----

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|  x | ANNUAL                  REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                  ACT OF                  1934     |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------|
|    | For                  the fiscal year ended December 31,                  2007                                                          |
|    | OR                                                                                                                                          |
|  o | TRANSITION                  REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                  ACT OF                  1934 |
|    | For                  the transition period from __________ to                  ___________                                                  |

| Bermuda(State                  or other jurisdiction ofincorporation                  or organization)                                                               | 98-0416483(I.R.S.                  EmployerIdentification                  No.) |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------|
| The                  Belvedere Building69                  Pitts Bay RoadPembroke,                  Bermuda(Address                  of principal executive offices) | HM                  08(Zip                  Code)                               |

| Title                  of each                  class                                                                                                                       | Name                  of each exchange                  on which registered |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------|
| Common                  Shares, par value $0.01 per share                                                                                                                   | New                  York Stock Exchange                                    |
| 6.00%                  Series A Mandatory Convertible Preferred Shares par value $0.01                  per share,                  liquidation preference $30.15 per share | New                  York Stock Exchange                                    |

| Large                  accelerated filer | X |   | Accelerated                  filer |   |   | Non-accelerated                  filer |   | Smaller                  Reporting Company |   |
|------------------------------------------|---|--------|------------------------------------|--------|--------|----------------------------------------|--------|--------------------------------------------|--------|

|                                                                                                                                                         | Page   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| PART                  I                                                                                                                                      |
| Item                  1. Business                                                                                                                       | 2      |
| Item                  1A. Risk Factors                                                                                                                  | 22     |
| Item                  1B. Unresolved Staff Comments                                                                                                     | 30     |
| Item                  2. Properties                                                                                                                          | 30     |
| Item                  3. Legal Proceedings                                                                                                                   | 30     |
| Item                  4. Submission of Matters to a Vote of Security Holders                                                                                 |   |
|                                                                                                                                                         |   |
| PART                  II                                                                                                                                     |
| Item                  5. Market For Registrant’s Common Equity, Related Shareholder Matters and                  Issuer Purchases of Equity Securities | 31     |
| Item                  6. Selected Financial Data                                                                                                             | 33     |
| Item                  7. Management’s Discussion and Analysis of Financial Condition                  andResults                  of Operations        | 33     |
| Item                  7A. Quantitative and Qualitative Disclosures About Market                  Risk                                                   | 57     |
| Item                  8. Financial Statements and Supplementary Data                                                                                         | 59     |
| Item                  9. Changes in and Disagreements With Accountants on Accounting                  and                  Financial Disclosure              | 59     |
| Item                  9A.  Controls and Procedures                                                                                                 | 59     |
| Item                  9B.  Other Information                                                                                                       | 61     |
|                                                                                                                                                         |   |
| PART                  III                                                                                                                                    |
| Item                  10. Directors, Executive Officers and Corporate Governance                                                                             | 61     |
| Item                  11. Executive Compensation                                                                                                             | 61     |
| Item                  12. Security Ownership of Certain Beneficial Owners and Management                  and                  Related Shareholder Matters   | 61     |
| Item                  13. Certain Relationships and Related Transactions, and Director                  Independence                                         | 62     |
| Item                  14. Principal Accountant Fees and Services                                                                                             | 62     |
|                                                                                                                                                         |   |
| PART                  IV                                                                                                                                     |
| Item                  15. Exhibits and Financial Statement Schedules                                                                                         | 62     |
|                                                                                                                                                         |   |
| Signatures                                                                                                                                                   | 62     |
| Platinum                  Underwriters Holdings, Ltd. And Subsidiaries Consolidated Financial                  Statements                                    | F-1    |
| Index                  to Schedules to Consolidated Financial Statements                                                                                     | S-1    |
| Exhibits                                                                                                                                                     |   |

----

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

|   | (2) | the                    effectiveness of our loss limitation methods and pricing models; |
|--------|-----|-----------------------------------------------------------------------------------------|

|   | (3) | the                    adequacy of our liability for unpaid losses and loss adjustment                    expenses; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------|

