. (5)                                                                                                                                                                                                                                        |
| 10.58                     |   | Addendum      No. 2 effective March 27, 2003 to the Quota Share Retrocession Agreement      dated March 27, 2003 between Platinum Bermuda and Platinum UK. (5)                                                                                                                                                                                                                                       |
| 10.59                     |   | Addendum      No. 3 effective April 1, 2005 to the Quota Share Reinsurance Agreement      dated March 27, 2003 between Platinum Bermuda and Platinum UK. (11)                                                                                                                                                                                                                                        |
| 10.60                     |   | Security      Agreement dated November 26, 2002 between Platinum Bermuda and      Platinum UK. (2)                                                                                                                                                                                                                                                                                              |
| 10.61                     |   | Addendum      No. 1 effective January 1, 2004 to the Security Agreement dated      November 26, 2002 between Platinum Bermuda and Platinum UK. (5)                                                                                                                                                                                                                                              |
| 10.62                     |   | Control      Agreement dated November 26, 2002 among Platinum Bermuda, Platinum UK      and State Street Bank. (2)                                                                                                                                                                                                                                                                              |
| 10.63                     |   | Discretionary      Investment Advisory Agreement dated November 26, 2002 between      Platinum Bermuda and Platinum UK. (2)                                                                                                                                                                                                                                                                     |
| 10.64                     |   | Trust      Agreement effective January 1, 2003 among Platinum Bermuda, Platinum US      and State Street Bank. (3)                                                                                                                                                                                                                                                                                   |
| 10.65                     |   | Amendment      No. 1 effective October 3, 2007 to Trust Agreement effective January 1,      2003 among Platinum Bermuda, Platinum US and State Street Bank. (32)                                                                                                                                                                                                                                     |
| 10.66                     |   | Quota      Share Retrocession Agreement dated May 13, 2003 between Platinum      Bermuda and Platinum US. (3)                                                                                                                                                                                                                                                                                   |
| 10.67                     |   | Addendum      No. 1 dated as of October 1, 2003 to the Quota Share Retrocession      Agreement dated May 13, 2003 between Platinum Bermuda and Platinum      US. (4)                                                                                                                                                                                                                            |
| 10.68                     |   | Quota      Share Retrocession Agreement dated May 6, 2004 between Platinum      Bermuda and Platinum US. (6)                                                                                                                                                                                                                                                                                    |   |
| 10.69                     |   | Addendum      No. 2 effective as of April 1, 2005 to the Quota Share Retrocession      Agreement between Platinum Bermuda and Platinum US. (13)                                                                                                                                                                                                                                                      |   |
| 10.70                     |   | Amended      and Restated Quota Share Retrocession Agreement dated January 1, 2006      between Platinum Bermuda and Platinum US. (26)                                                                                                                                                                                                                                                               |
| 10.71                     |   | Termination      Addendum effective December 31, 2006 to Amended and Restated Quota      Share Retrocession Agreement dated January 1, 2006 between Platinum      Bermuda and Platinum US. (29)                                                                                                                                                                                                 |
| 10.72                     |   | Casualty      and Specialty Quota Share Retrocession Agreement between Platinum Bermuda      and Platinum US dated as of January 1, 2007. (29)                                                                                                                                                                                                                                                       |
| 10.73                     |   | Termination      Addendum effective December 31, 2007 to Casualty and Specialty Quota Share      Retrocession Agreement between Platinum Bermuda and Platinum US dated as      of January 1, 2007. (37)                                                                                                                                                                                              |
| 10.74                     |   | Quota      Share Retrocession Agreement by and between Platinum Bermuda and Platinum      UK dated as of January 1, 2006. (27)                                                                                                                                                                                                                                                                       |
| 10.75                     |   | Excess      of Loss Retrocession Agreement by and between Platinum Bermuda and      Platinum US dated as of April 1, 2006. (27)                                                                                                                                                                                                                                                                      |
| 10.76                     |   | Addendum      No. 1 effective as of February 15, 2007 to the Excess of Loss      Retrocession Agreement by and between Platinum Bermuda and Platinum US      dated as of April 1, 2006. (30)                                                                                                                                                                                                    |
| 10.77                     |   | Excess      of Loss Retrocession Agreement by and between Platinum Bermuda and      Platinum US dated January 1, 2008.      (35)                                                                                                                                                                                                                                                                     |
| 10.78                     |   | Termination      Addendum effective August 5, 2008 to Excess of Loss Retrocession Agreement      by and between Platinum Bermuda and Platinum US dated January 1, 2008.      (40)                                                                                                                                                                                                                    |
| 10.79                     |   | Excess      of Loss Retrocession Agreement by and between Platinum US and Platinum      Bermuda dated August 5, 2008. (40)                                                                                                                                                                                                                                                                           |
| 10.80                     |   | Excess      of Loss Retrocession Agreement effective as of April 1, 2005 between      Platinum US and Platinum UK. (13)                                                                                                                                                                                                                                                                              |
| 10.81                     |   | Amended      and Restated Credit Agreement, dated as of September 13, 2006, by and      among the Company, certain subsidiaries of the Company, Wachovia Bank,      National Association, Citibank, N.A., HSBC Bank USA, National Association,      Bayerische Hypo-Und Vereinsbank AG and Comerica Bank as the Lenders, and      Wachovia Bank, National Association, as Administrative Agent. (24) |
| 10.82                     |   | List      of Contents of exhibits and Schedules to the Amended and Restated Credit      Agreement. (24)                                                                                                                                                                                                                                                                                              |
| 10.83                     |   | First      Amendment and Waiver dated as of April 24, 2007 to Amended and Restated      Credit Agreement dated as of September 13, 2006. (30)                                                                                                                                                                                                                                                        |
| 10.84                     |   | Second      Amendment dated as of December 3, 2007 to Amended and Restated Credit      Agreement dated as of September 13, 2006. (33)                                                                                                                                                                                                                                                           |
| 10.85                     |   | Referral      Agreement between Platinum Bermuda and Renaissance Underwriting Managers      Ltd. (3)                                                                                                                                                                                                                                                                                                 |
| 10.86                     |   | Referral      Agreement between Platinum US and Renaissance Underwriting Managers Ltd.      (4)                                                                                                                                                                                                                                                                                                      |
| 10.87                     |   | Guaranty      dated December 31, 2003 between Platinum Holdings and Platinum US.      (4)                                                                                                                                                                                                                                                                                                       |
| 10.88                     |   | Amendment      No. 1 dated January 1, 2005 to Guaranty dated December 31, 2003      between Platinum Holdings and Platinum US. (16)                                                                                                                                                                                                                                                             |
| 10.89                     |   | Guarantee      dated December 31, 2003 between Platinum Holdings and Platinum UK.      (4)                                                                                                                                                                                                                                                                                                      |
| 10.90                     |   | Purchase      Agreement dated May 20, 2005 among Platinum Holdings, Platinum      Finance and Goldman, Sachs & Co. (14)                                                                                                                                                                                                                                                                     |

----

|  Exhibit      Number |   |  Description                                                                                                                                                                                         |
|---------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                      |   |                                                                                                                                                                                                      |
| 10.91                     |   | Remarketing      Agreement dated August 8, 2005 among Platinum Holdings, Platinum Finance,      Goldman, Sachs & Co. and Merrill Lynch. (16)                                                          |
| 10.92                     |   | Pledge      Agreement dated November 1, 2002 among Platinum Holdings, State      Street Bank and Trust Company and JP Morgan Chase. (2)                                                              |
| 14.1                      |   | Code      of Business Conduct and Ethics. (38)                                                                                                                                                            |
| 21.1                      |   | Subsidiaries      of Platinum Holdings.                                                                                                                                                                   |
| 23.1                      |   | Independent      Registered Public Accounting Firm’s Consent.                                                                                                                                       |
| 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 Securities Exchange      Act of 1934, as amended.          |
| 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 Securities Exchange Act of      1934, as amended.           |
| 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 of2002.   |

|   | (1) | Incorporated      by reference from the Registration Statement on Form S-1 (Registration No.      333-86906) of Platinum Holdings. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Incorporated      by reference from Platinum Holdings’ Annual Report on Form 10-K for the      year ended December 31, 2002, filed with the SEC on March 31,      2003. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Incorporated      by reference from Platinum Holdings’ Quarterly Report on Form 10-Q for the      quarter ended June 30, 2003, filed with the SEC on August 14,      2003. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Incorporated      by reference from Platinum Holdings’ Annual Report on Form 10-K for the      year ended December 31, 2003, filed with the SEC on March 15,      2004. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | Incorporated      by reference from Platinum Holdings’ Quarterly Report on Form 10-Q for the      quarter ended March 31, 2004, filed with the SEC on May 10,      2004. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (6) | Incorporated      by reference from Platinum Holdings’ Quarterly Report on Form 10-Q for the      quarter ended June 30, 2004, filed with the SEC on August 6,      2004. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (7) | Incorporated      by reference from Platinum Holdings’ Current Report on Form 8-K filed with      the SEC on November 9, 2004. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | (8) | Incorporated      by reference from Platinum Holdings’ Current Report on Form 8-K, filed      with the SEC on November 18,2004. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | (9) | Incorporated      by reference from Platinum Holdings’ Current Report on Form 8-K, filed      with the SEC on January 11, 2005. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------|

|   | (10) | Incorporated      by reference from Platinum Holdings’ Current Report on Form 8-K, filed      with the SEC on February 23,2005. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | (11) | Incorporated      by reference from Platinum Holdings’ Current Report on Form 8-K, filed      with the SEC on April 14, 2005. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------|

|   | (12) | Incorporated      by reference from Platinum Holdings’ Current Report on Form 8-K, filed      with the SEC on May 13, 2005. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------|

|   | (13) | Incorporated      by reference from Platinum Holdings’ Current Report on Form 8-K, filed      with the SEC on May 18, 2005. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------|

|   | (14) | Incorporated      by reference from Platinum Holdings’ Current Report on Form 8-K, filed      with the SEC on May 24, 2005. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------|

|   | (15) | Incorporated      by reference from Platinum Holdings’ Current Report on Form 8-K, filed      with the SEC on May 27, 2005. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------|

|   | (16) | Incorporated      by reference from Platinum Holdings’ Quarterly Report on Form 10-Q for the      quarter ended June 30, 2005, filed with the SEC on August 5,      2005. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (17) | Incorporated      by reference from Platinum Holdings’ Current Report on Form 8-K, filed      with the SEC on August 17, 2005. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | (18) | Incorporated      by reference from Platinum Holdings’ Current Report on Form 8-K, filed      with the SEC on October 28, 2005. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (19) | Incorporated      by reference from Platinum Holdings’ Current Report on Form 8-K, filed      with the SEC on November 3,2005. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | (20) | Incorporated      by reference from Platinum Holdings’ Current Report on Form 8-K, filed      with the SEC on November 21,2005. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | (21) | Incorporated      by reference from Platinum Holdings’ Current Report on Form 8-K, filed      with the SEC on December 6, 2005. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------|

|   | (22) | Incorporated      by reference from Platinum Holdings’ Current Report on Form 8-K, filed      with the SEC on February 27,2006. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | (23) | Incorporated      by reference from Platinum Holdings’ Current Report on Form 8-K, filed      with the SEC on July 26, 2006. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------|

|   | (24) | Incorporated      by reference from Platinum Holdings’ Current Report on Form 8-K, filed      with the SEC on September 18, 2006. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | (25) | Incorporated      by reference from Platinum Holding’s Current Report on Form 8-K, filed      with the SEC on February 22,2007. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | (26) | Incorporated      by reference from Platinum Holdings’ Quarterly Report on Form 10-Q for the      quarter ended March 31, 2006, filed with the SEC on April 28,      2006. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (27) | Incorporated      by reference from Platinum Holdings’ Quarterly Report on Form 10-Q for the      quarter ended June 30, 2006, filed with the SEC on July 31,      2006. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (28) | Incorporated      by reference from the Registration Statement on Form S-8 (Registration No.      333-133521) of Platinum Holdings, filed with the SEC on April 25,      2006. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (29) | Incorporated      by reference from Platinum Holdings’ Annual Report on Form 10-K for the      year ended December 31, 2006, filed with the SEC on February 28,      2007. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (30) | Incorporated      by reference from Platinum Holdings’ Quarterly Report on Form 10-Q for the      quarter ended March 31, 2007, filed with the SEC on April 27,      2007. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (31) | Incorporated      by reference from Platinum Holdings’ Current Report on Form 8-K, filed      with the SEC on June 4, 2007. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | (32) | Incorporated      by reference from Platinum Holdings’ Quarterly Report on Form 10-Q for the      quarter ended September 30, 2007, filed with the SEC on November 1,      2007. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (33) | Incorporated      by reference from Platinum Holdings’ Current Report on Form 8-K, filed      with the SEC on December 6, 2007. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------|

|   | (34) | Incorporated      by reference from Platinum Holdings’ Current Report on Form 8-K filed with      the SEC on February 25, 2008. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | (35) | Incorporated      by reference from Platinum Holdings’ Annual Report on Form 10-K for the      year ended December 31, 2007, filed with the SEC on February 29,      2008. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (36) | Incorporated      by reference from Platinum Holdings’ Current Report on form 8-K filed with      the SEC on March 4, 2008. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | (37) | Incorporated      by reference from Platinum Holdings’ Quarterly Report on Form 10-Q for the      quarter ended March 31, 2008, filed with the SEC on April 30,      2008. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (38) | Incorporated      by reference from Platinum Holdings’ Current Report on Form 8-K filed with      the SEC on July 25, 2008. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | (39) | Incorporated      by reference from Platinum Holdings’ Quarterly Report on Form 10-Q for the      quarter ended June 30, 2008, filed with the SEC on July 30,      2008. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (40) | Incorporated      by reference from Platinum Holdings’ Quarterly Report on Form 10-Q for the      quarter ended September 30, 2008, filed with the SEC on October 30,      2008. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

SIGNATURES

| Date:        | February 24,      2009 | PLATINUM      UNDERWRITERS HOLDINGS, LTD.  |
|-------------------|-----------------------------|--------------------------------------------|
|              |                        |                                       |
|              |                        |  /s/      Michael D. Price            |
|              |                        | Michael      D. Price                      |
|              |                        | President      and Chief Executive Officer |

| Signature                                                      | Title                                                                                                                           | Date                        |
|----------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------|-----------------------------|
|                                                           |                                                                                                                            |                        |
|  /s/      Michael D. PriceMichael      D. Price      | President,      Chief Executive Officer and Director (Principal      Executive Officer)                                         | February 24,      2009 |
|  /s/      James A. KrantzJames      A. Krantz        | Executive      Vice President and Chief      Financial Officer (Principal      Financial and Principal      Accounting Officer) | February 24,      2009 |
|  /s/      Dan R. CarmichaelDan      R. Carmichael    | Chairman      of the Board of Directors                                                                                         | February 24,      2009 |
|  /s/      H. Furlong BaldwinH.      Furlong Baldwin  | Director                                                                                                                        | February 24,      2009 |
|  /s/      Jonathan F. BankJonathan      F. Bank      | Director                                                                                                                        | February 24,      2009 |
|  /s/      Robert V. DeutschRobert      V. Deutsch    | Director                                                                                                                        | February 24,      2009 |
|  /s/      A. John HassA.      John Hass              | Director                                                                                                                        | February 24,      2009 |
|  /s/      Edmund R. MegnaEdmund      R. Megna        | Director                                                                                                                        | February 24,      2009 |
|  /s/      Peter T. PruittPeter      T. Pruitt             | Director                                                                                                                        | February 24,      2009 |

----

|                                                                                                                                    | Page   |
|-----------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                    |   |
| Report      of Independent Registered Public Accounting Firm                                                                            | F-2    |
|                                                                                                                                    |   |
| Consolidated      Balance Sheets as of December 31, 2008 and 2007                                                                  | F-3    |
| Consolidated      Statements of Operations and Comprehensive Income for the years ended      December 31, 2008, 2007 and 2006 | F-4    |
| Consolidated      Statements of Shareholders' Equity for the years ended December 31,      2008, 2007 and 2006                     | F-5    |
| Consolidated      Statements of Cash Flows for the years ended December 31, 2008, 2007      and 2006                               | F-6    |
| Notes      to Consolidated Financial Statements                                                                                         | F-7    |

----

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTINGFIRM

----

Consolidated Balance Sheets

|                                                                                                                                          |   | 2008   |      |   | 2007   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| ASSETS                                                                                                                                        |
| Investments:                                                                                                                                  |   |   |      |   |   |   |
| Fixed      maturity available-for-sale securities at fair value (amortized      cost – $3,267,571 and $3,214,981, respectively)         |   | $      | 3,063,804 |   |   | $      | 3,191,923 |   |
| Fixed      maturity trading securities at fair value (amortized      cost – $296,837 and 170,952,      respectively)                    |   |   | 305,237   |   |   |   | 169,818 |   |
| Preferred      stocks (cost – $3,087 and $12,246, respectively)                                                                         |   |   | 2,845     |   |   |   | 9,607 |   |
| Short-term      investments                                                                                                                   |   |   | 75,036    |   |   |   | 13,876 |   |
| Total      investments                                                                                                                        |   |   | 3,446,922 |   |   |   | 3,385,224 |   |
| Cash      and cash equivalents                                                                                                                |   |   | 813,017   |   |   |   | 1,076,279 |   |
| Accrued      investment income                                                                                                                |   |   | 29,041    |   |   |   | 34,696 |   |
| Reinsurance      premiums receivable                                                                                                          |   |   | 307,539   |   |   |   | 244,360 |   |
| Reinsurance      recoverable on ceded losses and loss adjustment expenses                                                                     |   |   | 12,413    |   |   |   | 27,979 |   |
| Prepaid      reinsurance premiums                                                                                                             |   |   | 10,897    |   |   |   | 9,369 |   |
| Funds      held by ceding companies                                                                                                           |   |   | 136,278   |   |   |   | 165,604 |   |
| Deferred      acquisition costs                                                                                                               |   |   | 50,719    |   |   |   | 70,508 |   |
| Income      tax recoverable                                                                                                                   |   |   | 11,973    |   |   |   | 2,981 |   |
| Deferred      tax assets                                                                                                                      |   |   | 71,444    |   |   |   | 43,342 |   |
| Other      assets                                                                                                                             |   |   | 36,920    |   |   |   | 18,408 |   |
| Total      assets                                                                                                                             |   | $      | 4,927,163 |   |   | $      | 5,078,750 |   |
|                                                                                                                                          |   |   |      |   |   |   |   |   |
| LIABILITIES      AND SHAREHOLDERS’ EQUITY                                                                                               |
| Liabilities                                                                                                                                   |   |   |      |   |   |   |   |   |
| Unpaid      losses and loss adjustment expenses                                                                                               |   | $      | 2,463,506 |   |   | $      | 2,361,038 |   |
| Unearned      premiums                                                                                                                        |   |   | 218,890   |   |   |   | 298,498 |   |
| Debt      obligations                                                                                                                         |   |   | 250,000   |   |   |   | 250,000 |   |
| Ceded      premiums payable                                                                                                                   |   |   | 2,918     |   |   |   | 4,559 |   |
| Commissions      payable                                                                                                                      |   |   | 125,551   |   |   |   | 100,204 |   |
| Other      liabilities                                                                                                                        |   |   | 56,901    |   |   |   | 66,074 |   |
| Total      liabilities                                                                                                                        |   |   | 3,117,766 |   |   |   | 3,080,373 |   |
|                                                                                                                                          |   |   |      |   |   |   |   |   |
| 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, 47,482,161 and      53,779,914 shares issued and outstanding, respectively |   |   | 475       |   |   |   | 538 |   |
| Additional      paid-in capital                                                                                                               |   |   | 1,114,135 |   |   |   | 1,338,466 |   |
| Accumulated      other comprehensive loss                                                                                                     |   |   | (188,987  | )      |   |   | (24,339 | ) |
| Retained      earnings                                                                                                                        |   |   | 883,717   |   |   |   | 683,655 |   |
| Total      shareholders' equity                                                                                                               |   |   | 1,809,397 |   |   |   | 1,998,377 |   |
|                                                                                                                                          |   |   |      |   |   |   |   |   |
| Total      liabilities and shareholders' equity                                                                                               |   | $      | 4,927,163 |   |   | $      | 5,078,750 |   |

----

Consolidated Statements of Operations and ComprehensiveIncome

|                                                                                                      |   | 2008    |      |   | 2007   |   |      | 2006   |   |
|-----------------------------------------------------------------------------------------------------------|--------|---------|-----------|--------|--------|--------|-----------|--------|--------|
|                                                                                                      |   |    |      |   |   |   |      |   |   |
| Revenue:                                                                                                  |   |    |      |   |   |   |      |   |   |
| Net      premiums earned                                                                                  |   | $       | 1,114,796 |   |   |   | 1,173,088 |   |   | $ | 1,336,701 |   |
| Net      investment income                                                                                |   |    | 186,574   |   |   |   | 214,222   |   |   |   | 187,987 |   |
| Net      realized investment gains (losses)                                                               |   |    | 26,568    |   |   |   | (1,222    | )      |   |   | (1,131 | ) |
| Other      income (expense)                                                                               |   |    | 337       |   |   |   | (2,173    | )      |   |   | (651 | ) |
| Total      revenue                                                                                        |   |    | 1,328,275 |   |   |   | 1,383,915 |   |   |   | 1,522,906 |   |
|                                                                                                      |   |    |      |   |   |   |      |   |   |   |   |   |
| Expenses:                                                                                                 |   |    |      |   |   |   |      |   |   |   |   |   |
| Net      losses and loss adjustment expenses                                                              |   |    | 718,233   |   |   |   | 655,487   |   |   |   | 760,602 |   |
| Net      acquisition expenses                                                                             |   |    | 242,715   |   |   |   | 220,330   |   |   |   | 285,923 |   |
| Net      change in fair value of derivatives                                                              |   |    | 14,114    |   |   |   | 5,007     |   |   |   | – |   |
| Operating      expenses                                                                                   |   |    | 88,208    |   |   |   | 103,593   |   |   |   | 95,490 |   |
| Net      foreign currency exchange (gains) losses                                                         |   |    | 6,760     |   |   |   | (2,775    | )      |   |   | (738 | ) |
| Interest      expense                                                                                     |   |    | 19,006    |   |   |   | 21,470    |   |   |   | 21,805 |   |
| Total      expenses                                                                                       |   |    | 1,089,036 |   |   |   | 1,003,112 |   |   |   | 1,163,082 |   |
|                                                                                                      |   |    |      |   |   |   |      |   |   |   |   |   |
| Income      before income tax expense                                                                     |   |    | 239,239   |   |   |   | 380,803   |   |   |   | 359,824 |   |
| Income      tax expense                                                                                   |   |    | 12,999    |   |   |   | 23,825    |   |   |   | 30,167 |   |
|                                                                                                      |   |    |      |   |   |   |      |   |   |   |   |   |
| Net      income                                                                                           |   |    | 226,240   |   |   |   | 356,978   |   |   |   | 329,657 |   |
| Preferred      dividends                                                                                  |   |    | 10,408    |   |   |   | 10,408    |   |   |   | 10,382 |   |
|                                                                                                      |   |    |      |   |   |   |      |   |   |   |   |   |
| Net      income attributable to common shareholders                                                       |   | $       | 215,832   |   |   |   | 346,570   |   |   | $ | 319,275 |   |
|                                                                                                      |   |    |      |   |   |   |      |   |   |   |   |   |
| Earnings per common share:                                                                                |   |    |      |   |   |   |      |   |   |   |   |   |
| Basic      earnings per common share                                                                      |   | $       | 4.38      |   |   |   | 5.91      |   |   | $ | 5.38 |   |
| Diluted      earnings per common share                                                                    |   | $       | 3.98      |   |   |   | 5.38      |   |   | $ | 4.96 |   |
|                                                                                                      |   |    |      |   |   |   |      |   |   |   |   |   |
| Comprehensive income:                                                                                     |   |    |      |   |   |   |      |   |   |   |   |   |
| Net      income                                                                                           |   | $       | 226,240   |   |   |   | 356,978   |   |   | $ | 329,657 |   |
| Other      comprehensive income:                                                                          |   |    |      |   |   |   |      |   |   |   |   |   |
| Net      change in unrealized gains and losses on available-for-sale securities,      net of deferred tax |   |    | (164,648  | )      |   |   | 20,763    |   |   |   | (3,887 | ) |
| Cumulative      translation adjustments, net of deferred tax                                              |   |    | –   |   |   |   | (813      | )      |   |   | 316 |   |
| Comprehensive      income                                                                                 |   | $       | 61,592    |   |   |   | 376,928   |   |   | $ | 326,086 |   |
|                                                                                                      |   |    |      |   |   |   |      |   |   |   |   |   |
| Shareholder dividends:                                                                                    |   |    |      |   |   |   |      |   |   |   |   |   |
| Preferred      dividends declared                                                                         |   | $  | 10,408    |   |   |   | 10,408    |   |   | $  | 9,818 |   |
| Preferred      dividends declared per share                                                               |   |    | 1.81      |   |   |   | 1.81      |   |   |   | 1.71 |   |
| Common      shareholder dividends declared                                                                |   |    | 15,770    |   |   |   | 18,632    |   |   |   | 19,029 |   |
| Dividends      declared per common share                                                                  |   | $       | 0.32      |   |   |   | 0.32      |   |   | $ | 0.32 |   |

----

Shareholders'Equity

|                                                                                                      |   | 2008   |      |   | 2007   |   |      | 2006   |   |
|-----------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
|                                                                                                      |   |   |      |   |   |   |      |   |   |
| Preferred shares:                                                                                         |   |   |      |   |   |   |      |   |   |
| Balances      at beginning and end of year                                                                |   | $      | 57        |   |   |   | 57        |   |   | $ | 57 |   |
|                                                                                                      |   |   |      |   |   |   |      |   |   |   |   |   |
| Common shares:                                                                                            |   |   |      |   |   |   |      |   |   |   |   |   |
| Balances      at beginning of year                                                                        |   |   | 538       |   |   |   | 597       |   |   |   | 590 |   |
| Exercise      of common share options                                                                     |   |   | 12        |   |   |   | 9         |   |   |   | 6 |   |
| Issuance      of common shares                                                                            |   |   | 3         |   |   |   | 1         |   |   |   | 1 |   |
| Purchase      of common shares                                                                            |   |   | (78       | )      |   |   | (69       | )      |   |   | – |   |
| Balances      at end of year                                                                              |   |   | 475       |   |   |   | 538       |   |   |   | 597 |   |
|                                                                                                      |   |   |      |   |   |   |      |   |   |   |   |   |
| Additional paid-in-capital:                                                                               |   |   |      |   |   |   |      |   |   |   |   |   |
| Balances      at beginning of year                                                                        |   |   | 1,338,466 |   |   |   | 1,545,979 |   |   |   | 1,527,316 |   |
| Transfer      of unearned common share grant compensation                                                 |   |   | –   |   |   |   | –   |   |   |   | (2,467 | ) |
| Exercise      of common share options                                                                     |   |   | 25,929    |   |   |   | 23,426    |   |   |   | 12,969 |   |
| Issuance      of common shares                                                                            |   |   | 1,693     |   |   |   | –   |   |   |   | – |   |
| Share      based compensation                                                                             |   |   | 14,319    |   |   |   | 8,813     |   |   |   | 7,995 |   |
| Settlement      of equity awards                                                                          |   |   | (999      | )      |   |   | –   |   |   |   | – |   |
| Purchase      of common shares                                                                            |   |   | (266,483  | )      |   |   | (240,603  | )      |   |   | – |   |
| Tax      benefit of share options                                                                         |   |   | 1,210     |   |   |   | 851       |   |   |   | 166 |   |
| Balances      at end of year                                                                              |   |   | 1,114,135 |   |   |   | 1,338,466 |   |   |   | 1,545,979 |   |
|                                                                                                      |   |   |      |   |   |   |      |   |   |   |   |   |
| Unearned share grant      compensation:                                                                   |   |   |      |   |   |   |      |   |   |   |   |   |
| Balances      at beginning of year                                                                        |   |   | –   |   |   |   | –   |   |   |   | (2,467 | ) |
| Transfer      of unearned common share grant compensation                                                 |   |   | –   |   |   |   | –   |   |   |   | 2,467 |   |
| Balances      at end of year                                                                              |   |   | –   |   |   |   | –   |   |   |   | – |   |
|                                                                                                      |   |   |      |   |   |   |      |   |   |   |   |   |
| Accumulated other comprehensive income      (loss):                                                       |   |   |      |   |   |   |      |   |   |   |   |   |
| Balances      at beginning of year                                                                        |   |   | (24,339   | )      |   |   | (44,289   | )      |   |   | (40,718 | ) |
| Net      change in unrealized gains and losses on available-for-sale securities,      net of deferred tax |   |   | (164,648  | )      |   |   | 20,763    |   |   |   | (3,887 | ) |
| Net      change in cumulative translation adjustments, net of deferred      tax                           |   |   | –   |   |   |   | (813      | )      |   |   | 316 |   |
| Balances      at end of year                                                                              |   |   | (188,987  | )      |   |   | (24,339   | )      |   |   | (44,289 | ) |
|                                                                                                      |   |   |      |   |   |   |      |   |   |   |   |   |
| Retained earnings:                                                                                        |   |   |      |   |   |   |      |   |   |   |   |   |
| Balances      at beginning of year                                                                        |   |   | 683,655   |   |   |   | 355,717   |   |   |   | 55,471 |   |
| Net      income                                                                                           |   |   | 226,240   |   |   |   | 356,978   |   |   |   | 329,657 |   |
| Preferred      share dividends                                                                            |   |   | (10,408   | )      |   |   | (10,408   | )      |   |   | (10,382 | ) |
| Common      share dividends                                                                               |   |   | (15,770   | )      |   |   | (18,632   | )      |   |   | (19,029 | ) |
| Balances      at end of year                                                                              |   |   | 883,717   |   |   |   | 683,655   |   |   |   | 355,717 |   |
|                                                                                                      |   |   |      |   |   |   |      |   |   |   |   |   |
| Total      shareholders’ equity                                                                     |   | $      | 1,809,397 |   |   |   | 1,998,377 |   |   | $ | 1,858,061 |   |

----

Consolidated Statements of Cash Flows

|                                                                    |   | 2008   |       |   | 2007   |   |       | 2006   |   |
|-------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
|                                                                    |   |   |       |   |   |   |       |   |   |
| Operating Activities:                                                   |   |   |       |   |   |   |       |   |   |
| Net      income                                                         |   | $      | 226,240    |   |   |   | 356,978    |   |   | $ | 329,657 |   |
| Adjustments      to reconcile net income to cash used in operations:    |   |   |       |   |   |   |       |   |   |   |   |   |
| Depreciation      and amortization                                      |   |   | 9,184      |   |   |   | 12,182     |   |   |   | 16,213 |   |
| Net      realized investment (gains) losses                             |   |   | (26,568    | )      |   |   | 1,222      |   |   |   | 1,131 |   |
| Net      foreign currency exchange (gains) losses                       |   |   | 6,760      |   |   |   | (2,775     | )      |   |   | (738 | ) |
| Share      based compensation                                           |   |   | 14,319     |   |   |   | 9,129      |   |   |   | 7,995 |   |
| Deferred      income tax benefit                                        |   |   | (14,433    | )      |   |   | (13,283    | )      |   |   | (2,613 | ) |
| Trading      securities activities, net                                 |   |   | (147,124   | )      |   |   | (46,528    | )      |   |   | (445 | ) |
| Changes      in assets and liabilities:                                 |   |   |       |   |   |   |       |   |   |   |   |   |
| (Increase)      decrease in accrued investment income                   |   |   | 5,655      |   |   |   | (2,014     | )      |   |   | (3,452 | ) |
| (Increase)      decrease in reinsurance premiums receivable             |   |   | (67,366    | )      |   |   | 136,395    |   |   |   | 195,094 |   |
| Decrease      in funds held by ceding companies                         |   |   | 29,326     |   |   |   | 72,895     |   |   |   | 53,130 |   |
| Decrease      in deferred acquisition costs                             |   |   | 19,789     |   |   |   | 12,102     |   |   |   | 48,190 |   |
| Increase      in net unpaid losses and loss adjustment expenses         |   |   | 144,092    |   |   |   | 10,048     |   |   |   | 37,188 |   |
| Decrease      in net unearned premiums                                  |   |   | (81,136    | )      |   |   | (50,983    | )      |   |   | (154,007 | ) |
| Decrease      in ceded premiums payable                                 |   |   | (1,641     | )      |   |   | (13,038    | )      |   |   | (4,947 | ) |
| Increase      (decrease) in commissions payable                         |   |   | 25,347     |   |   |   | (40,631    | )      |   |   | (45,819 | ) |
| (Increase)      decrease in income tax recoverable                      |   |   | (7,783     | )      |   |   | 5,476      |   |   |   | 17,174 |   |
| Changes      in other assets and liabilities                            |   |   | (5,498     | )      |   |   | (4,462     | )      |   |   | 33,457 |   |
| Other      net                                                          |   |   | (264       | )      |   |   | (1,158     | )      |   |   | (62 | ) |
| Net      cash provided by operating activities                          |   |   | 128,899    |   |   |   | 441,555    |   |   |   | 527,146 |   |
|                                                                    |   |   |       |   |   |   |       |   |   |   |   |   |
| Investing Activities:                                                   |   |   |       |   |   |   |       |   |   |   |   |   |
| Proceeds      from sale of available-for-sale securities                |   |   | 1,536,751  |   |   |   | 248,341    |   |   |   | 348,142 |   |
| Proceeds      from sale of preferred stocks                             |   |   | 120        |   |   |   | –    |   |   |   | – |   |
| Proceeds      from maturity or paydown of available-for-sale securities |   |   | 962,760    |   |   |   | 1,453,687  |   |   |   | 270,939 |   |
| Proceeds      from sale of other invested asset                         |   |   | –    |   |   |   | 4,745      |   |   |   | – |   |
| Acquisition      of available-for-sale securities                       |   |   | (2,557,648 | )      |   |   | (1,650,626 | )      |   |   | (1,083,282 | ) |
| Net      change in short-term investments                               |   |   | (59,251    | )      |   |   | 14,035     |   |   |   | (15,822 | ) |
| Net      cash provided by (used in) investing activities                |   |   | (117,268   | )      |   |   | 70,182     |   |   |   | (480,023 | ) |
|                                                                    |   |   |       |   |   |   |       |   |   |   |   |   |
| Financing Activities:                                                   |   |   |       |   |   |   |       |   |   |   |   |   |
| Dividends      paid to preferred shareholders                           |   |   | (10,408    | )      |   |   | (10,408    | )      |   |   | (9,818 | ) |
| Dividends      paid to common shareholders                              |   |   | (15,770    | )      |   |   | (18,632    | )      |   |   | (19,029 | ) |
| Proceeds      from exercise of share options                            |   |   | 25,941     |   |   |   | 23,435     |   |   |   | 12,975 |   |
| Purchase      of common shares                                          |   |   | (266,561   | )      |   |   | (240,672   | )      |   |   | – |   |
| Repayment      of debt obligations                                      |   |   | –    |   |   |   | (42,840    | )      |   |   | – |   |
| Net      cash used in financing activities                              |   |   | (266,798   | )      |   |   | (289,117   | )      |   |   | (15,872 | ) |
|                                                                    |   |   |       |   |   |   |       |   |   |   |   |   |
| Effect      of foreign currency exchange rate changes on cash           |   |   | (8,095     | )      |   |   | 2,007      |   |   |   | (345 | ) |
|                                                                    |   |   |       |   |   |   |       |   |   |   |   |   |
| Net      increase (decrease) in cash and cash equivalents               |   |   | (263,262   | )      |   |   | 224,627    |   |   |   | 30,906 |   |
|                                                                    |   |   |       |   |   |   |       |   |   |   |   |   |
| Cash      and cash equivalents at beginning of year                     |   |   | 1,076,279  |   |   |   | 851,652    |   |   |   | 820,746 |   |
|                                                                    |   |   |       |   |   |   |       |   |   |   |   |   |
| Cash      and cash equivalents at end of year                           |   | $      | 813,017    |   |   |   | 1,076,279  |   |   | $ | 851,652 |   |
|                                                                    |   |   |       |   |   |   |       |   |   |   |   |   |
| Supplemental disclosures of cash flow      information:                 |   |   |       |   |   |   |       |   |   |   |   |   |
| Income      taxes paid                                                  |   | $      | 33,561     |   |   |   | 29,160     |   |   | $ | 15,602 |   |
| Interest      paid                                                      |   | $      | 18,750     |   |   |   | 21,479     |   |   | $ | 21,479 |   |