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

|   | (5) | the                    cyclicality of the property and casualty reinsurance business; |
|--------|-----|---------------------------------------------------------------------------------------|

|   | (6) | conducting                    operations in a competitive environment; |
|--------|-----|------------------------------------------------------------------------|

|   | (7) | our                    ability to maintain our business relationships with reinsurance                    brokers; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------|

|   | (8) | the                    availability of retrocessional reinsurance on acceptable terms; |
|--------|-----|----------------------------------------------------------------------------------------|

|   | (9) | market                    volatility and interest rate and currency exchange rate fluctuation; |
|--------|-----|------------------------------------------------------------------------------------------------|

|   | (10) | tax,                    regulatory or legal restrictions or limitations applicable to                    us or the                    property and casualty reinsurance business generally; |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (11) | general                    political and economic conditions, including the effects of civil                    unrest,                    acts of terrorism, war or a prolonged U.S. or global economic                    downturn or                    recession; and |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (12) | changes                    in our plans, strategies, objectives, expectations or intentions,                    which                    may happen at any time at our discretion. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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----

----

----

|   | ● | 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 catastrophe exposure through                  the                  application of sophisticated property catastrophe modeling tools                  and (iv)                  monitoring our accumulating exposures on non-property catastrophe                  exposed                  coverages. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Operate                  from a position of                  financial strength.  As of December 31, 2007, we had                  a total capitalization of $2,248,377,000.  Our capital position                  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 of diversified, high quality,                  predominantly publicly traded fixed maturities. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                          | Years                  Ended December 31, |      |
|-----------------------------------------------|------------------------------------------------|-----------|
|                                          | 2007                                           |      | 2006 |   | 2005 |   |
|                                          |                                           |      |   |   |   |   |   |   |   |   |   |   |
| Property                  and Marine          |                                           |      |   |   |   |   |   |   |   |   |   |   |
| Excess-of-loss                                | $                                              | 427,230   |   |   | 38 | % | 318,260 |   |   | 27 | % | $ | 412,781 |   |   | 24 | % |
| Proportional                                  |                                           | 77,780    |   |   | 7 | % | 106,669 |   |   | 9 | % |   | 162,274 |   |   | 9 | % |
| Subtotal                  Property and Marine |                                           | 505,010   |   |   | 45 | % | 424,929 |   |   | 36 | % |   | 575,055 |   |   | 33 | % |
|                                          |                                           |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Casualty                                      |                                           |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Excess-of-loss                                |                                           | 522,812   |   |   | 47 | % | 663,338 |   |   | 56 | % |   | 676,276 |   |   | 39 | % |
| Proportional                                  |                                           | 61,793    |   |   | 6 | % | 94,337 |   |   | 8 | % |   | 132,755 |   |   | 8 | % |
| Subtotal                  Casualty            |                                           | 584,605   |   |   | 53 | % | 757,675 |   |   | 64 | % |   | 809,031 |   |   | 47 | % |
|                                          |                                           |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Finite                  Risk                  |                                           |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Excess-of-loss                                |                                           | 26,140    |   |   | 2 | % | 50,220 |   |   | 4 | % |   | 63,628 |   |   | 4 | % |
| Proportional                                  |                                           | 4,052     |   |   | 0 | % | (56,211 | ) |   | (4 | %) |   | 270,008 |   |   | 16 | % |
| Subtotal                  Finite Risk         |                                           | 30,192    |   |   | 2 | % | (5,991 | ) |   | 0 | % |   | 333,636 |   |   | 20 | % |
|                                          |                                           |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Combined                  Segments            |                                           |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Excess-of-loss                                |                                           | 976,182   |   |   | 87 | % | 1,031,818 |   |   | 87 | % |   | 1,152,685 |   |   | 67 | % |
| Proportional                                  |                                           | 143,625   |   |   | 13 | % | 144,795 |   |   | 13 | % |   | 565,037 |   |   | 33 | % |
| Total                                         | $                                              | 1,119,807 |   |   | 100 | % | 1,176,613 |   |   | 100 | % | $ | 1,717,722 |   |   | 100 | % |