----

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

----

----

----

----

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

|                                                    |   | Amortized      Cost |      |   | GrossUnrealizedGains |   |    | GrossUnrealizedLosses |   |   | Fair      Value |   |
|---------------------------------------------------------|--------|---------------------|-----------|--------|----------------------|--------|---------|-----------------------|--------|--------|-----------------|--------|
|                                                    |   |                |      |   |                 |   |    |                  |   |   |            |   |
| December 31, 2008:                                 |   |                |      |   |                 |   |    |                  |   |   |            |   |
| U.S.      Government                                    |   | $                   | 4,096     |   |                 |   | 545     |                  |   |   | –         |   |   | $ | 4,641 |   |
| U.S.      Government agencies                           |   |                | 786,848   |   |                 |   | 24,679  |                  |   |   | 38              |   |   |   | 811,489 |   |
| Corporate      bonds                                    |   |                | 728,792   |   |                 |   | 4,134   |                  |   |   | 42,398          |   |   |   | 690,528 |   |
| Mortgage-backed      and asset-backed securities        |   |                | 1,278,229 |   |                 |   | 11,563  |                  |   |   | 204,834         |   |   |   | 1,084,958 |   |
| Municipal      bonds                                    |   |                | 390,342   |   |                 |   | 6,484   |                  |   |   | 3,342           |   |   |   | 393,484 |   |
| Non-U.S. governments      and states               |   |                | 79,264    |   |                 |   | 1,093   |                  |   |   | 1,653           |   |   |   | 78,704 |   |
| Total      fixed maturity available-for-sale securities |   |                | 3,267,571 |   |                 |   | 48,498  |                  |   |   | 252,265         |   |   |   | 3,063,804 |   |
| Preferred      stocks                                   |   |                | 3,087     |   |                 |   | – |                  |   |   | 242             |   |   |   | 2,845 |   |
| Total      available-for-sale securities                |   | $                   | 3,270,658 |   |                 |   | 48,498  |                  |   |   | 252,507         |   |   | $ | 3,066,649 |   |
|                                                    |   |                |      |   |                 |   |    |                  |   |   |            |   |   |   |   |   |
| December 31, 2007:                                 |   |                |      |   |                 |   |    |                  |   |   |            |   |   |   |   |   |
| U.S.      Government                                    |   | $                   | 94,738    |   |                 |   | 2,083   |                  |   |   | 69              |   |   | $ | 96,752 |   |
| U.S.      Government agencies                           |   |                | 576,464   |   |                 |   | 3,402   |                  |   |   | 100             |   |   |   | 579,766 |   |
| Corporate      bonds                                    |   |                | 818,363   |   |                 |   | 1,853   |                  |   |   | 17,829          |   |   |   | 802,387 |   |
| Mortgage-backed      and asset-backed securities        |   |                | 1,401,486 |   |                 |   | 7,694   |                  |   |   | 20,938          |   |   |   | 1,388,242 |   |
| Municipal      bonds                                    |   |                | 282,029   |   |                 |   | 1,687   |                  |   |   | 755             |   |   |   | 282,961 |   |
| Non-U.S. governments      and states               |   |                | 41,901    |   |                 |   | 92      |                  |   |   | 178             |   |   |   | 41,815 |   |
| Total      fixed maturity available-for-sale securities |   |                | 3,214,981 |   |                 |   | 16,811  |                  |   |   | 39,869          |   |   |   | 3,191,923 |   |
| Preferred      stocks                                   |   |                | 12,246    |   |                 |   | 18      |                  |   |   | 2,657           |   |   |   | 9,607 |   |
| Total      available-for-sale securities                |   | $                   | 3,227,227 |   |                 |   | 16,829  |                  |   |   | 42,526          |   |   | $ | 3,201,530 |   |

|                                              |   | Fair      Value at December 31, |    |
|---------------------------------------------------|--------|---------------------------------|---------|
|                                              |   | 2008                            |    |   | 2007 |   |
|                                              |   |                            |    |   |   |   |
| U.S.      Government                              |   | $                               | 196,383 |   |   | $ | – |   |
| Non-U.S.      dollar denominated securities: |   |                            |    |   |   |   |   |   |
| Corporate      bonds                              |   |                            | 4,125   |   |   |   | 19,349 |   |
| Non-U.S. governments      and states         |   |                            | 104,729 |   |   |   | 150,469 |   |
| Total      trading securities                     |   | $                               | 305,237 |   |   | $ | 169,818 |   |

----

|                                           |   | 2008   |     |   | 2007   |   |   | 2006   |   |
|------------------------------------------------|--------|--------|----------|--------|--------|--------|--------|--------|--------|
|                                           |   |   |     |   |   |   |   |   |   |
| Available      for sale securities             |   | $      | (178,318 | )      |   |   | 25,394 |   |   | $ | (3,311 | ) |
| Less      deferred tax                         |   |   | 13,670   |   |   |   | (4,631 | )      |   |   | (576 | ) |
| Net      change in unrealized gains and losses |   | $      | (164,648 | )      |   |   | 20,763 |   |   | $ | (3,887 | ) |

|                                             |   | December      31, 2008 |      |   | December      31, 2007 |   |
|--------------------------------------------------|--------|------------------------|-----------|--------|------------------------|--------|
|                                             |   | Fair      Value        |      |   | UnrealizedLoss         |   |   | Fair      Value |   |   | UnrealizedLoss |   |
|                                             |   |                   |      |   |                   |   |   |   |   |   |   |   |
| Less than twelve months:                         |   |                   |      |   |                   |   |   |   |   |   |   |   |
| U.S.      government                             |   | $                 | –   |   |                   |   | – |   |   |   | – |   |   | $ | – |   |
| U.S.      government agencies                    |   |                   | 14,313    |   |                   |   | 38 |   |   |   | 52,470 |   |   |   | 39 |   |
| Corporate      bonds                             |   |                   | 316,883   |   |                   |   | 16,413 |   |   |   | 160,173 |   |   |   | 3,754 |   |
| Mortgage-backed      and asset-backed securities |   |                   | 471,018   |   |                   |   | 120,051 |   |   |   | 286,805 |   |   |   | 8,544 |   |
| Municipal      bonds                             |   |                   | 77,244    |   |                   |   | 2,536 |   |   |   | 2,851 |   |   |   | 4 |   |
| Non-U.S. governments      and states        |   |                   | 29,033    |   |                   |   | 1,396 |   |   |   | 5,807 |   |   |   | 31 |   |
| Preferred      stocks                            |   |                   | 2,845     |   |                   |   | 242 |   |   |   | – |   |   |   | – |   |
| Total                                            |   | $                      | 911,336   |   |                   |   | 140,676 |   |   |   | 508,106 |   |   | $ | 12,372 |   |
|                                             |   |                   |      |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Twelve months or more:                           |   |                   |      |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| U.S.      government                             |   | $                 | –   |   |                   |   | – |   |   |   | 2,604 |   |   | $  | 69 |   |
| U.S.      government agencies                    |   |                   | –   |   |                   |   | – |   |   |   | 11,074 |   |   |   | 61 |   |
| Corporate      bonds                             |   |                   | 155,082   |   |                   |   | 25,985 |   |   |   | 442,519 |   |   |   | 14,075 |   |
| Mortgage-backed      and asset-backed securities |   |                   | 151,949   |   |                   |   | 84,783 |   |   |   | 476,690 |   |   |   | 12,394 |   |
| Municipal      bonds                             |   |                   | 7,726     |   |                   |   | 806 |   |   |   | 106,687 |   |   |   | 751 |   |
| Non-U.S. governments      and states        |   |                   | 1,463     |   |                   |   | 257 |   |   |   | 13,981 |   |   |   | 147 |   |
| Preferred      stocks                            |   |                   | –   |   |                   |   | – |   |   |   | 8,589 |   |   |   | 2,657 |   |
| Total                                            |   | $                      | 316,220   |   |                   |   | 111,831 |   |   |   | 1,062,144 |   |   | $ | 30,154 |   |
|                                             |   |                   |      |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Total unrealized losses:                         |   |                   |      |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| U.S.      government                             |   | $                 | –   |   |                   |   | – |   |   |   | 2,604 |   |   | $  | 69 |   |
| U.S.      government agencies                    |   |                   | 14,313    |   |                   |   | 38 |   |   |   | 63,544 |   |   |   | 100 |   |
| Corporate      bonds                             |   |                   | 471,965   |   |                   |   | 42,398 |   |   |   | 602,692 |   |   |   | 17,829 |   |
| Mortgage-backed      and asset-backed securities |   |                   | 622,967   |   |                   |   | 204,834 |   |   |   | 763,495 |   |   |   | 20,938 |   |
| Municipal      bonds                             |   |                   | 84,970    |   |                   |   | 3,342 |   |   |   | 109,538 |   |   |   | 755 |   |
| Non-U.S. governments      and states        |   |                   | 30,496    |   |                   |   | 1,653 |   |   |   | 19,788 |   |   |   | 178 |   |
| Preferred      stocks                            |   |                   | 2,845     |   |                   |   | 242 |   |   |   | 8,589 |   |   |   | 2,657 |   |
| Total                                            |   | $                      | 1,227,556 |   |                   |   | 252,507 |   |   |   | 1,570,250 |   |   | $ | 42,526 |   |

----

|                                                      |   | 2008   |    |   | 2007   |   |    | 2006   |   |
|-----------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|                                                      |   |   |    |   |   |   |    |   |   |
| Fixed      maturity securities                            |   | $      | 162,857 |   |   |   | 169,745 |   |   | $ | 148,708 |   |
| Short-term      investments and cash and cash equivalents |   |   | 24,340  |   |   |   | 44,480  |   |   |   | 35,684 |   |
| Funds      held                                           |   |   | 3,476   |   |   |   | 5,279   |   |   |   | 7,998 |   |
| Subtotal                                                  |   |   | 190,673 |   |   |   | 219,504 |   |   |   | 192,390 |   |
| Less      investment expenses                             |   |   | 4,099   |   |   |   | 5,282   |   |   |   | 4,403 |   |
| Net      investment income                                |   | $      | 186,574 |   |   |   | 214,222 |   |   | $ | 187,987 |   |

----

|                                                  |   | 2008   |    |   | 2007   |   |   | 2006   |   |
|-------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|
| Net      gains (losses) on the sale of investments:   |   |   |    |   |   |   |   |   |   |
| Gross      realized gains                             |   | $      | 53,178  |   |   |   | 52     |   |   | $ | 1,592 |   |
| Gross      realized losses                            |   |   | (5,605  | )      |   |   | (1,858 | )      |   |   | (502 | ) |
| Subtotal                                              |   |   | 47,573  |   |   |   | (1,806 | )      |   |   | 1,090 |   |
|                                                  |   |   |    |   |   |   |   |   |   |   |   |   |
| Mark-to-market      adjustments on trading securities |   |   | 9,681   |   |   |   | 1,393  |   |   |   | (2,221 | ) |
|                                                  |   |   |    |   |   |   |   |   |   |   |   |   |
| Other-than-temporary      impairments                 |   |   | (30,686 | )      |   |   | (809   | )      |   |   | – |   |
|                                                  |   |   |    |   |   |   |   |   |   |   |   |   |
| Net      realized investment gains (losses)           |   | $      | 26,568  |   |   |   | (1,222 | )      |   | $ | (1,131 | ) |

|                                             |   | AmortizedCost |      |   | Fair      Value |   |
|--------------------------------------------------|--------|---------------|-----------|--------|-----------------|--------|
|                                             |   |          |      |   |            |   |
| Due      in one year or less                     |   | $             | 225,007   |   |            | $      | 224,945 |   |
| Due      from one to five years                  |   |          | 1,438,537 |   |            |   | 1,457,471 |   |
| Due      from five to ten years                  |   |          | 377,381   |   |            |   | 377,952 |   |
| Due      in ten or more years                    |   |          | 245,254   |   |            |   | 223,715 |   |
| Mortgage-backed      and asset-backed securities |   |          | 1,278,229 |   |            |   | 1,084,958 |   |
| Total                                            |   | $             | 3,564,408 |   |            | $      | 3,369,041 |   |

----

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

|                           |   | December 31,      2008 |      |   | December 31,      2007 |   |
|--------------------------------|--------|-----------------------------|-----------|--------|-----------------------------|--------|
|                           |   | CarryingAmount              |      |   | FairValue                   |   |   | CarryingAmount |   |   | FairValue |   |
|                           |   |                        |      |   |                        |   |   |   |   |   |   |   |
| Financial assets:              |   |                        |      |   |                        |   |   |   |   |   |   |   |
| Fixed      maturity securities |   | $                           | 3,369,041 |   |                        |   | 3,369,041 |   |   |   | 3,361,741 |   |   | $ | 3,361,741 |   |
| Preferred      stocks          |   |                        | 2,845     |   |                        |   | 2,845 |   |   |   | 9,607 |   |   |   | 9,607 |   |
| Short-term      investments    |   |                        | 75,036    |   |                        |   | 75,036 |   |   |   | 13,876 |   |   |   | 13,876 |   |
|                           |   |                        |      |   |                        |   |   |   |   |   |   |   |   |   |   |   |
| Financial liabilities:         |   |                        |      |   |                        |   |   |   |   |   |   |   |   |   |   |   |
| Debt      obligations          |   | $                           | 250,000   |   |                        |   | 200,350 |   |   |   | 250,000 |   |   | $ | 253,800 |   |
| Derivative      instruments    |   |                        | 4,753     |   |                        |   | 4,753 |   |   |   | – |   |   |   | – |   |

|                                              |   |   |      |   | Fair      Value Measurement Using: |   |
|---------------------------------------------------|--------|--------|-----------|--------|------------------------------------|--------|
|                                              |   | Total  |      |   | Level      1                       |   |   | Level      2 |   |   | Level      3 |   |
|                                              |   |   |      |   |                               |   |   |   |   |   |   |   |
| Financial      assets:                            |   |   |      |   |                               |   |   |   |   |   |   |   |
| Fixed      maturity available-for-sale securities |   | $      | 3,063,804 |   |                               |   | 29,695 |   |   |   | 3,034,109 |   |   | $ | – |   |
| Fixed      maturity trading securities            |   |   | 305,237   |   |                               |   | 229,526 |   |   |   | 75,711 |   |   |   | – |   |
| Preferred      stocks                             |   |   | 2,845     |   |                               |   | 2,845 |   |   |   | – |   |   |   | – |   |
| Short-term      investments                       |   |   | 75,036    |   |                               |   | – |   |   |   | 75,036 |   |   |   | – |   |
| Total                                             |   | $      | 3,446,922 |   |                               |   | 262,066 |   |   |   | 3,184,856 |   |   | $ | – |   |
|                                              |   |   |      |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Financial      liabilities:                       |   |   |      |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Derivative      instruments                       |   |   | 4,753     |   |                               |   | – |   |   |   | – |   |   |   | 4,753 |   |
| Total                                             |   | $      | 4,753     |   |                               |   | – |   |   |   | – |   |   | $ | 4,753 |   |

----

| Beginning      balance at January 1, 2008                                                                      |   | $      | – |   |
|---------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|
| Purchases,      issuances, and settlements                                                                          |   |   | 9,361   |   |
| Total      unrealized and realized losses included in earnings                                                      |   |   | (14,114 | )      |
| Ending      balance at December 31, 2008                                                                       |   |   | (4,753  | )      |
|                                                                                                                |   |   |    |   |
| Losses      for the period attributable to the change in unrealized losses relating to      liabilities outstanding |   | $      | 7,154   |   |

| 4. | Derivative      Contracts |
|----|---------------------------|

----

| 5. | Unpaid Losses and      LAE |
|----|----------------------------|

|                                                       |   | 2008   |      |   | 2007   |   |      | 2006   |   |
|------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
|                                                       |   |   |      |   |   |   |      |   |   |
| Net      unpaid losses and LAE as of January 1,            |   | $      | 2,342,185 |   |   |   | 2,326,227 |   |   | $ | 2,268,655 |   |
|                                                       |   |   |      |   |   |   |      |   |   |   |   |   |
| Net      incurred related to:                              |   |   |      |   |   |   |      |   |   |   |   |   |
| Current      year                                          |   |   | 878,169   |   |   |   | 745,865   |   |   |   | 811,250 |   |
| Prior      years                                           |   |   | (159,936  | )      |   |   | (90,378   | )      |   |   | (50,648 | ) |
| Total      incurred net losses and LAE                     |   |   | 718,233   |   |   |   | 655,487   |   |   |   | 760,602 |   |
|                                                       |   |   |      |   |   |   |      |   |   |   |   |   |
| Net      paid losses and LAE:                              |   |   |      |   |   |   |      |   |   |   |   |   |
| Current      year                                          |   |   | 148,355   |   |   |   | 73,402    |   |   |   | 96,112 |   |
| Prior      year                                            |   |   | 433,961   |   |   |   | 578,611   |   |   |   | 624,477 |   |
| Total      net paid losses and LAE                         |   |   | 582,316   |   |   |   | 652,013   |   |   |   | 720,589 |   |
|                                                       |   |   |      |   |   |   |      |   |   |   |   |   |
| Net      effects of foreign currency exchange rate changes |   |   | (26,057   | )      |   |   | 12,484    |   |   |   | 17,559 |   |
|                                                       |   |   |      |   |   |   |      |   |   |   |   |   |
| Net      unpaid losses and LAE as of December 31,          |   |   | 2,452,045 |   |   |   | 2,342,185 |   |   |   | 2,326,227 |   |
|                                                       |   |   |      |   |   |   |      |   |   |   |   |   |
| Reinsurance      recoverable on unpaid losses and LAE      |   |   | 11,461    |   |   |   | 18,853    |   |   |   | 42,255 |   |
| Gross      unpaid losses and LAE as of December 31,        |   | $      | 2,463,506 |   |   |   | 2,361,038 |   |   | $ | 2,368,482 |   |

----

| 6. | Retrocessional      Reinsurance |
|----|---------------------------------|

|                                                      |   | Assumed |      |   | Ceded  |   |   | Net    |   |
|-----------------------------------------------------------|--------|---------|-----------|--------|--------|--------|--------|--------|--------|
|                                                      |   |    |      |   |   |   |   |   |   |
| As of and for the year ended December 31,      2008: |   |    |      |   |   |   |   |   |   |
| Premiums      written                                     |   | $       | 1,066,616 |   |   |   | 29,051 |   |   | $ | 1,037,565 |   |
| Premiums      earned                                      |   |    | 1,142,305 |   |   |   | 27,509 |   |   |   | 1,114,796 |   |
| Losses      and LAE                                       |   |    | 723,876   |   |   |   | 5,643  |   |   |   | 718,233 |   |
| Unpaid      losses and LAE                                |   |    | 2,463,506 |   |   |   | 11,461 |   |   |   | 2,452,045 |   |
|                                                      |   |    |      |   |   |   |   |   |   |   |   |   |
| As of and for the year ended December 31,      2007: |   |    |      |   |   |   |   |   |   |   |   |   |
| Premiums      written                                     |   |    | 1,140,303 |   |   |   | 20,496 |   |   |   | 1,119,807 |   |
| Premiums      earned                                      |   |    | 1,193,894 |   |   |   | 20,806 |   |   |   | 1,173,088 |   |
| Losses      and LAE                                       |   |    | 646,992   |   |   |   | (8,495 | )      |   |   | 655,487 |   |
| Unpaid      losses and LAE                                |   |    | 2,361,038 |   |   |   | 18,853 |   |   |   | 2,342,185 |   |
|                                                      |   |    |      |   |   |   |   |   |   |   |   |   |
| As of and for the year ended December 31,      2006: |   |    |      |   |   |   |   |   |   |   |   |   |
| Premiums      written                                     |   |    | 1,275,200 |   |   |   | 98,587 |   |   |   | 1,176,613 |   |
| Premiums      earned                                      |   |    | 1,434,282 |   |   |   | 97,581 |   |   |   | 1,336,701 |   |
| Losses      and LAE                                       |   |    | 778,836   |   |   |   | 18,234 |   |   |   | 760,602 |   |
| Unpaid      losses and LAE                                |   | $       | 2,368,482 |   |   |   | 42,255 |   |   | $ | 2,326,227 |   |

----

|                                                |   | 2008   |    |   | 2007   |   |    | 2006   |   |
|-----------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|                                                |   |   |    |   |   |   |    |   |   |
| Retroceded by Platinum US to Platinum      Bermuda: |   |   |    |   |   |   |    |   |   |
| Premiums      earned                                |   | $      | 202,792 |   |   |   | 423,218 |   |   | $ | 666,331 |   |
| Incurred      losses and LAE                        |   |   | 132,427 |   |   |   | 273,418 |   |   |   | 457,447 |   |
|                                                |   |   |    |   |   |   |    |   |   |   |   |   |
| Retroceded by Platinum UK to Platinum      Bermuda: |   |   |    |   |   |   |    |   |   |   |   |   |
| Premiums      earned                                |   |   | – |   |   |   | – |   |   |   | 79,173 |   |
| Incurred      losses and LAE                        |   |   | – |   |   |   | – |   |   |   | 28,113 |   |
|                                                |   |   |    |   |   |   |    |   |   |   |   |   |
| Retroceded by Platinum Bermuda to Platinum      UK: |   |   |    |   |   |   |    |   |   |   |   |   |
| Premiums      earned                                |   |   | – |   |   |   | – |   |   |   | 4,583 |   |
| Incurred      losses and LAE                        |   |   | – |   |   |   | (595    | )      |   |   | 19,678 |   |
|                                                |   |   |    |   |   |   |    |   |   |   |   |   |
| Retroceded by Platinum UK to Platinum      US:      |   |   |    |   |   |   |    |   |   |   |   |   |
| Premiums      earned                                |   |   | – |   |   |   | – |   |   |   | 250 |   |
| Incurred      losses and LAE                        |   |   | – |   |   |   | – |   |   |   | – |   |
|                                                |   |   |    |   |   |   |    |   |   |   |   |   |
| Retroceded by Platinum Bermuda to Platinum      US: |   |   |    |   |   |   |    |   |   |   |   |   |
| Premiums      earned                                |   |   | 1,875   |   |   |   | 1,623   |   |   |   | 977 |   |
| Incurred      losses and LAE                        |   | $      | – |   |   |   | – |   |   | $ | – |   |

----

| 7. | Debt and Credit      Facility |
|----|-------------------------------|

| 8. | Income      Taxes |
|----|-------------------|

----

|                                  |   | 2008   |    |   | 2007   |   |    | 2006   |   |
|---------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|                                  |   |   |    |   |   |   |    |   |   |
| United      States                    |   | $      | 36,568  |   |   |   | 63,710  |   |   | $ | 75,374 |   |
| Bermuda                               |   |   | 201,976 |   |   |   | 303,129 |   |   |   | 263,327 |   |
| Other                                 |   |   | 695     |   |   |   | 13,964  |   |   |   | 21,123 |   |
| Income      before income tax expense |   | $      | 239,239 |   |   |   | 380,803 |   |   | $ | 359,824 |   |

|                      |   | 2008   |    |   | 2007   |   |    | 2006   |   |
|---------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|                      |   |   |    |   |   |   |    |   |   |
| Current      tax expense  |   | $      | 27,432  |   |   |   | 37,037  |   |   | $ | 32,780 |   |
| Deferred      tax benefit |   |   | (14,433 | )      |   |   | (13,212 | )      |   |   | (2,613 | ) |
| Total                     |   | $      | 12,999  |   |   |   | 23,825  |   |   | $ | 30,167 |   |

|                                                                 |   | 2008   |    |   | 2007   |   |     | 2006   |   |
|----------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|----------|--------|--------|
|                                                                 |   |   |    |   |   |   |     |   |   |
| Expected      income tax expense at 35%                              |   | $      | 83,734  |   |   |   | 133,281  |   |   | $ | 125,938 |   |
| Effect      of income or loss subject to tax at rates other than 35% |   |   | (71,029 | )      |   |   | (112,768 | )      |   |   | (93,347 | ) |
| Tax      exempt investment income                                    |   |   | (4,071  | )      |   |   | (1,460   | )      |   |   | (2,062 | ) |
| U.S.      withholding taxes                                          |   |   | 600     |   |   |   | 175      |   |   |   | (450 | ) |
| Other,      net                                                      |   |   | 3,765   |   |   |   | 4,597    |   |   |   | 88 |   |
| Income      tax expense                                              |   | $      | 12,999  |   |   |   | 23,825   |   |   | $ | 30,167 |   |

|                                                  |   | 2008   |    |   | 2007   |   |
|-------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                  |   |   |    |   |   |   |
| Deferred tax assets:                                  |   |   |    |   |   |   |
| Unpaid      losses and LAE                            |   | $      | 51,548  |   |   | $      | 41,312 |   |
| Temporary      differences in recognition of expenses |   |   | 3,908   |   |   |   | 1,780 |   |
| Unearned      premiums                                |   |   | 10,666  |   |   |   | 8,727 |   |
| Net      unrealized losses on investments             |   |   | 15,022  |   |   |   | 1,353 |   |
| Other                                                 |   |   | 3,488   |   |   |   | – |   |
| Total      deferred tax assets                        |   | $      | 84,632  |   |   | $      | 53,172 |   |
|                                                  |   |   |    |   |   |   |   |   |
| Deferred tax liabilities:                             |   |   |    |   |   |   |   |   |
| Deferred      acquisition costs                       |   |   | 13,188  |   |   |   | 9,188 |   |
| Other                                                 |   |   | – |   |   |   | 642 |   |
| Total      deferred tax liabilities                   |   |   | 13,188  |   |   |   | 9,830 |   |
|                                                  |   |   |    |   |   |   |   |   |
| Net      deferred tax assets                          |   | $      | 71,444  |   |   | $      | 43,342 |   |

----

| 9. | Shareholders' Equity      and Regulation |
|----|------------------------------------------|

|                                                                                      |   | 2008   |     |   | 2007   |   |       | 2006   |   |
|-------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|------------|--------|--------|
|                                                                                      |   |   |     |   |   |   |       |   |   |
| Before tax amounts:                                                                       |   |   |     |   |   |   |       |   |   |
| Foreign      currency translation adjustment                                              |   | $      | –  |   |   |   | (1,161     | )      |   | $ | 452 |   |
| Net      change in unrealized holding gains and losses arising during the      period     |   |   | (153,089 | )      |   |   | 23,319     |   |   |   | (1,786 | ) |
| Less:      reclassification adjustment for net gains (losses) realized in net      income |   |   | 25,228   |   |   |   | (2,076     | )      |   |   | 1,522 |   |
| Other      comprehensive income (loss) before tax                                         |   |   | (178,317 | )      |   |   | 24,234     |   |   |   | (2,856 | ) |
|                                                                                      |   |   |     |   |   |   |       |   |   |   |   |   |
| Deferred income tax (expense) benefit      on:                                            |   |   |     |   |   |   |       |   |   |   |   |   |
| Foreign      currency translation adjustment                                              |   |   | –  |   |   |   | 348        |   |   |   | (136 | ) |
| Net      change in unrealized holding gains and losses arising during the      period     |   |   | 8,563    |   |   |   | (4,511     | )      |   |   | (654 | ) |
| Less:      reclassification adjustment for net gains (losses) realized in net      income |   |   | (5,106   | )      |   |   | 121        |   |   |   | (75 | ) |
| Deferred      tax on other comprehensive income (loss)                                    |   |   | 13,669   |   |   |   | (4,284     | )      |   |   | (      715 | ) |
|                                                                                      |   |   |     |   |   |   |       |   |   |   |   |   |
| Net of tax amounts:                                                                       |   |   |     |   |   |   |       |   |   |   |   |   |
| Net      foreign currency translation adjustment                                          |   |   | –  |   |   |   | (      813 | )      |   |   | 316 |   |
| Net      change in unrealized holding gains and losses arising during the      period     |   |   | (144,526 | )      |   |   | 18,808     |   |   |   | (2,440 | ) |
| Less:      reclassification adjustment for net (gains) losses realized in net      income |   |   | 20,122   |   |   |   | (1,955     | )      |   |   | 1,447 |   |
| Other      comprehensive income (loss), net of tax                                        |   | $      | (164,648 | )      |   |   | 19,950     |   |   | $ | (3,571 | ) |

----

|                                     |   | (Unaudited)2008 |      |   | 2007   |   |      | 2006   |   |
|------------------------------------------|--------|-----------------|-----------|--------|--------|--------|-----------|--------|--------|
|                                     |   |            |      |   |   |   |      |   |   |
| Statutory capital and    surplus:        |   |            |      |   |   |   |      |   |   |
| Bermuda                                  |   | $               | 1,316,265 |   |   |   | 1,494,032 |   |   | $ | 1,178,261 |   |
| United      States                       |   |            | 574,073   |   |   |   | 547,963   |   |   |   | 530,822 |   |
| United      Kingdom                      |   |            | 20,880    |   |   |   | 26,278    |   |   |   | 174,474 |   |
| Total      statutory capital and surplus |   |            | 1,911,218 |   |   |   | 2,068,273 |   |   |   | 1,883,557 |   |
|                                     |   |            |      |   |   |   |      |   |   |   |   |   |
| Statutory net income(loss):              |   |            |      |   |   |   |      |   |   |   |   |   |
| Bermuda                                  |   |            | 227,156   |   |   |   | 311,401   |   |   |   | 281,247 |   |
| United      States                       |   |            | 14,955    |   |   |   | 51,085    |   |   |   | 117,980 |   |
| United      Kingdom                      |   |            | 2,439     |   |   |   | 3,826     |   |   |   | (7,927 | ) |
| Total      statutory net income          |   | $               | 244,550   |   |   |   | 366,312   |   |   | $ | 391,300 |   |

----

| 10. | Earnings Per Common      Share |
|-----|--------------------------------|

|                                                                                |   | NetIncome |    |   | WeightedAverageSharesOutstanding |   |    | Earnings Per      CommonShare |   |
|-------------------------------------------------------------------------------------|--------|-----------|---------|--------|----------------------------------|--------|---------|------------------------------------|--------|
|                                                                                |   |      |    |   |                             |   |    |                               |   |
| Year Ended December 31,      2008:                                             |   |      |    |   |                             |   |    |                               |   |
| Basic      earnings per common share:                                               |   |      |    |   |                             |   |    |                               |   |
| Net      income attributable to common shareholders                                 |   | $         | 215,832 |   |                             |   | 49,310  |                               |   | $ | 4.38 |   |
|                                                                                |   |      |    |   |                             |   |    |                               |   |   |   |   |
| Effect      of dilutive securities:                                                 |   |      |    |   |                             |   |    |                               |   |   |   |   |
| Common      share options, restricted common shares and restricted share      units |   |      | – |   |                             |   | 2,368   |                               |   |   |   |   |
| Conversion      of preferred shares                                                 |   |      | – |   |                             |   | 5,177   |                               |   |   |   |   |
| Preferred      share dividends                                                      |   |      | 10,408  |   |                             |   | – |                               |   |   |   |   |
| Adjusted      net income for diluted earnings per common share                      |   | $         | 226,240 |   |                             |   | 56,855  |                               |   | $ | 3.98 |   |
|                                                                                |   |      |    |   |                             |   |    |                               |   |   |   |   |
| Year Ended December 31,      2007:                                             |   |      |    |   |                             |   |    |                               |   |   |   |   |
| Basic      earnings per common share:                                               |   |      |    |   |                             |   |    |                               |   |   |   |   |
| Net      income attributable to common shareholders                                 |   | $         | 346,570 |   |                             |   | 58,631  |                               |   | $ | 5.91 |   |
|                                                                                |   |      |    |   |                             |   |    |                               |   |   |   |   |
| Effect      of dilutive securities:                                                 |   |      |    |   |                             |   |    |                               |   |   |   |   |
| Common      share options, restricted common shares and restricted share      units |   |      | – |   |                             |   | 2,656   |                               |   |   |   |   |
| Conversion      of preferred shares                                                 |   |      | – |   |                             |   | 5,117   |                               |   |   |   |   |
| Preferred      share dividends                                                      |   |      | 10,408  |   |                             |   | – |                               |   |   |   |   |
| Adjusted      net income for diluted earnings per common share                      |   | $         | 356,978 |   |                             |   | 66,404  |                               |   | $ | 5.38 |   |
|                                                                                |   |      |    |   |                             |   |    |                               |   |   |   |   |
| Year Ended December 31,      2006:                                             |   |      |    |   |                             |   |    |                               |   |   |   |   |
| Basic      earnings per common share:                                               |   |      |    |   |                             |   |    |                               |   |   |   |   |
| Net      income attributable to common shareholders                                 |   | $         | 319,275 |   |                             |   | 59,371  |                               |   | $ | 5.38 |   |
|                                                                                |   |      |    |   |                             |   |    |                               |   |   |   |   |
| Effect      of dilutive securities:                                                 |   |      |    |   |                             |   |    |                               |   |   |   |   |
| Common      share options, restricted common shares and restricted share      units |   |      | – |   |                             |   | 1,377   |                               |   |   |   |   |
| Conversion      of preferred shares                                                 |   |      | – |   |                             |   | 5,750   |                               |   |   |   |   |
| Preferred      share dividends                                                      |   |      | 10,382  |   |                             |   | – |                               |   |   |   |   |
| Adjusted      net income for diluted earnings per common share                      |   | $         | 329,657 |   |                             |   | 66,498  |                               |   | $ | 4.96 |   |

----

| 11. | Share Incentive      Compensation and Employee BenefitPlans |
|-----|-------------------------------------------------------------|

|                                                                    |   | As      of and for the years ended |   |
|-------------------------------------------------------------------------|--------|------------------------------------|--------|
|                                                                    |   | December 31,      2008        |   |   | December 31,      2007 |   |   | December 31,      2006 |   |
|                                                                    |   | Options                            |   |   | Weighted      Average Exercise Price |   |   | Options |   |   | Weighted      Average Exercise Price |   |   | Options |   |   | Weighted      Average Exercise Price |   |
|                                                                    |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Outstanding      – beginning of the year                          |   |                               | 2,926  |   |   | $ | 26.22 |   |   |   | 3,466 |   |   | $ | 24.20 |   |   |   | 3,918 |   |   | $ | 23.93 |   |
| Granted                                                                 |   |                               | 833    |   |   |   | 35.17 |   |   |   | 546 |   |   |   | 34.41 |   |   |   | 249 |   |   |   | 30.47 |   |
| Exercised                                                               |   |                               | 1,138  |   |   |   | 22.80 |   |   |   | 1,004 |   |   |   | 23.34 |   |   |   | 530 |   |   |   | 24.49 |   |
| Forfeited                                                               |   |                               | 47     |   |   |   | 33.81 |   |   |   | 82 |   |   |   | 30.69 |   |   |   | 171 |   |   |   | 26.24 |   |
| Outstanding      - end of the year                                      |   |                               | 2,574  |   |   | $ | 30.48 |   |   |   | 2,926 |   |   | $ | 26.22 |   |   |   | 3,466 |   |   | $ | 24.20 |   |
|                                                                    |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Options      exercisable at year-end                                    |   |                               | 1,754  |   |   |   |   |   |   |   | 2,125 |   |   |   |   |   |   |   | 2,930 |   |   |   |   |   |
| Weighted      average exercise price of options exercisable at year-end |   |                               |   |   |   | $ | 29.01 |   |   |   |   |   |   | $ | 23.63 |   |   |   |   |   |   | $ | 23.11 |   |

|                                   |   | 2008           |   |   | 2007           |   |   | 2006           |   |
|----------------------------------------|--------|----------------|--------|--------|----------------|--------|--------|----------------|--------|
|                                   |   |           |   |   |           |   |   |           |   |
| Dividend      yield                    |   |           | 1.0    | %      |           |   | 1.1    | %              |   |   | 1.0 | % |
| Risk      free interest rate           |   |           | 2.2    | %      |           |   | 4.6    | %              |   |   | 4.6 | % |
| Expected      volatility               |   |           | 23.0   | %      |           |   | 20.5   | %              |   |   | 22.0 | % |
| Expected      option life              |   | 2.6      years |   |   | 5.5      years |   |   | 5.4      years |   |
|                                   |   |           |   |   |           |   |   |           |   |   |   |   |
| Weighted      average grant fair value |   | $              | 4.91   |   |           | $      | 9.09   |           |   | $ | 8.08 |   |