----

|                                          |   | Years                  Ended December 31, |      |
|-----------------------------------------------|--------|------------------------------------------------|-----------|
|                                          |   | 2007                                           |      | 2006 |   | 2005 |   |
| Property                  and Marine          |   |                                           |      |   |   |   |   |   |   |   |   |   |   |
| United                  States                |   | $                                              | 294,975   |   |   | 26 | % |   | 275,870 |   |   | 23 | % | $ | 401,270 |   |   | 23 | % |
| International                                 |   |                                           | 210,035   |   |   | 19 | % |   | 149,059 |   |   | 13 | % |   | 173,785 |   |   | 10 | % |
| Subtotal                  Property and Marine |   |                                           | 505,010   |   |   | 45 | % |   | 424,929 |   |   | 36 | % |   | 575,055 |   |   | 33 | % |
|                                          |   |                                           |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Casualty                                      |   |                                           |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| United                  States                |   |                                           | 510,552   |   |   | 45 | % |   | 686,278 |   |   | 58 | % |   | 718,103 |   |   | 42 | % |
| International                                 |   |                                           | 74,053    |   |   | 7 | % |   | 71,397 |   |   | 6 | % |   | 90,928 |   |   | 5 | % |
| Subtotal                  Casualty            |   |                                           | 584,605   |   |   | 52 | % |   | 757,675 |   |   | 64 | % |   | 809,031 |   |   | 47 | % |
|                                          |   |                                           |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Finite                  Risk                  |   |                                           |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| United                  States                |   |                                           | 29,932    |   |   | 3 | % |   | (12,626 | ) |   | (1 | %) |   | 329,843 |   |   | 19 | % |
| International                                 |   |                                           | 260       |   |   | 0 | % |   | 6,635 |   |   | 1 | % |   | 3,793 |   |   | 1 | % |
| Subtotal                  Finite Risk         |   |                                           | 30,192    |   |   | 3 | % |   | (5,991 | ) |   | 0 | % |   | 333,636 |   |   | 20 | % |
|                                          |   |                                           |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Combined                  Segments            |   |                                           |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| United                  States                |   |                                           | 835,459   |   |   | 74 | % |   | 949,522 |   |   | 80 | % |   | 1,449,216 |   |   | 84 | % |
| International                                 |   |                                           | 284,348   |   |   | 26 | % |   | 227,091 |   |   | 20 | % |   | 268,506 |   |   | 16 | % |
| Total                                         |   | $                                              | 1,119,807 |   |   | 100 | % |   | 1,176,613 |   |   | 100 | % | $ | 1,717,722 |   |   | 100 | % |

|   | ● | Property.  We                  provide reinsurance coverage for damage to property and                  crops.  Our catastrophe excess-of-loss reinsurance contracts                  provide a defined limit 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.  In addition, when our pricing standards are                  met, we write other property coverages, including per-risk excess-of-loss                  or proportional treaties.  We have also entered into an                  agreement with an underwriting manager to underwrite property facultative                  and program reinsurance risks. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | 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.  Marine reinsurance treaties include                  excess-of-loss as well as proportional treaties. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | ● | 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.  A claim must exceed the limit of some underlying policy                  for the claim to be considered under an umbrella policy.  We                  primarily reinsure commercial umbrella liability policies. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | 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.  In most circumstances, the underlying insurance                  products for these lines of business are 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 predominant 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 responds to claims                  arising from a single set of circumstances covered by more than                  one                  insurance policy or multiple claimants on one policy.  This type                  of reinsurance is analogous to property catastrophe reinsurance,                  but                  written for casualty lines of business.  Our casualty clash                  contracts are generally excess-of-loss reinsurance contracts with                  both                  occurrence limits and aggregate limits. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | 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 medical payments.  We generally reinsure                  automobile liability on an excess-of-loss basis.  Our                  predominant exposure arises from third party liability claims and                  the                  related legal defense costs. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | 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.  The majority of our surety reinsurance                  contracts are written on an excess-of-loss basis with an aggregate                  limit. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | 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.  We reinsure trade credit both on a proportional and an                  excess-of-loss basis. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Political                  Risk.  Political risk reinsurance covers the impairment                  of assets located primarily in emerging markets as the result of                  an act by                  the state.  Our clients provide coverage against expropriation,                  political violence, inconvertibility of currency, and non-honoring                  of                  sovereign obligation.  The locations of risks that we                  reinsure include Asia, Central and Eastern Europe, Latin America,                  Africa and the Middle East.  This business is written on a risk                  attaching basis either through quota share or excess of loss contracts. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | 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. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                                                       | 2007   |      | 2006   |   | 2005      |   |
|----------------------------------------------------------------------------|--------|-----------|--------|--------|-----------|--------|
| Net                  unpaid losses and LAE as of the beginning of the year | $      | 2,326,227 |   |   | 2,268,655 |   | $ | 1,379,227 |   |
|                                                                       |   |      |   |   |      |   |   |   |   |
| Net                  incurred losses and LAE related to:                   |   |      |   |   |      |   |   |   |   |
| Current                  year                                              |   | 745,865   |   |   | 811,250   |   |   | 1,577,944 |   |
| Prior                  years                                               |   | (90,378   | )      |   | (50,648   | )      |   | (72,519 | ) |
| Net                  incurred losses and LAE                               |   | 655,487   |   |   | 760,602   |   |   | 1,505,425 |   |
| Net                  paid losses and LAE:                                  |   |      |   |   |      |   |   |   |   |
| Current                  year                                              |   | 73,402    |   |   | 96,112    |   |   | 210,306 |   |
| Prior                  years                                               |   | 578,611   |   |   | 624,477   |   |   | 390,598 |   |
| Net                  paid losses and LAE                                   |   | 652,013   |   |   | 720,589   |   |   | 600,904 |   |
| Net                  effects of foreign currency exchange rate changes     |   | 12,484    |   |   | 17,559    |   |   | (15,093 | ) |
| Net                  unpaid losses and LAE as of the end of the year       |   | 2,342,185 |   |   | 2,326,227 |   |   | 2,268,655 |   |
| Reinsurance                  recoverable                                   |   | 18,853    |   |   | 42,255    |   |   | 55,335 |   |
| Gross                  unpaid losses and LAE at end of the year            | $      | 2,361,038 |   |   | 2,368,482 |   | $ | 2,323,990 |   |