----

|                                          |   | Years      ended December 31, |   |
|-----------------------------------------------|--------|------------------------------------|--------|
|                                          |   | 2008                               |   |   | 2007 |   |   | 2006 |   |
|                                          |   |                               |   |   |   |   |   |   |   |
| Intrinsic      value of options exercised (1) |   | $                                  | 14,702 |   |   |   | 10,962 |   |   | $ | 1,903 |   |
| Fair      value of options exercised (2)      |   |                               | 8,133  |   |   |   | 7,353 |   |   |   | 4,087 |   |
| Fair      value of options vested (2)         |   | $                                  | 3,987  |   |   |   | 1,830 |   |   | $ | 4,518 |   |

| (1) | Represents      the difference between the market value and strike price on the date of      exercise. |
|-----|--------------------------------------------------------------------------------------------------------|

| (2) | Based      on the Black-Scholes option pricingmodel. |
|-----|------------------------------------------------------|

|                                           |   | As      of and for the years ended |   |
|------------------------------------------------|--------|------------------------------------|--------|
|                                           |   | December 31,      2008        |   |   | December 31,      2007 |   |   | December 31,      2006 |   |
|                                           |   | Restricted      Share Units        |   |   | Weighted      Average Grant Date Fair Value |   |   | Restricted      Share Units |   |   | Weighted      Average Grant Date Fair Value |   |   | Restricted      Share Units |   |   | Weighted      Average Grant Date Fair Value |   |
|                                           |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Outstanding      – beginning of the year |   |                               | 288    |   |   | $ | 32.76 |   |   |   | 181 |   |   | $ | 30.66 |   |   |   | 112 |   |   | $ | 30.93 |   |
| Granted                                        |   |                               | 104    |   |   |   | 34.05 |   |   |   | 160 |   |   |   | 34.42 |   |   |   | 82 |   |   |   | 30.31 |   |
| Converted                                      |   |                               | 43     |   |   |   | 31.52 |   |   |   | 36 |   |   |   | 30.28 |   |   |   | – |   |   |   | – |   |
| Forfeited                                      |   |                               | 17     |   |   |   | 33.01 |   |   |   | 17 |   |   |   | 31.35 |   |   |   | 13 |   |   |   | 30.73 |   |
| Outstanding      - end of the year             |   |                               | 332    |   |   | $ | 33.31 |   |   |   | 288 |   |   | $ | 32.76 |   |   |   | 181 |   |   | $ | 30.66 |   |

----

| Share-based      compensation expense             |   | $      | 14,429 |   |
|---------------------------------------------------|--------|--------|--------|--------|
| Tax      benefit                                  |   |   | 1,746  |   |
| Share-based      compensation expense, net of tax |   | $      | 12,683 |   |

| 12. | Related Party      Transactions and Agreements |
|-----|------------------------------------------------|

| 13. | Operating Segment      Information |
|-----|------------------------------------|

----

|                                              |   | Propertyand      Marine |    |    | Casualty |   |    | Finite      Risk |   |   | Total   |   |
|---------------------------------------------------|--------|-------------------------|---------|---------|----------|--------|---------|------------------|--------|--------|---------|--------|
|                                              |   |                    |    |    |     |   |    |             |   |   |    |   |
| Year ended December 31,      2008:           |   |                    |    |    |     |   |    |             |   |   |    |   |
| Net      premiums written                         |   | $                       | 593,087 |    |     |   | 430,084 |             |   |   | 14,394  |   |   | $ | 1,037,565 |   |
| Net      premiums earned                          |   |                    | 599,110 |    |     |   | 503,300 |             |   |   | 12,386  |   |   |   | 1,114,796 |   |
| Net      losses and LAE                           |   |                    | 397,200 |    |     |   | 337,051 |             |   |   | (16,018 | )      |   |   | 718,233 |   |
| Net      acquisition expenses                     |   |                    | 90,816  |    |     |   | 125,934 |             |   |   | 25,965  |   |   |   | 242,715 |   |
| Other      underwriting expenses                  |   |                    | 38,492  |    |     |   | 23,982  |             |   |   | 1,270   |   |   |   | 63,744 |   |
| Segment      underwriting income                  |   | $                       | 72,602  |    |     |   | 16,333  |             |   |   | 1,169   |   |   |   | 90,104 |   |
|                                              |   |                    |    |    |     |   |    |             |   |   |    |   |   |   |   |   |
| Net      investment income                        |   |                    |    | 186,574 |     |
| Net      realized investment gains                |   |                    |    | 26,568  |     |
| Net      change in fair value of derivatives      |   |                    |    | (14,114 | )        |
| Net      foreign currency exchange losses         |   |                    |    | (6,760  | )        |
| Other      income                                 |   |                    |    | 337     |     |
| Corporate      expenses not allocated to segments |   |                    |    | (24,464 | )        |
| Interest      expense                             |   |                    |    | (19,006 | )        |
| Income      before income tax expense             |   |                    | $       | 239,239 |     |
|                                              |   |                    |    |    |     |   |    |             |   |   |    |   |   |   |   |   |
| Ratios:                                           |   |                    |    |    |     |   |    |             |   |   |    |   |   |   |   |   |
| Net      loss and LAE                             |   |                    | 66.3    | %       |     |   | 67.0    | %                |   |   | (129.3  | %)     |   |   | 64.4 | % |
| Net      acquisition expense                      |   |                    | 15.2    | %       |     |   | 25.0    | %                |   |   | 209.6   | %      |   |   | 21.8 | % |
| Other      underwriting expense                   |   |                    | 6.4     | %       |     |   | 4.8     | %                |   |   | 10.3    | %      |   |   | 5.7 | % |
| Combined                                          |   |                    | 87.9    | %       |     |   | 96.8    | %                |   |   | 90.6    | %      |   |   | 91.9 | % |
|                                              |   |                    |    |    |     |   |    |             |   |   |    |   |   |   |   |   |
| Year ended December 31,      2007:           |   |                    |    |    |     |   |    |             |   |   |    |   |   |   |   |   |
| Net      premiums written                         |   | $                       | 505,010 |    |     |   | 584,605 |             |   |   | 30,192  |   |   | $ | 1,119,807 |   |
| Net      premiums earned                          |   |                    | 502,291 |    |     |   | 637,856 |             |   |   | 32,941  |   |   |   | 1,173,088 |   |
| Net      losses and LAE                           |   |                    | 195,398 |    |     |   | 444,701 |             |   |   | 15,388  |   |   |   | 655,487 |   |
| Net      acquisition expenses                     |   |                    | 68,351  |    |     |   | 145,969 |             |   |   | 6,010   |   |   |   | 220,330 |   |
| Other      underwriting expenses                  |   |                    | 42,422  |    |     |   | 29,194  |             |   |   | 2,696   |   |   |   | 74,312 |   |
| Segment      underwriting income                  |   | $                       | 196,120 |    |     |   | 17,992  |             |   |   | 8,847   |   |   |   | 222,959 |   |
|                                              |   |                    |    |    |     |   |    |             |   |   |    |   |   |   |   |   |
| Net      investment income                        |   |                    |    | 214,222 |     |
| Net      realized investment losses               |   |                    |    | (1,222  | )        |
| Net      change in fair value of derivatives      |   |                    |    | (5,007  | )        |
| Net      foreign currency exchange gains          |   |                    |    | 2,775   |     |
| Other      expense                                |   |                    |    | (2,173  | )        |
| Corporate      expenses not allocated to segments |   |                    |    | (29,281 | )        |
| Interest      expense                             |   |                    |    | (21,470 | )        |
| Income      before income tax expense             |   |                    | $       | 380,803 |     |
|                                              |   |                    |    |    |     |   |    |             |   |   |    |   |   |   |   |   |
| Ratios:                                           |   |                    |    |    |     |   |    |             |   |   |    |   |   |   |   |   |
| Net      loss and LAE                             |   |                    | 38.9    | %       |     |   | 69.7    | %                |   |   | 46.7    | %      |   |   | 55.9 | % |
| Net      acquisition expense                      |   |                    | 13.6    | %       |     |   | 22.9    | %                |   |   | 18.2    | %      |   |   | 18.8 | % |
| Other      underwriting expense                   |   |                    | 8.4     | %       |     |   | 4.6     | %                |   |   | 8.2     | %      |   |   | 6.3 | % |
| Combined                                          |   |                    | 60.9    | %       |     |   | 97.2    | %                |   |   | 73.1    | %      |   |   | 81.0 | % |

----

|                                              |   | Propertyand      Marine |    |    | Casualty |   |    | Finite      Risk |   |   | Total   |   |
|---------------------------------------------------|--------|-------------------------|---------|---------|----------|--------|---------|------------------|--------|--------|---------|--------|
|                                              |   |                    |    |    |     |   |    |             |   |   |    |   |
| Year ended December 31,      2006:           |   |                    |    |    |     |   |    |             |   |   |    |   |
| Net      premiums written                         |   | $                       | 424,929 |    |     |   | 757,675 |             |   |   | (5,991  | )      |   | $ | 1,176,613 |   |
| Net      premiums earned                          |   |                    | 448,959 |    |     |   | 764,341 |             |   |   | 123,401 |   |   |   | 1,336,701 |   |
| Net      losses and LAE                           |   |                    | 145,900 |    |     |   | 522,815 |             |   |   | 91,887  |   |   |   | 760,602 |   |
| Net      acquisition expenses                     |   |                    | 70,905  |    |     |   | 188,717 |             |   |   | 26,301  |   |   |   | 285,923 |   |
| Other      underwriting expenses                  |   |                    | 39,887  |    |     |   | 27,022  |             |   |   | 4,387   |   |   |   | 71,296 |   |
| Segment      underwriting income                  |   | $                       | 192,267 |    |     |   | 25,787  |             |   |   | 826     |   |   |   | 218,880 |   |
|                                              |   |                    |    |    |     |   |    |             |   |   |    |   |   |   |   |   |
| Net      investment income                        |   |                    |    | 187,987 |     |
| Net      realized investment losses               |   |                    |    | (1,131  | )        |
| Net      foreign currency exchange gains          |   |                    |    | 738     |     |
| Other      expense                                |   |                    |    | (651    | )        |
| Corporate      expenses not allocated to segments |   |                    |    | (24,194 | )        |
| Interest      expense                             |   |                    |    | (21,805 | )        |
| Income      before income tax expense             |   |                    | $       | 359,824 |     |
|                                              |   |                    |    |    |     |   |    |             |   |   |    |   |   |   |   |   |
| Ratios:                                           |   |                    |    |    |     |   |    |             |   |   |    |   |   |   |   |   |
| Net      loss and LAE                             |   |                    | 32.5    | %       |     |   | 68.4    | %                |   |   | 74.5    | %      |   |   | 56.9 | % |
| Net      acquisition expense                      |   |                    | 15.8    | %       |     |   | 24.7    | %                |   |   | 21.3    | %      |   |   | 21.4 | % |
| Other      underwriting expense                   |   |                    | 8.9     | %       |     |   | 3.5     | %                |   |   | 3.6     | %      |   |   | 5.3 | % |
| Combined                                          |   |                    | 57.2    | %       |     |   | 96.6    | %                |   |   | 99.4    | %      |   |   | 83.6 | % |

|               |   | 2008   |      |   | 2007   |   |      | 2006   |   |
|--------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
|               |   |   |      |   |   |   |      |   |   |
| United      States |   | $      | 756,933   |   |   |   | 835,459   |   |   | $ | 949,522 |   |
| International      |   |   | 280,632   |   |   |   | 284,348   |   |   |   | 227,091 |   |
| Total              |   | $      | 1,037,565 |   |   |   | 1,119,807 |   |   | $ | 1,176,613 |   |

----

| 14. | Commitments and      Contingencies |
|-----|------------------------------------|

| Years Ending    December 31, |   |   |    |
|-----------------------------------|--------|--------|---------|
| 2009                              |   | $      | 3,010   |   |
| 2010                              |   |   | 2,109   |   |
| 2011                              |   |   | 2,035   |   |
| 2012                              |   |   | 1,934   |   |
| 2013                              |   |   | 967     |   |
| Thereafter                        |   |   | – |   |
| Total                             |   | $      | 10,055  |   |

----

| 15. | Quarterly Financial      Data (Unaudited) |
|-----|-------------------------------------------|

|                                                |   | Three      months ended |    |
|-----------------------------------------------------|--------|-------------------------|---------|
|                                                |   | March      31,2008      |    |   | June      30,2008 |   |   | September      30,2008 |   |   | December 31,2008 |   |
|                                                |   |                    |    |   |   |   |   |   |   |   |   |   |
| Net      premiums earned                            |   | $                       | 301,851 |   |   |   | 257,982 |   |   |   | 280,725 |   |   | $ | 274,238 |   |
| Net      investment income                          |   |                    | 49,062  |   |   |   | 46,932 |   |   |   | 48,043 |   |   |   | 42,537 |   |
| Net      losses and LAE                             |   |                    | 160,203 |   |   |   | 93,392 |   |   |   | 270,863 |   |   |   | 193,775 |   |
| Net      acquisition expenses                       |   |                    | 60,542  |   |   |   | 66,137 |   |   |   | 56,320 |   |   |   | 59,716 |   |
| Operating      expenses                             |   |                    | 21,690  |   |   |   | 25,100 |   |   |   | 21,153 |   |   |   | 20,265 |   |
|                                                |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income attributable to common shareholders |   |                    | 102,569 |   |   |   | 99,755 |   |   |   | (47,942 | ) |   |   | 61,450 |   |
|                                                |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings      per common share:                     |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                               |   |                    | 1.97    |   |   |   | 2.06 |   |   |   | (0.99 | ) |   |   | 1.30 |   |
| Diluted                                             |   | $                       | 1.76    |   |   |   | 1.82 |   |   |   | (0.99 | ) |   | $ | 1.18 |   |
|                                                |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average      common shares outstanding:             |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                               |   |                    | 52,104  |   |   |   | 48,468 |   |   |   | 48,260 |   |   |   | 47,363 |   |
| Diluted                                             |   |                    | 59,874  |   |   |   | 56,097 |   |   |   | 48,260 |   |   |   | 54,498 |   |

|                                                |   | Three      months ended |    |
|-----------------------------------------------------|--------|-------------------------|---------|
|                                                |   | March      31,2007      |    |   | June      30,2007 |   |   | September      30,2007 |   |   | December 31,2007 |   |
|                                                |   |                    |    |   |   |   |   |   |   |   |   |   |
| Net      premiums earned                            |   | $                       | 284,848 |   |   |   | 295,918 |   |   |   | 290,310 |   |   | $ | 302,012 |   |
| Net      investment income                          |   |                    | 51,699  |   |   |   | 54,684 |   |   |   | 54,283 |   |   |   | 53,556 |   |
| Net      losses and LAE                             |   |                    | 181,913 |   |   |   | 164,431 |   |   |   | 163,923 |   |   |   | 145,220 |   |
| Net      acquisition expenses                       |   |                    | 48,120  |   |   |   | 56,827 |   |   |   | 51,445 |   |   |   | 63,938 |   |
| Operating      expenses                             |   |                    | 23,206  |   |   |   | 26,108 |   |   |   | 28,161 |   |   |   | 26,118 |   |
|                                                |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income attributable to common shareholders |   |                    | 70,231  |   |   |   | 88,048 |   |   |   | 88,701 |   |   |   | 99,590 |   |
|                                                |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings      per common share:                     |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                               |   |                    | 1.18    |   |   |   | 1.47 |   |   |   | 1.50 |   |   |   | 1.78 |   |
| Diluted                                             |   | $                       | 1.08    |   |   |   | 1.34 |   |   |   | 1.37 |   |   | $ | 1.60 |   |
|                                                |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average      common shares outstanding:             |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                               |   |                    | 59,718  |   |   |   | 60,061 |   |   |   | 58,946 |   |   |   | 55,838 |   |
| Diluted                                             |   |                    | 67,257  |   |   |   | 67,857 |   |   |   | 66,710 |   |   |   | 63,761 |   |

----

| 16. | Condensed      Consolidating FinancialInformation |
|-----|---------------------------------------------------|

386,380,000.

| Condensed      Consolidating Balance Sheet December 31,      2008 |   | Platinum      Holdings |      |   | Platinum      Finance |   |    | Non-guarantor      Subsidiaries |   |   | Consolidating      Adjustments |   |   | Consolidated |       |
|------------------------------------------------------------------------|--------|------------------------|-----------|--------|-----------------------|--------|---------|---------------------------------|--------|--------|--------------------------------|--------|--------|--------------|------------|
|                                                                   |   |                   |      |   |                  |   |    |                            |   |   |                           |   |   |         |       |
| ASSETS                                                                 |   |                   |      |   |                  |   |    |                            |   |   |                           |   |   |         |       |
| Total      investments                                                 |   | $                      | –   |   |                  |   | 2,140   |                            |   |   | 3,444,782                      |   |   |         | –    |   |   | $ | 3,446,922 |   |
| Investment      in subsidiaries                                        |   |                   | 1,736,321 |   |                  |   | 518,682 |                            |   |   | 302,500                        |   |   |         | (2,557,503 | ) |   |   | – |   |
| Cash      and cash equivalents                                         |   |                   | 66,325    |   |                  |   | 10,468  |                            |   |   | 736,224                        |   |   |         | –    |   |   |   | 813,017 |   |
| Reinsurance      assets                                                |   |                   | –   |   |                  |   | – |                            |   |   | 517,846                        |   |   |         | –    |   |   |   | 517,846 |   |
| Other      assets                                                      |   |                   | 14,158    |   |                  |   | 2,652   |                            |   |   | 132,568                        |   |   |         | –    |   |   |   | 149,378 |   |
| Total      assets                                                      |   | $                      | 1,816,804 |   |                  |   | 533,942 |                            |   |   | 5,133,920                      |   |   |         | (2,557,503 | ) |   | $ | 4,927,163 |   |
|                                                                   |   |                   |      |   |                  |   |    |                            |   |   |                           |   |   |         |       |   |   |   |   |   |
| LIABILITIES      ANDSHAREHOLDERS’      EQUITY                    |   |                   |      |   |                  |   |    |                            |   |   |                           |   |   |         |       |   |   |   |   |   |
| Liabilities                                                            |   |                   |      |   |                  |   |    |                            |   |   |                           |   |   |         |       |   |   |   |   |   |
| Reinsurance      liabilities                                           |   | $                      | –   |   |                  |   | – |                            |   |   | 2,810,865                      |   |   |         | –    |   |   | $ | 2,810,865 |   |
| Debt      obligations                                                  |   |                   | –   |   |                  |   | 250,000 |                            |   |   | –                        |   |   |         | –    |   |   |   | 250,000 |   |
| Other      liabilities                                                 |   |                   | 7,407     |   |                  |   | 2,412   |                            |   |   | 47,082                         |   |   |         | –    |   |   |   | 56,901 |   |
| Total      liabilities                                                 |   |                   | 7,407     |   |                  |   | 252,412 |                            |   |   | 2,857,947                      |   |   |         | –    |   |   |   | 3,117,766 |   |
|                                                                   |   |                   |      |   |                  |   |    |                            |   |   |                           |   |   |         |       |   |   |   |   |   |
| Shareholders’ Equity                                             |   |                   |      |   |                  |   |    |                            |   |   |                           |   |   |         |       |   |   |   |   |   |
| Preferred      shares                                                  |   |                   | 57        |   |                  |   | – |                            |   |   | –                        |   |   |         | –    |   |   |   | 57 |   |
| Common      shares                                                     |   |                   | 475       |   |                  |   | – |                            |   |   | 6,250                          |   |   |         | (6,250     | ) |   |   | 475 |   |
| Additional      paid-in capital                                        |   |                   | 1,114,135 |   |                  |   | 194,264 |                            |   |   | 1,898,582                      |   |   |         | (2,092,846 | ) |   |   | 1,114,135 |   |
| Accumulated      other comprehensive loss                              |   |                   | (188,987  | )      |                  |   | (27,899 | )                               |   |   | (216,870                       | )      |   |         | 244,769    |   |   |   | (188,987 | ) |
| Retained      earnings                                                 |   |                   | 883,717   |   |                  |   | 115,165 |                            |   |   | 588,011                        |   |   |         | (703,176   | ) |   |   | 883,717 |   |
| Total      shareholders’ equity                                  |   |                   | 1,809,397 |   |                  |   | 281,530 |                            |   |   | 2,275,973                      |   |   |         | (2,557,503 | ) |   |   | 1,809,397 |   |
|                                                                   |   |                   |      |   |                  |   |    |                            |   |   |                           |   |   |         |       |   |   |   |   |   |
| Total      liabilities and shareholders’ equity                  |   | $                      | 1,816,804 |   |                  |   | 533,942 |                            |   |   | 5,133,920                      |   |   |         | (2,557,503 | ) |   | $ | 4,927,163 |   |