----

|                                                                       |   | 2002   |    | 2003   |   | 2004    |   | 2005   |      | 2006   |   | 2007      |   |
|----------------------------------------------------------------------------|--------|--------|---------|--------|--------|---------|--------|--------|-----------|--------|--------|-----------|--------|
| Net                  unpaid losses and LAE at end of year                  |   | $      | 281,659 |   |   | 731,918 |   |   | 1,379,227 |   |   | 2,268,655 |   |   | 2,326,227 |   | $ | 2,342,185 |   |
| 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 |   |   |   |   |
| Two                  years later                                           |   |   | 194,422 |   |   | 604,891 |   |   | 1,277,627 |   |   | 2,149,153 |   |   |   |   |   |   |   |
| Three                  years later                                         |   |   | 176,884 |   |   | 603,293 |   |   | 1,254,213 |   |   |      |   |   |   |   |   |   |   |
| Four                  years later                                          |   |   | 175,683 |   |   | 601,719 |   |   |      |   |   |      |   |   |   |   |   |   |   |
| Five                  years later                                          |   |   | 173,546 |   |   |    |   |   |      |   |   |      |   |   |   |   |   |   |   |
| Net                  cumulative redundancy                                 |   |   | 108,113 |   |   | 130,199 |   |   | 125,014   |   |   | 119,502   |   |   | 90,378 |   |   |   |   |
| Adjustment                  for foreign currency exchange                  |   |   | 15,318  |   |   | 6,047   |   |   | (8,929    | )      |   | 5,975     |   |   | 1,992 |   |   |   |   |
| Cumulative                  redundancy excluding foreign currency exchange |   |   | 123,431 |   |   | 136,246 |   |   | 116,085   |   |   | 125,477   |   |   | 92,370 |   |   |   |   |
|                                                                       |   |   |    |   |   |    |   |   |      |   |   |      |   |   |   |   |   |   |   |
| Net                  cumulative paid losses and LAE as of:                 |   |   |    |   |   |    |   |   |      |   |   |      |   |   |   |   |   |   |   |
| One                  year later                                            |   |   | 41,709  |   |   | 205,889 |   |   | 388,700   |   |   | 624,006   |   |   | 551,176 |   |   |   |   |
| Two                  years later                                           |   |   | 62,604  |   |   | 265,376 |   |   | 536,351   |   |   | 1,043,973 |   |   |   |   |   |   |   |
| Three                  years later                                         |   |   | 73,908  |   |   | 320,399 |   |   | 688,953   |   |   |      |   |   |   |   |   |   |   |
| Four                  years later                                          |   |   | 90,982  |   |   | 371,633 |   |   |      |   |   |      |   |   |   |   |   |   |   |
| Five                  years later                                          |   |   | 107,135 |   |   |    |   |   |      |   |   |      |   |   |   |   |   |   |   |
|                                                                       |   |   |    |   |   |    |   |   |      |   |   |      |   |   |   |   |   |   |   |
| Gross                  liability-end of year                               |   |   | 281,659 |   |   | 736,934 |   |   | 1,380,955 |   |   | 2,323,990 |   |   | 2,368,482 |   |   | 2,361,038 |   |
| Reinsurance                  recoverable                                   |   |   | – |   |   | 5,016   |   |   | 1,728     |   |   | 55,335    |   |   | 42,255 |   |   | 18,853 |   |
| Net                  liability-end of year                                 |   |   | 281,659 |   |   | 731,918 |   |   | 1,379,227 |   |   | 2,268,655 |   |   | 2,326,227 |   | $ | 2,342,185 |   |
|                                                                       |   |   |    |   |   |    |   |   |      |   |   |      |   |   |   |   |   |   |   |
| Gross                  liability-re-estimated                              |   |   | 173,546 |   |   | 607,391 |   |   | 1,256,349 |   |   | 2,198,825 |   |   | 2,265,151 |   |   |   |   |
| Gross                  cumulative redundancy                               |   | $      | 108,113 |   |   | 129,543 |   |   | 124,606   |   |   | 125,165   |   | $ | 103,331 |   |   |   |   |

----

| U.S.                  Government                             | $      | 96,753    |   |
|--------------------------------------------------------------|--------|-----------|--------|
| Corporate                  bonds                             |   | 1,419,233 |   |
| Mortgage-backed                  and asset-backed securities |   | 1,388,242 |   |
| Municipal                  bonds                             |   | 282,961   |   |
| Foreign                  governments and states              |   | 174,552   |   |
| Subtotal                  - fixed maturities                 |   | 3,361,741 |   |
| Preferred                  stocks                            |   | 9,607     |   |
| Short-term                  investments                      |   | 13,876    |   |
| Total                                                        | $      | 3,385,224 |   |

----

|   | Fair                  Value |      | %                  of Total |   |
|--------|-----------------------------|-----------|-----------------------------|--------|
| Aaa    | $                           | 2,347,539 |                        | 69.6   | % |
| Aa     |                        | 503,698   |                        | 14.9   | % |
| A      |                        | 393,104   |                        | 11.7   | % |
| Baa    |                        | 127,007   |                        | 3.8    | % |
| Total  | $                           | 3,371,348 |                        | 100.0  | % |

|                                                         | AmortizedCost |      | Fair                  Value |   |
|--------------------------------------------------------------|---------------|-----------|-----------------------------|--------|
| Due                  in one year or less                     | $             | 331,802   |                        | $      | 331,502 |   |
| Due                  from one to five years                  |          | 927,318   |                        |   | 929,872 |   |
| Due                  from five to ten years                  |          | 349,243   |                        |   | 346,188 |   |
| Due                  in ten or more years                    |          | 205,132   |                        |   | 196,119 |   |
| Mortgage-backed                  and asset-backed securities |          | 1,401,486 |                        |   | 1,388,242 |   |
| Total                                                        | $             | 3,214,981 |                        | $      | 3,191,923 |   |