----

| Condensed      Consolidating Balance Sheet December      31, 2007 |   | Platinum      Holdings |      |   | Platinum      Finance |   |    | Non-guarantor      Subsidiaries |   |   | Consolidating      Adjustments |   |   | Consolidated |       |
|-------------------------------------------------------------------|--------|------------------------|-----------|--------|-----------------------|--------|---------|---------------------------------|--------|--------|--------------------------------|--------|--------|--------------|------------|
|                                                              |   |                   |      |   |                  |   |    |                            |   |   |                           |   |   |         |       |
| ASSETS                                                            |   |                   |      |   |                  |   |    |                            |   |   |                           |   |   |         |       |
| Total      investments                                            |   | $                      | –   |   |                  |   | 6,661   |                            |   |   | 3,378,563                      |   |   |         | –    |   |   | $ | 3,385,224 |   |
| Investment      in subsidiaries                                   |   |                   | 1,958,019 |   |                  |   | 504,642 |                            |   |   | 306,373                        |   |   |         | (2,769,034 | ) |   |   | – |   |
| Cash      and cash equivalents                                    |   |                   | 39,593    |   |                  |   | 18,348  |                            |   |   | 1,018,338                      |   |   |         | –    |   |   |   | 1,076,279 |   |
| Reinsurance      assets                                           |   |                   | –   |   |                  |   | – |                            |   |   | 517,820                        |   |   |         | –    |   |   |   | 517,820 |   |
| Other      assets                                                 |   |                   | 10,815    |   |                  |   | 2,106   |                            |   |   | 86,506                         |   |   |         | –    |   |   |   | 99,427 |   |
| Total      assets                                                 |   | $                      | 2,008,427 |   |                  |   | 531,757 |                            |   |   | 5,307,600                      |   |   |         | (2,769,034 | ) |   | $ | 5,078,750 |   |
|                                                              |   |                   |      |   |                  |   |    |                            |   |   |                           |   |   |         |       |   |   |   |   |   |
| LIABILITIES      ANDSHAREHOLDERS’      EQUITY               |   |                   |      |   |                  |   |    |                            |   |   |                           |   |   |         |       |   |   |   |   |   |
| Liabilities                                                       |   |                   |      |   |                  |   |    |                            |   |   |                           |   |   |         |       |   |   |   |   |   |
| Reinsurance      liabilities                                      |   | $                      | –   |   |                  |   | – |                            |   |   | 2,764,299                      |   |   |         | –    |   |   | $ | 2,764,299 |   |
| Debt      obligations                                             |   |                   | –   |   |                  |   | 250,000 |                            |   |   | –                        |   |   |         | –    |   |   |   | 250,000 |   |
| Other      liabilities                                            |   |                   | 10,050    |   |                  |   | 1,714   |                            |   |   | 54,310                         |   |   |         | –    |   |   |   | 66,074 |   |
| Total      liabilities                                            |   |                   | 10,050    |   |                  |   | 251,714 |                            |   |   | 2,818,609                      |   |   |         | –    |   |   |   | 3,080,373 |   |
|                                                              |   |                   |      |   |                  |   |    |                            |   |   |                           |   |   |         |       |   |   |   |   |   |
| Shareholders’ Equity                                        |   |                   |      |   |                  |   |    |                            |   |   |                           |   |   |         |       |   |   |   |   |   |
| Preferred      shares                                             |   |                   | 57        |   |                  |   | – |                            |   |   | –                        |   |   |         | –    |   |   |   | 57 |   |
| Common      shares                                                |   |                   | 538       |   |                  |   | – |                            |   |   | 6,250                          |   |   |         | (6,250     | ) |   |   | 538 |   |
| Additional      paid-in capital                                   |   |                   | 1,338,466 |   |                  |   | 193,054 |                            |   |   | 1,896,161                      |   |   |         | (2,089,215 | ) |   |   | 1,338,466 |   |
| Accumulated      other comprehensive loss                         |   |                   | (24,339   | )      |                  |   | (2,513  | )                               |   |   | (26,814                        | )      |   |         | 29,327     |   |   |   | (24,339 | ) |
| Retained      earnings                                            |   |                   | 683,655   |   |                  |   | 89,502  |                            |   |   | 613,394                        |   |   |         | (702,896   | ) |   |   | 683,655 |   |
| Total      shareholders' equity                                   |   |                   | 1,998,377 |   |                  |   | 280,043 |                            |   |   | 2,488,991                      |   |   |         | (2,769,034 | ) |   |   | 1,998,377 |   |
|                                                              |   |                   |      |   |                  |   |    |                            |   |   |                           |   |   |         |       |   |   |   |   |   |
| Total      liabilities and shareholders’ equity             |   | $                      | 2,008,427 |   |                  |   | 531,757 |                            |   |   | 5,307,600                      |   |   |         | (2,769,034 | ) |   | $ | 5,078,750 |   |

| Consolidating      Statement of Operations For      the Year Ended December 31, 2008 |   | Platinum      Holdings |          |   | Platinum      Finance |   |         | Non-guarantor      Subsidiaries |   |   | Consolidating      Adjustments |   |   | Consolidated |           |
|-------------------------------------------------------------------------------------------|--------|------------------------|---------------|--------|-----------------------|--------|--------------|---------------------------------|--------|--------|--------------------------------|--------|--------|--------------|----------------|
|                                                                                      |   |                   |          |   |                  |   |         |                            |   |   |                           |   |   |         |           |
| Revenue:                                                                                  |   |                   |          |   |                  |   |         |                            |   |   |                           |   |   |         |           |
| Net      premiums earned                                                                  |   | $                      | –       |   |                  |   | –      |                            |   |   | 1,114,796                      |   |   |         | –        |   |   | $ | 1,114,796 |   |
| Net      investment income                                                                |   |                   | 1,644         |   |                  |   | 594          |                            |   |   | 184,336                        |   |   |         | –        |   |   |   | 186,574 |   |
| Net      realized investment gains                                                        |   |                   | –       |   |                  |   | 52           |                            |   |   | 26,516                         |   |   |         | –        |   |   |   | 26,568 |   |
| Other      income (expense), net                                                          |   |                   | 2,390         |   |                  |   | –      |                            |   |   | (2,053                         | )      |   |         | –        |   |   |   | 337 |   |
| Total      revenue                                                                        |   |                   | 4,034         |   |                  |   | 646          |                            |   |   | 1,323,595                      |   |   |         | –        |   |   |   | 1,328,275 |   |
| Expenses:                                                                                 |   |                   |          |   |                  |   |         |                            |   |   |                           |   |   |         |           |   |   |   |   |   |
| Net      losses and loss adjustment expenses                                              |   |                   | –       |   |                  |   | –      |                            |   |   | 718,233                        |   |   |         | –        |   |   |   | 718,233 |   |
| Net      acquisition expenses                                                             |   |                   | –       |   |                  |   | –      |                            |   |   | 242,715                        |   |   |         | –        |   |   |   | 242,715 |   |
| Net      change in fair value of derivatives                                              |   |                   | –       |   |                  |   | –      |                            |   |   | 14,114                         |   |   |         | –        |   |   |   | 14,114 |   |
| Operating      expenses                                                                   |   |                   | 23,937        |   |                  |   | 358          |                            |   |   | 63,913                         |   |   |         | –        |   |   |   | 88,208 |   |
| Net      foreign currency exchange losses                                                 |   |                   | –       |   |                  |   | –      |                            |   |   | 6,760                          |   |   |         | –        |   |   |   | 6,760 |   |
| Interest      expense                                                                     |   |                   | –       |   |                  |   | 19,006       |                            |   |   | –                        |   |   |         | –        |   |   |   | 19,006 |   |
| Total      expenses                                                                       |   |                   | 23,937        |   |                  |   | 19,364       |                            |   |   | 1,045,735                      |   |   |         | –        |   |   |   | 1,089,036 |   |
|                                                                                      |   |                   |          |   |                  |   |         |                            |   |   |                           |   |   |         |           |   |   |   |   |   |
| Income      (loss) before income tax expense (benefit)                                    |   |                   | (19,903       | )      |                  |   | (18,718      | )                               |   |   | 277,860                        |   |   |         | –        |   |   |   | 239,239 |   |
| Income      tax expense (benefit)                                                         |   |                   | 600           |   |                  |   | (6,149       | )                               |   |   | 18,548                         |   |   |         | –        |   |   |   | 12,999 |   |
|                                                                                      |   |                   |          |   |                  |   |         |                            |   |   |                           |   |   |         |           |   |   |   |   |   |
| Income      (loss) before equity in earnings of subsidiaries                              |   |                   | (20,503       | )      |                  |   | (12,569      | )                               |   |   | 259,312                        |   |   |         | –        |   |   |   | 226,240 |   |
| Equity      in earnings of subsidiaries                                                   |   |                   | 246,743       |   |                  |   | 38,233       |                            |   |   | 20,305                         |   |   |         | (305,281       | ) |   |   | – |   |
|                                                                                      |   |                   |          |   |                  |   |         |                            |   |   |                           |   |   |         |           |   |   |   |   |   |
| Net      income                                                                           |   |                   | 226,240       |   |                  |   | 25,664       |                            |   |   | 279,617                        |   |   |         | (305,281       | ) |   |   | 226,240 |   |
| Preferred      dividends                                                                  |   |                   | 10,408        |   |                  |   | –      |                            |   |   | –                        |   |   |         | –        |   |   |   | 10,408 |   |
|                                                                                      |   |                   |          |   |                  |   |         |                            |   |   |                           |   |   |         |           |   |   |   |   |   |
| Net      income attributable to common shareholders                                       |   | $                 |  215,832 |   |                  |   |  25,664 |                            |   |   |  279,617                  |   |   |         | (305,281  | )  |   | $  |  215,832 |   |

----

| Consolidating      Statement of Operations For      the year ended December 31, 2007 |   | Platinum      Holdings |    |   | Platinum      Finance |   |    | Non-guarantor      Subsidiaries |   |   | Consolidating      Adjustments |   |   | Consolidated |     |
|-------------------------------------------------------------------------------------------|--------|------------------------|---------|--------|-----------------------|--------|---------|---------------------------------|--------|--------|--------------------------------|--------|--------|--------------|----------|
|                                                                                      |   |                   |    |   |                  |   |    |                            |   |   |                           |   |   |         |     |
| Revenue:                                                                                  |   |                   |    |   |                  |   |    |                            |   |   |                           |   |   |         |     |
| Net      premiums earned                                                                  |   | $                      | – |   |                  |   | – |                            |   |   | 1,173,088                      |   |   |         | –  |   |   | $ | 1,173,088 |   |
| Net      investment income                                                                |   |                   | 6,449   |   |                  |   | 2,348   |                            |   |   | 205,425                        |   |   |         | –  |   |   |   | 214,222 |   |
| Net      realized investment gains                                                        |   |                   | – |   |                  |   | – |                            |   |   | (1,222                         | )      |   |         | –  |   |   |   | (1,222 | ) |
| Other      income (expense)                                                               |   |                   | 4,167   |   |                  |   | – |                            |   |   | (6,340                         | )      |   |         | –  |   |   |   | (2,173 | ) |
| Total      revenue                                                                        |   |                   | 10,616  |   |                  |   | 2,348   |                            |   |   | 1,370,951                      |   |   |         | –  |   |   |   | 1,383,915 |   |
| Expenses:                                                                                 |   |                   |    |   |                  |   |    |                            |   |   |                           |   |   |         |     |   |   |   |   |   |
| Net      losses and loss adjustment expenses                                              |   |                   | – |   |                  |   | – |                            |   |   | 655,487                        |   |   |         | –  |   |   |   | 655,487 |   |
| Net      acquisition expenses                                                             |   |                   | – |   |                  |   | – |                            |   |   | 220,330                        |   |   |         | –  |   |   |   | 220,330 |   |
| Net      change in fair value of derivatives                                              |   |                   | – |   |                  |   | – |                            |   |   | 5,007                          |   |   |         | –  |   |   |   | 5,007 |   |
| Operating      expenses                                                                   |   |                   | 28,693  |   |                  |   | 361     |                            |   |   | 74,539                         |   |   |         | –  |   |   |   | 103,593 |   |
| Net      foreign currency exchange gains                                                  |   |                   | – |   |                  |   | – |                            |   |   | (2,775                         | )      |   |         | –  |   |   |   | (2,775 | ) |
| Interest      expense                                                                     |   |                   | – |   |                  |   | 21,470  |                            |   |   | –                        |   |   |         | –  |   |   |   | 21,470 |   |
| Total      expenses                                                                       |   |                   | 28,693  |   |                  |   | 21,831  |                            |   |   | 952,588                        |   |   |         | –  |   |   |   | 1,003,112 |   |
|                                                                                      |   |                   |    |   |                  |   |    |                            |   |   |                           |   |   |         |     |   |   |   |   |   |
| Income      (loss) before income tax expense (benefit)                                    |   |                   | (18,077 | )      |                  |   | (19,483 | )                               |   |   | 418,363                        |   |   |         | –  |   |   |   | 380,803 |   |
| Income      tax expense (benefit)                                                         |   |                   | 2,400   |   |                  |   | (6,665  | )                               |   |   | 28,090                         |   |   |         | –  |   |   |   | 23,825 |   |
|                                                                                      |   |                   |    |   |                  |   |    |                            |   |   |                           |   |   |         |     |   |   |   |   |   |
| Income      (loss) before equity in earnings of subsidiaries                              |   |                   | (20,477 | )      |                  |   | (12,818 | )                               |   |   | 390,273                        |   |   |         | –  |   |   |   | 356,978 |   |
| Equity      in earnings of subsidiaries                                                   |   |                   | 377,455 |   |                  |   | 52,111  |                            |   |   | 52,115                         |   |   |         | (481,681 | ) |   |   | – |   |
|                                                                                      |   |                   |    |   |                  |   |    |                            |   |   |                           |   |   |         |     |   |   |   |   |   |
| Net      income                                                                           |   |                   | 356,978 |   |                  |   | 39,293  |                            |   |   | 442,388                        |   |   |         | (481,681 | ) |   |   | 356,978 |   |
| Preferred      dividends                                                                  |   |                   | 10,408  |   |                  |   | – |                            |   |   | –                        |   |   |         | –  |   |   |   | 10,408 |   |
|                                                                                      |   |                   |    |   |                  |   |    |                            |   |   |                           |   |   |         |     |   |   |   |   |   |
| Net      income attributable to common shareholders                                       |   | $                      | 346,570 |   |                  |   | 39,293  |                            |   |   | 442,388                        |   |   |         | (481,681 | ) |   | $ | 346,570 |   |

| Consolidating      Statement of Operations For      the year ended December 31, 2006 |   | Platinum      Holdings |    |   | Platinum      Finance |   |    | Non-guarantor      Subsidiaries |   |   | Consolidating      Adjustments |   |   | Consolidated |     |
|-------------------------------------------------------------------------------------------|--------|------------------------|---------|--------|-----------------------|--------|---------|---------------------------------|--------|--------|--------------------------------|--------|--------|--------------|----------|
|                                                                                      |   |                   |    |   |                  |   |    |                            |   |   |                           |   |   |         |     |
| Revenue:                                                                                  |   |                   |    |   |                  |   |    |                            |   |   |                           |   |   |         |     |
| Net      premiums earned                                                                  |   | $                      | – |   |                  |   | – |                            |   |   | 1,336,701                      |   |   |         | –  |   |   | $ | 1,336,701 |   |
| Net      investment income                                                                |   |                   | 5,912   |   |                  |   | 1,033   |                            |   |   | 181,042                        |   |   |         | –  |   |   |   | 187,987 |   |
| Net      realized investment losses                                                       |   |                   | – |   |                  |   | – |                            |   |   | (1,131                         | )      |   |         | –  |   |   |   | (1,131 | ) |
| Other      income (expense)                                                               |   |                   | 3,577   |   |                  |   | – |                            |   |   | (4,228                         | )      |   |         | –  |   |   |   | (651 | ) |
| Total      revenue                                                                        |   |                   | 9,489   |   |                  |   | 1,033   |                            |   |   | 1,512,384                      |   |   |         | –  |   |   |   | 1,522,906 |   |
| Expenses:                                                                                 |   |                   |    |   |                  |   |    |                            |   |   |                           |   |   |         |     |   |   |   |   |   |
| Net      losses and loss adjustment expenses                                              |   |                   | – |   |                  |   | – |                            |   |   | 760,602                        |   |   |         | –  |   |   |   | 760,602 |   |
| Net      acquisition expenses                                                             |   |                   | – |   |                  |   | – |                            |   |   | 285,923                        |   |   |         | –  |   |   |   | 285,923 |   |
| Operating      expenses                                                                   |   |                   | 23,803  |   |                  |   | 544     |                            |   |   | 71,143                         |   |   |         | –  |   |   |   | 95,490 |   |
| Net      foreign currency exchange gains                                                  |   |                   | – |   |                  |   | – |                            |   |   | (738                           | )      |   |         | –  |   |   |   | (738 | ) |
| Interest      expense                                                                     |   |                   | – |   |                  |   | 21,803  |                            |   |   | 2                              |   |   |         | –  |   |   |   | 21,805 |   |
| Total      expenses                                                                       |   |                   | 23,803  |   |                  |   | 22,347  |                            |   |   | 1,116,932                      |   |   |         | –  |   |   |   | 1,163,082 |   |
|                                                                                      |   |                   |    |   |                  |   |    |                            |   |   |                           |   |   |         |     |   |   |   |   |   |
| Income      (loss) before income tax expense (benefit)                                    |   |                   | (14,314 | )      |                  |   | (21,314 | )                               |   |   | 395,452                        |   |   |         | –  |   |   |   | 359,824 |   |
| Income      tax expense (benefit)                                                         |   |                   | – |   |                  |   | (7,444  | )                               |   |   | 37,611                         |   |   |         | –  |   |   |   | 30,167 |   |
|                                                                                      |   |                   |    |   |                  |   |    |                            |   |   |                           |   |   |         |     |   |   |   |   |   |
| Income      (loss) before equity in earnings of subsidiaries                              |   |                   | (14,314 | )      |                  |   | (13,870 | )                               |   |   | 357,841                        |   |   |         | –  |   |   |   | 329,657 |   |
| Equity      in earnings of subsidiaries                                                   |   |                   | 343,971 |   |                  |   | 64,741  |                            |   |   | 61,473                         |   |   |         | (470,185 | ) |   |   | – |   |
|                                                                                      |   |                   |    |   |                  |   |    |                            |   |   |                           |   |   |         |     |   |   |   |   |   |
| Net      income                                                                           |   |                   | 329,657 |   |                  |   | 50,871  |                            |   |   | 419,314                        |   |   |         | (470,185 | ) |   |   | 329,657 |   |
| Preferred      dividends                                                                  |   |                   | 10,382  |   |                  |   | – |                            |   |   | –                        |   |   |         | –  |   |   |   | 10,382 |   |
|                                                                                      |   |                   |    |   |                  |   |    |                            |   |   |                           |   |   |         |     |   |   |   |   |   |
| Net      loss attributable to common shareholders                                         |   | $                      | 319,275 |   |                  |   | 50,871  |                            |   |   | 419,314                        |   |   |         | (470,185 | ) |   | $ | 319,275 |   |

----

| Condensed      Consolidating Statement of Cash Flows For the year ended      December 31, 2008 |   | PlatinumHoldings |     |   | Platinum      Finance |   |    | Non-guarantorSubsidiaries |   |   | Consolidating      Adjustments |   |   | Consolidated |     |
|-----------------------------------------------------------------------------------------------------|--------|------------------|----------|--------|-----------------------|--------|---------|---------------------------|--------|--------|--------------------------------|--------|--------|--------------|----------|
|                                                                                                |   |             |     |   |                  |   |    |                      |   |   |                           |   |   |         |     |
| Net      cash provided by (used in) operating activities                                            |   | $                | (11,470  | )      |                  |   | (12,479 | )                         |   |   | 152,848                        |   |   |         | –  |   |   | $ | 128,899 |   |
|                                                                                                |   |             |     |   |                  |   |    |                      |   |   |                           |   |   |         |     |   |   |   |   |   |
| Investing Activities:                                                                               |   |             |     |   |                  |   |    |                      |   |   |                           |   |   |         |     |   |   |   |   |   |
| Proceeds      from sale of available-for-sale securities                                            |   |             | –  |   |                  |   | 1,970   |                      |   |   | 1,534,781                      |   |   |         | –  |   |   |   | 1,536,751 |   |
| Proceeds      from maturity or paydown of available-for-sale securities                             |   |             | –  |   |                  |   | 2,629   |                      |   |   | 960,131                        |   |   |         | –  |   |   |   | 962,760 |   |
| Acquisition      of available-for-sale securities                                                   |   |             | –  |   |                  |   | – |                      |   |   | (2,557,648                     | )      |   |         | –  |   |   |   | (2,557,648 | ) |
| Proceeds      from sale of preferred stock                                                          |   |             | –  |   |                  |   | – |                      |   |   | 120                            |   |   |         | –  |   |   |   | 120 |   |
| Increase      in short-term investments                                                             |   |             | –  |   |                  |   | – |                      |   |   | (59,251                        | )      |   |         | –  |   |   |   | (59,251 | ) |
| Dividends      from subsidiaries                                                                    |   |             | 305,000  |   |                  |   | – |                      |   |   | –                        |   |   |         | (305,000 | ) |   |   | – |   |
| Net      cash provided by (used in) investing activities                                            |   |             | 305,000  |   |                  |   | 4,599   |                      |   |   | (121,867                       | )      |   |         | (305,000 | ) |   |   | (117,268 | ) |
|                                                                                                |   |             |     |   |                  |   |    |                      |   |   |                           |   |   |         |     |   |   |   |   |   |
| Financing Activities:                                                                               |   |             |     |   |                  |   |    |                      |   |   |                           |   |   |         |     |   |   |   |   |   |
| Dividends      paid to preferred shareholders                                                       |   |             | (10,408  | )      |                  |   | – |                      |   |   | –                        |   |   |         | –  |   |   |   | (10,408 | ) |
| Dividends      paid to common shareholders                                                          |   |             | (15,770  | )      |                  |   | – |                      |   |   | (305,000                       | )      |   |         | 305,000  |   |   |   | (15,770 | ) |
| Proceeds      from exercise of share options                                                        |   |             | 25,941   |   |                  |   | – |                      |   |   | –                        |   |   |         | –  |   |   |   | 25,941 |   |
| Purchase      of common shares                                                                      |   |             | (266,561 | )      |                  |   | – |                      |   |   | –                        |   |   |         | –  |   |   |   | (266,561 | ) |
| Net      cash used in financing activities                                                          |   |             | (266,798 | )      |                  |   | – |                      |   |   | (305,000                       | )      |   |         | 305,000  |   |   |   | (266,798 | ) |
|                                                                                                |   |             |     |   |                  |   |    |                      |   |   |                           |   |   |         |     |   |   |   |   |   |
| Effect      of foreign currency exchange rate changes on cash                                       |   |             | –  |   |                  |   | – |                      |   |   | (8,095                         | )      |   |         | –  |   |   |   | (8,095 | ) |
| Net      increase (decrease) in cash and cash equivalents                                           |   |             | 26,732   |   |                  |   | (7,880  | )                         |   |   | (282,114                       | )      |   |         | –  |   |   |   | (263,262 | ) |
| Cash      and cash equivalents at beginning of year                                                 |   |             | 39,593   |   |                  |   | 18,348  |                      |   |   | 1,018,338                      |   |   |         | –  |   |   |   | 1,076,279 |   |
|                                                                                                |   |             |     |   |                  |   |    |                      |   |   |                           |   |   |         |     |   |   |   |   |   |
| Cash      and cash equivalents at end of year                                                       |   | $                | 66,325   |   |                  |   | 10,468  |                      |   |   | 736,224                        |   |   |         | –  |   |   | $ | 813,017 |   |

| Condensed      Consolidating Statement of Cash Flows For the year ended      December 31, 2007 |   | PlatinumHoldings |     |   | Platinum      Finance |   |    | Non-guarantorSubsidiaries |   |   | Consolidating      Adjustments |   |   | Consolidated |     |
|-----------------------------------------------------------------------------------------------------|--------|------------------|----------|--------|-----------------------|--------|---------|---------------------------|--------|--------|--------------------------------|--------|--------|--------------|----------|
|                                                                                                |   |             |     |   |                  |   |    |                      |   |   |                           |   |   |         |     |
| Net      cash provided by (used in) operating activities                                            |   | $                | (10,170  | )      |                  |   | (12,889 | )                         |   |   | 464,614                        |   |   |         | –  |   |   | $ | 441,555 |   |
|                                                                                                |   |             |     |   |                  |   |    |                      |   |   |                           |   |   |         |     |   |   |   |   |   |
| Investing Activities:                                                                               |   |             |     |   |                  |   |    |                      |   |   |                           |   |   |         |     |   |   |   |   |   |
| Proceeds      from sale of available-for-sale securities                                            |   |             | –  |   |                  |   | 4,708   |                      |   |   | 243,633                        |   |   |         | –  |   |   |   | 248,341 |   |
| Proceeds      from maturity or paydown of available-for-sale securities                             |   |             | –  |   |                  |   | 76      |                      |   |   | 1,453,611                      |   |   |         | –  |   |   |   | 1,453,687 |   |
| Acquisition      of available-for-sale securities                                                   |   |             | –  |   |                  |   | – |                      |   |   | (1,650,626                     | )      |   |         | –  |   |   |   | (1,650,626 | ) |
| Proceeds      from sale of other invested asset                                                     |   |             | –  |   |                  |   | – |                      |   |   | 4,745                          |   |   |         | –  |   |   |   | 4,745 |   |
| Increase      in short-term investments                                                             |   |             | –  |   |                  |   | – |                      |   |   | 14,035                         |   |   |         | –  |   |   |   | 14,035 |   |
| Dividends      from subsidiaries                                                                    |   |             | 190,000  |   |                  |   | 30,000  |                      |   |   | –                        |   |   |         | (220,000 | ) |   |   | – |   |
| Net      cash provided by (used in) investing activities                                            |   |             | 190,000  |   |                  |   | 34,784  |                      |   |   | 65,398                         |   |   |         | (220,000 | ) |   |   | 70,182 |   |
|                                                                                                |   |             |     |   |                  |   |    |                      |   |   |                           |   |   |         |     |   |   |   |   |   |
| Financing Activities:                                                                               |   |             |     |   |                  |   |    |                      |   |   |                           |   |   |         |     |   |   |   |   |   |
| Dividends      paid to preferred shareholders                                                       |   |             | (10,408  | )      |                  |   | – |                      |   |   | –                        |   |   |         | –  |   |   |   | (10,408 | ) |
| Dividends      paid to common shareholders                                                          |   |             | (18,632  | )      |                  |   | – |                      |   |   | (220,000                       | )      |   |         | 220,000  |   |   |   | (18,632 | ) |
| Proceeds      from exercise of share options                                                        |   |             | 23,435   |   |                  |   | – |                      |   |   | –                        |   |   |         | –  |   |   |   | 23,435 |   |
| Purchase      of common shares                                                                      |   |             | (240,672 | )      |                  |   | – |                      |   |   | –                        |   |   |         | –  |   |   |   | (240,672 | ) |
| Repayment      of debt obligations                                                                  |   |             | –  |   |                  |   | (42,840 | )                         |   |   | –                        |   |   |         | –  |   |   |   | (42,840 | ) |
| Net      cash used in financing activities                                                          |   |             | (246,277 | )      |                  |   | (42,840 | )                         |   |   | (220,000                       | )      |   |         | 220,000  |   |   |   | (289,117 | ) |
|                                                                                                |   |             |     |   |                  |   |    |                      |   |   |                           |   |   |         |     |   |   |   |   |   |
| Effect      of foreign currency exchange rate changes on cash                                       |   |             | –  |   |                  |   | – |                      |   |   | 2,007                          |   |   |         | –  |   |   |   | 2,007 |   |
| Net      increase (decrease) in cash and cash equivalents                                           |   |             | (66,447  | )      |                  |   | (20,945 | )                         |   |   | 312,019                        |   |   |         | –  |   |   |   | 224,627 |   |
| Cash      and cash equivalents at beginning of year                                                 |   |             | 106,040  |   |                  |   | 39,293  |                      |   |   | 706,319                        |   |   |         | –  |   |   |   | 851,652 |   |
|                                                                                                |   |             |     |   |                  |   |    |                      |   |   |                           |   |   |         |     |   |   |   |   |   |
| Cash      and cash equivalents at end of year                                                       |   | $                | 39,593   |   |                  |   | 18,348  |                      |   |   | 1,018,338                      |   |   |         | –  |   |   | $ | 1,076,279 |   |

----

| Condensed      Consolidating Statement of Cash Flows For the year ended      December 31, 2006 |   | Platinum      Holdings |    |   | Platinum      Finance |   |    | Non-guarantorSubsidiaries |   |   | Consolidating      Adjustments |   |   | Consolidated |    |
|-----------------------------------------------------------------------------------------------------|--------|------------------------|---------|--------|-----------------------|--------|---------|---------------------------|--------|--------|--------------------------------|--------|--------|--------------|---------|
|                                                                                                |   |                   |    |   |                  |   |    |                      |   |   |                           |   |   |         |    |
| Net      cash provided by (used in) operating activities                                            |   | $                      | (9,650  | )      |                  |   | (6,483  | )                         |   |   | 543,279                        |   |   |         | – |   |   | $ | 527,146 |   |
|                                                                                                |   |                   |    |   |                  |   |    |                      |   |   |                           |   |   |         |    |   |   |   |   |   |
| Investing Activities:                                                                               |   |                   |    |   |                  |   |    |                      |   |   |                           |   |   |         |    |   |   |   |   |   |
| Proceeds      from sale of available-for-sale securities                                            |   |                   | – |   |                  |   | 1,564   |                      |   |   | 346,578                        |   |   |         | – |   |   |   | 348,142 |   |
| Proceeds      from maturity or paydown of available-for-sale securities                             |   |                   | – |   |                  |   | – |                      |   |   | 270,939                        |   |   |         | – |   |   |   | 270,939 |   |
| Acquisition      of available-for-sale securities                                                   |   |                   | – |   |                  |   | (498    | )                         |   |   | (1,082,784                     | )      |   |         | – |   |   |   | (1,083,282 | ) |
| Dividends      from subsidiaries                                                                    |   |                   | 1,600   |   |                  |   | 40,000  |                      |   |   | –                        |   |   |         | (41,600 | ) |   |   | – |   |
| Increase      in short-term investments                                                             |   |                   | – |   |                  |   | – |                      |   |   | (15,822                        | )      |   |         | – |   |   |   | (15,822 | ) |
| Contributions      to subsidiaries                                                                  |   |                   | – |   |                  |   | (300    | )                         |   |   | –                        |   |   |         | 300     |   |   |   | – |   |
| Net      cash provided by (used in) investing activities                                            |   |                   | 1,600   |   |                  |   | 40,766  |                      |   |   | (481,089                       | )      |   |         | (41,300 | ) |   |   | (480,023 | ) |
|                                                                                                |   |                   |    |   |                  |   |    |                      |   |   |                           |   |   |         |    |   |   |   |   |   |
| Financing Activities:                                                                               |   |                   |    |   |                  |   |    |                      |   |   |                           |   |   |         |    |   |   |   |   |   |
| Dividends      paid to preferred shareholders                                                       |   |                   | (9,818  | )      |                  |   | – |                      |   |   | –                        |   |   |         | – |   |   |   | (9,818 | ) |
| Dividends      paid to common shareholders                                                          |   |                   | (19,029 | )      |                  |   | – |                      |   |   | (41,600                        | )      |   |         | 41,600  |   |   |   | (19,029 | ) |
| Proceeds      from exercise of share options                                                        |   |                   | 12,975  |   |                  |   | – |                      |   |   | –                        |   |   |         | – |   |   |   | 12,975 |   |
| Capital      contribution from parent                                                               |   |                   | – |   |                  |   | – |                      |   |   | 300                            |   |   |         | (300    | ) |   |   | – |   |
| Net      cash used in financing activities                                                          |   |                   | (15,872 | )      |                  |   | – |                      |   |   | (41,300                        | )      |   |         | 41,300  |   |   |   | (15,872 | ) |
|                                                                                                |   |                   |    |   |                  |   |    |                      |   |   |                           |   |   |         |    |   |   |   |   |   |
| Effect      of foreign currency exchange rate changes on cash                                       |   |                   | – |   |                  |   | – |                      |   |   | (345                           | )      |   |         | – |   |   |   | (      345 | ) |
| Net      increase (decrease) in cash and cash equivalents                                           |   |                   | (23,922 | )      |                  |   | 34,283  |                      |   |   | 20,545                         |   |   |         | – |   |   |   | 30,906 |   |
| Cash      and cash equivalents at beginning of year                                                 |   |                   | 129,962 |   |                  |   | 5,010   |                      |   |   | 685,774                        |   |   |         | – |   |   |   | 820,746 |   |
|                                                                                                |   |                   |    |   |                  |   |    |                      |   |   |                           |   |   |         |    |   |   |   |   |   |
| Cash and cash equivalents at end of year                                                            |   | $                      | 106,040 |   |                  |   | 39,293  |                      |   |   | 706,319                        |   |   |         | – |   |   | $ | 851,652 |   |

----

|                                                                                                                 | Page   |
|----------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                 |   |
| Report      of Independent Registered Public Accounting Firm                                                         | S-2    |
|                                                                                                                 |   |
| Schedule      I Summary of Investments - Other Than Investments in Related Parties as of      December 31, 2008 | S-3    |
|                                                                                                                 |   |
| Schedule      II Condensed Financial Information of the Registrant                                                   | S-4    |
|                                                                                                                 |   |
| Schedule      III Supplementary Insurance Information for the years ended      December 31, 2008, 2007 and 2006 | S-7    |
|                                                                                                                 |   |
| Schedule      IV Reinsurance for the years ended December 31, 2008, 2007 and      2006                          | S-8    |
|                                                                                                                 |   |

----

----

| SCHEDULE      I |
|-----------------|

|                                                         |   | Cost*  |      |   | Fair      Value |   |      | Amount      at which shown in Balance Sheet |   |
|--------------------------------------------------------------|--------|--------|-----------|--------|-----------------|--------|-----------|---------------------------------------------|--------|
|                                                         |   |   |      |   |            |   |      |                                        |   |
| Fixed      maturity securities:                              |   |   |      |   |            |   |      |                                        |   |
| Bonds:                                                       |   |   |      |   |            |   |      |                                        |   |
| U.S.      Government and government agencies and authorities |   | $      | 1,037,445 |   |            |   | 1,065,065 |                                        |   | $ | 1,065,065 |   |
| State,      municipalities and political subdivisions        |   |   | 343,090   |   |            |   | 346,147   |                                        |   |   | 346,147 |   |
| Foreign      governments                                     |   |   | 161,295   |   |            |   | 168,270   |                                        |   |   | 168,270 |   |
| Foreign      corporate                                       |   |   | 125,290   |   |            |   | 119,485   |                                        |   |   | 119,485 |   |
| Public      utilities                                        |   |   | 99,513    |   |            |   | 97,827    |                                        |   |   | 97,827 |   |
| All      other corporate                                     |   |   | 1,762,421 |   |            |   | 1,545,818 |                                        |   |   | 1,545,818 |   |
| Total      bonds                                             |   |   | 3,529,054 |   |            |   | 3,342,612 |                                        |   |   | 3,342,612 |   |
| Redeemable      preferred stock                              |   |   | 35,354    |   |            |   | 26,429    |                                        |   |   | 26,429 |   |
| Total      fixed maturity securities                         |   |   | 3,564,408 |   |            |   | 3,369,041 |                                        |   |   | 3,369,041 |   |
| Preferred      stock                                         |   |   | 3,087     |   |            |   | 2,845     |                                        |   |   | 2,845 |   |
| Other      long term investments                             |   |   | –   |   |            |   | –   |                                        |   |   | – |   |
| Short-term      investments                                  |   |   | 75,036    |   |            |   | 75,036    |                                        |   |   | 75,036 |   |
| Total      investments                                       |   | $      | 3,642,531 |   |            |   | 3,446,922 |                                        |   | $ | 3,446,922 |   |

----

| SCHEDULE      II |
|------------------|

|                                                                                                                                          |   | 2008   |      |   | 2007   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
|                                                                                                                                          |   |   |      |   |   |   |
| ASSETS                                                                                                                                        |
| Investments      in affiliates                                                                                                                |   | $      | 1,736,321 |   |   | $      | 1,958,019 |   |
| Cash                                                                                                                                          |   |   | 66,325    |   |   |   | 39,593 |   |
| Other      assets                                                                                                                             |   |   | 14,158    |   |   |   | 10,814 |   |
| Total      assets                                                                                                                             |   | $      | 1,816,804 |   |   | $      | 2,008,426 |   |
|                                                                                                                                          |   |   |      |   |   |   |   |   |
| LIABILITIES      AND SHAREHOLDERS’ EQUITY                                                                                               |
| Liabilities                                                                                                                                   |   |   |      |   |   |   |   |   |
| Accrued      expenses and other liabilities                                                                                                   |   | $      | 7,407     |   |   | $      | 10,049 |   |
| Total      liabilities                                                                                                                        |   |   | 7,407     |   |   |   | 10,049 |   |
|                                                                                                                                          |   |   |      |   |   |   |   |   |
| 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, 47,482,161 and      53,779,914 shares issued and outstanding, respectively |   |   | 475       |   |   |   | 538 |   |
| Additional      paid-in capital                                                                                                               |   |   | 1,114,135 |   |   |   | 1,338,466 |   |
| Accumulated      other comprehensive loss                                                                                                     |   |   | (188,987  | )      |   |   | (24,339 | ) |
| Retained      earnings                                                                                                                        |   |   | 883,717   |   |   |   | 683,655 |   |
| Total      shareholders' equity                                                                                                               |   |   | 1,809,397 |   |   |   | 1,998,377 |   |
|                                                                                                                                          |   |   |      |   |   |   |   |   |
| Total      liabilities and shareholders' equity                                                                                               |   | $      | 1,816,804 |   |   | $      | 2,008,426 |   |

----

| SCHEDULE      II, continued |
|-----------------------------|

|                                                  |   | 2008   |    |   | 2007   |   |    | 2006   |   |
|-------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|                                                  |   |   |    |   |   |   |    |   |   |
| Revenue:                                              |   |   |    |   |   |   |    |   |   |
| Net      investment income                            |   | $      | 1,644   |   |   |   | 6,449   |   |   | $ | 5,912 |   |
| Other      income                                     |   |   | 2,390   |   |   |   | 4,167   |   |   |   | 3,577 |   |
| Total      revenue                                    |   |   | 4,034   |   |   |   | 10,616  |   |   |   | 9,489 |   |
|                                                  |   |   |    |   |   |   |    |   |   |   |   |   |
| Expenses:                                             |   |   |    |   |   |   |    |   |   |   |   |   |
| Operating      expenses                               |   |   | 23,937  |   |   |   | 28,693  |   |   |   | 23,803 |   |
| Total      expenses                                   |   |   | 23,937  |   |   |   | 28,693  |   |   |   | 23,803 |   |
|                                                  |   |   |    |   |   |   |    |   |   |   |   |   |
| Loss      before income taxes                         |   |   | (19,903 | )      |   |   | (18,077 | )      |   |   | (14,314 | ) |
| Income      tax expense                               |   |   | 600     |   |   |   | 2,400   |   |   |   | – |   |
|                                                  |   |   |    |   |   |   |    |   |   |   |   |   |
| Net      loss before equity in earnings of affiliates |   |   | (20,503 | )      |   |   | (20,477 | )      |   |   | (14,314 | ) |
| Equity      in earnings of affiliates                 |   |   | 246,743 |   |   |   | 377,455 |   |   |   | 343,971 |   |
|                                                  |   |   |    |   |   |   |    |   |   |   |   |   |
| Net      income before preferred dividends            |   |   | 226,240 |   |   |   | 356,978 |   |   |   | 329,657 |   |
| Preferred      dividends                              |   |   | 10,408  |   |   |   | 10,408  |   |   |   | 10,382 |   |
|                                                  |   |   |    |   |   |   |    |   |   |   |   |   |
| Net      income attributable to common shareholders   |   | $      | 215,832 |   |   |   | 346,570 |   |   | $ | 319,275 |   |

----

| SCHEDULE      II, continued |
|-----------------------------|

|                                                                        |   | 2008   |     |   | 2007   |   |     | 2006   |   |
|-----------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|----------|--------|--------|
|                                                                        |   |   |     |   |   |   |     |   |   |
| Operating Activities:                                                       |   |   |     |   |   |   |     |   |   |
| Net      loss before equity in earnings of affiliates                       |   | $      | (20,503  | )      |   |   | (20,477  | )      |   | $ | (14,314 | ) |
| Adjustments      to reconcile net income to net cash provided inoperations: |   |   |     |   |   |   |     |   |   |   |   |   |
| Share      based compensation                                               |   |   | 7,057    |   |   |   | 4,895    |   |   |   | 3,552 |   |
| Depreciation      and amortization                                          |   |   | 445      |   |   |   | 269      |   |   |   | 129 |   |
| Other,      net                                                             |   |   | 1,531    |   |   |   | 5,144    |   |   |   | 983 |   |
| Net      cash used in operating activities                                  |   |   | (11,470  | )      |   |   | (10,169  | )      |   |   | (9,650 | ) |
|                                                                        |   |   |     |   |   |   |     |   |   |   |   |   |
| Investing Activities:                                                       |   |   |     |   |   |   |     |   |   |   |   |   |
| Dividends      and distributions from subsidiaries                          |   |   | 305,000  |   |   |   | 190,000  |   |   |   | 1,600 |   |
| Net      cash provided by investing activities                              |   |   | 305,000  |   |   |   | 190,000  |   |   |   | 1,600 |   |
|                                                                        |   |   |     |   |   |   |     |   |   |   |   |   |
| Financing Activities:                                                       |   |   |     |   |   |   |     |   |   |   |   |   |
| Dividends      paid to preferred shareholders                               |   |   | (10,408  | )      |   |   | (10,408  | )      |   |   | (9,818 | ) |
| Dividends      paid to common shareholders                                  |   |   | (15,770  | )      |   |   | (18,632  | )      |   |   | (19,029 | ) |
| Proceeds      from exercise of share options                                |   |   | 25,941   |   |   |   | 23,435   |   |   |   | 12,974 |   |
| Purchase      of common shares                                              |   |   | (266,561 | )      |   |   | (240,672 | )      |   |   | - |   |
| Net      cash used in financing activities                                  |   |   | (266,798 | )      |   |   | (246,277 | )      |   |   | (15,873 | ) |
|                                                                        |   |   |     |   |   |   |     |   |   |   |   |   |
| Net      increase (decrease) in cash and cash equivalents                   |   |   | 26,732   |   |   |   | (66,446  | )      |   |   | (23,923 | ) |
| Cash      and cash equivalents at beginning of year                         |   |   | 39,593   |   |   |   | 106,039  |   |   |   | 129,962 |   |
|                                                                        |   |   |     |   |   |   |     |   |   |   |   |   |
| Cash      and cash equivalents at end of year                               |   | $      | 66,325   |   |   |   | 39,593   |   |   | $ | 106,039 |   |

----

| SCHEDULE      III |
|-------------------|

| Period                                       |   | Deferredpolicy      acquisition costs |    |   | Net      unpaid lossesand      loss adjustment expenses |   |      | Netunearned      premiums |   |   | Other      policy claims and benefits payable |   |   | Netearned      premium |    |   | Net      investment income |    |      | Net      lossesand      loss adjustment expenses incurred |   |   | Amortization      of deferred policy acquisition costs |   |    | Other      operating expenses |    |   | Netwritten      premiums |   |
|----------------------------------------------|--------|---------------------------------------|---------|--------|---------------------------------------------------------|--------|-----------|---------------------------|--------|--------|-----------------------------------------------|--------|--------|------------------------|---------|--------|----------------------------|---------|-----------|-----------------------------------------------------------|--------|--------|--------------------------------------------------------|--------|---------|-------------------------------|---------|--------|--------------------------|--------|
|                                         |   |                                  |    |   |                                                    |   |      |                      |   |   |                                          |   |   |                   |    |   |                       |    |      |                                                      |   |   |                                                   |   |    |                          |    |   |                     |   |
| Year      ended December 31,      2008: |   |                                  |    |   |                                                    |   |      |                      |   |   |                                          |   |   |                   |    |   |                       |    |      |                                                      |   |   |                                                   |   |    |                          |    |   |                     |   |
| Property      and Marine                     |   | $                                     | 8,816   |   |                                                    |   | 527,844   |                      |   |   | 42,739                                        |   |   |                   |    |   |                       | 599,110 |      |                                                      |   |   |                                                   |   | 397,200 |                          |    |   | 62,889                   |   |   |   |   |   | $ | 593,087 |   |
| Casualty                                     |   |                                  | 41,009  |   |                                                    |   | 1,754,386 |                      |   |   | 161,871                                       |   |   |                   |    |   |                       | 503,300 |      |                                                      |   |   |                                                   |   | 337,051 |                          |    |   | 102,868                  |   |   |   |   |   |   | 430,084 |   |
| Finite      Risk                             |   |                                  | 894     |   |                                                    |   | 169,815   |                      |   |   | 3,383                                         |   |   |                   |    |   |                       | 12,386  |      |                                                      |   |   |                                                   |   | (16,018 | )                             |    |   | 16,861                   |   |   |   |   |   |   | 14,394 |   |
| Total                                        |   |                                  | 50,719  |   |                                                    |   | 2,452,045 |                      |   |   | 207,993                                       |   |   |                   | – |   |                       |    | 1,114,796 |                                                      |   |   | 186,574                                                |   |    |                          | 718,233 |   |                     |   | 182,618 |   |   |   | 24,464 |   |   |   | 1,037,565 |   |
|                                         |   |                                  |    |   |                                                    |   |      |                      |   |   |                                          |   |   |                   |    |   |                       |    |      |                                                      |   |   |                                                   |   |    |                          |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Year      ended December 31,      2007: |   |                                  |    |   |                                                    |   |      |                      |   |   |                                          |   |   |                   |    |   |                       |    |      |                                                      |   |   |                                                   |   |    |                          |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Property      and Marine                     |   |                                  | 10,779  |   |                                                    |   | 432,268   |                      |   |   | 50,002                                        |   |   |                   |    |   |                       |    | 502,291   |                                                      |   |   |                                                   |   |    |                          | 195,398 |   |                     |   | 46,330 |   |   |   |   |   |   |   | 505,010 |   |
| Casualty                                     |   |                                  | 59,393  |   |                                                    |   | 1,700,597 |                      |   |   | 237,752                                       |   |   |                   |    |   |                       |    | 637,856   |                                                      |   |   |                                                   |   |    |                          | 444,701 |   |                     |   | 113,916 |   |   |   |   |   |   |   | 584,605 |   |
| Finite      Risk                             |   |                                  | 336     |   |                                                    |   | 209,320   |                      |   |   | 1,375                                         |   |   |                   |    |   |                       |    | 32,941    |                                                      |   |   |                                                   |   |    |                          | 15,388  |   |                     |   | 3,809 |   |   |   |   |   |   |   | 30,192 |   |
| Total                                        |   |                                  | 70,508  |   |                                                    |   | 2,342,185 |                      |   |   | 289,129                                       |   |   |                   | – |   |                       |    | 1,173,088 |                                                      |   |   | 214,222                                                |   |    |                          | 655,487 |   |                     |   | 164,055 |   |   |   | 29,281 |   |   |   | 1,119,807 |   |
|                                         |   |                                  |    |   |                                                    |   |      |                      |   |   |                                          |   |   |                   |    |   |                       |    |      |                                                      |   |   |                                                   |   |    |                          |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Year      ended December 31,      2006: |   |                                  |    |   |                                                    |   |      |                      |   |   |                                          |   |   |                   |    |   |                       |    |      |                                                      |   |   |                                                   |   |    |                          |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Property      and Marine                     |   |                                  | 9,969   |   |                                                    |   | 537,794   |                      |   |   | 46,022                                        |   |   |                   |    |   |                       |    | 448,959   |                                                      |   |   |                                                   |   |    |                          | 145,900 |   |                     |   | 47,183 |   |   |   |   |   |   |   | 424,929 |   |
| Casualty                                     |   |                                  | 72,641  |   |                                                    |   | 1,467,879 |                      |   |   | 289,966                                       |   |   |                   |    |   |                       |    | 764,341   |                                                      |   |   |                                                   |   |    |                          | 522,815 |   |                     |   | 114,880 |   |   |   |   |   |   |   | 757,675 |   |
| Finite      Risk                             |   |                                  | – |   |                                                    |   | 320,554   |                      |   |   | 4,124                                         |   |   |                   |    |   |                       |    | 123,401   |                                                      |   |   |                                                   |   |    |                          | 91,887  |   |                     |   | 58,695 |   |   |   |   |   |   |   | (5,991 | ) |
| Total                                        |   | $                                     | 82,610  |   |                                                    |   | 2,326,227 |                      |   |   | 340,112                                       |   |   |                   | – |   |                       |    | 1,336,701 |                                                      |   |   | 187,987                                                |   |    |                          | 760,602 |   |                     |   | 220,758 |   |   |   | 24,194 |   |   | $ | 1,176,613 |   |

----

| SCHEDULE      IV |
|------------------|

| Description                                   |   | Direct      Amount |    |   | Ceded      to other companies |   |    | Assumed      from other companies |   |   | Net      Amount |   |   | Percentage      of amount assumed to net |      |
|-----------------------------------------------|--------|--------------------|---------|--------|-------------------------------|--------|---------|-----------------------------------|--------|--------|-----------------|--------|--------|------------------------------------------|-----------|
|                                          |   |               |    |   |                          |   |    |                              |   |   |            |   |   |                                     |      |
| Property      and liability premiums written: |   |               |    |   |                          |   |    |                              |   |   |            |   |   |                                     |      |
| Year ended December 31,      2008:       |   |               |    |   |                          |   |    |                              |   |   |            |   |   |                                     |      |
| Property      and Marine                      |   |               | – |   |                          | $      | 29,084  |                              |   |   | 622,171         |   |   | $                                        | 593,087   |   |   |   | 104.9 | % |
| Casualty                                      |   |               | – |   |                          |   | (33     | )                                 |   |   | 430,051         |   |   |                                     | 430,084   |   |   |   | 100.0 | % |
| Finite      Risk                              |   |               | – |   |                          |   | – |                              |   |   | 14,394          |   |   |                                     | 14,394    |   |   |   | 100.0 | % |
| Total                                         |   |               | – |   |                          |   | 29,051  |                              |   |   | 1,066,616       |   |   |                                     | 1,037,565 |   |   |   | 102.8 | % |
|                                          |   |               |    |   |                          |   |    |                              |   |   |            |   |   |                                     |      |   |   |   |   |   |
| Year ended December 31,      2007:       |   |               |    |   |                          |   |    |                              |   |   |            |   |   |                                     |      |   |   |   |   |   |
| Property      and Marine                      |   |               | – |   |                          |   | 22,132  |                              |   |   | 527,142         |   |   |                                     | 505,010   |   |   |   | 104.4 | % |
| Casualty                                      |   |               | – |   |                          |   | 306     |                              |   |   | 584,911         |   |   |                                     | 584,605   |   |   |   | 100.1 | % |
| Finite      Risk                              |   |               | – |   |                          |   | (1,942  | )                                 |   |   | 28,250          |   |   |                                     | 30,192    |   |   |   | 93.6 | % |
| Total                                         |   |               | – |   |                          |   | 20,496  |                              |   |   | 1,140,303       |   |   |                                     | 1,119,807 |   |   |   | 101.8 | % |
|                                          |   |               |    |   |                          |   |    |                              |   |   |            |   |   |                                     |      |   |   |   |   |   |
| Year ended December 31,      2006:       |   |               |    |   |                          |   |    |                              |   |   |            |   |   |                                     |      |   |   |   |   |   |
| Property      and Marine                      |   |               | – |   |                          |   | 89,387  |                              |   |   | 514,316         |   |   |                                     | 424,929   |   |   |   | 121.0 | % |
| Casualty                                      |   |               | – |   |                          |   | 74      |                              |   |   | 757,749         |   |   |                                     | 757,675   |   |   |   | 100.0 | % |
| Finite      Risk                              |   |               | – |   |                          |   | 9,126   |                              |   |   | 3,135           |   |   |                                     | (5,991    | ) |   |   | (52.3 | )% |
| Total                                         |   |               | – |   |                          | $      | 98,587  |                              |   |   | 1,275,200       |   |   | $                                        | 1,176,613 |   |   |   | 108.4 | % |