----

----

----

|   | (1) | is                  required, with respect to its general business, to maintain a minimum                  solvency margin equal to the greatest of: |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (A) | $100,000,000; |
|--------|-----|---------------|

|   | (B) | 50%                  of net premiums written (being gross premiums written less any                  premiums                  ceded by Platinum Bermuda, but Platinum Bermuda may not deduct                  more than                  25% of gross premiums when computing net premiums written); and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (C) | 15%                  of loss and other insurance reserves; |
|--------|-----|------------------------------------------------------------|

|   | (2) | shall                  not declare or pay any dividends during any financial year if it                  is in                  breach of its minimum solvency margin or minimum liquidity ratio                  or if the                  declaration or payment of such dividends would cause it to fail                  to meet                  such margin or ratio (and if it has failed to meet its minimum                  solvency                  margin or minimum liquidity ratio on the last day of any financial                  year,                  Platinum Bermuda is prohibited, without the approval of the Authority,                  from declaring or paying any dividends during the next financial                  year); |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | shall                  not in any financial year pay dividends which would exceed 25%                  of its                  total statutory capital and surplus (as shown on its previous financial                  year’s statutory balance sheet) unless it files with the Authority (at                  least seven days before payment of such dividends) an affidavit                  stating                  that it will continue to meet the required margins; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | before                  reducing by 15% or more its total statutory capital, as set out                  in its                  previous year’s financial statements, shall apply to the Authority for its                  approval, including completing an application with an affidavit                  stating                  that it will continue to meet the required margins; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | is                  required, at any time it fails to meet its solvency margin, within                  30 days                  (45 days where total statutory capital and surplus falls to $75                  million or                  less) after becoming aware of that failure or having reason to                  believe                  that such failure has occurred, to file with the Authority a written                  report containing certain information. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (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 Security Holders |
|------------------------------------------------------------------------------|

----

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

|                            |   | Price                  Range ofCommon                  Shares |   |
|---------------------------------|--------|---------------------------------------------------------------|--------|
| Year                            |   | High                                                          |   | Low |   |
| 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 |   |
|                            |   |                                                          |   |   |   |   |   |
| 2006:                           |   |                                                          |   |   |   |   |   |
| First                  Quarter  |   | $                                                             | 32.03  |   | $ | 28.00 |   |
| Second                  Quarter |   |                                                          | 30.00  |   |   | 26.14 |   |
| Third                  Quarter  |   |                                                          | 31.11  |   |   | 27.34 |   |
| Fourth                  Quarter |   | $                                                             | 31.41  |   | $ | 29.51 |   |

----

| Period                                                           |   | (a)Total                  Number of Shares Purchased |      |   | (b)Average                  Price paid per Share |   |   | (c)Total                  Number of Shares Purchased as Part of Publicly Announced Plans                  * |   |   | (d)Maximum                  Dollar Value of Shares that May Yet Be Purchased Under the Plan                  or                  Programs |   |
|------------------------------------------------------------------|--------|------------------------------------------------------|-----------|--------|--------------------------------------------------|--------|--------|-------------------------------------------------------------------------------------------------------------|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                             |   |                                                 |      |   |                                             |   |   |                                                                                                        |   |   |                                                                                                                                      |   |
| October                  1, 2007 – October 31, 2007        |   |                                                 | 344,200   |   |                                             | $      | 35.52  |                                                                                                        |   |   | 344,200                                                                                                                                   |   |   | $ | 243,312,000 |   |
| November                  1, 2007 – November 30, 2007      |   |                                                 | 2,321,524 |   |                                             |   | 35.46  |                                                                                                        |   |   | 2,321,524                                                                                                                                 |   |   |   | 168,701,000 |   |
| December                  1, 2007 – December 31, 2007 |   |                                                 | 808,900   |   |                                             |   | 36.02  |                                                                                                        |   |   | 808,900                                                                                                                                   |   |   |   | 126,300,908 |   |
| Total                                                            |   |                                                 | 3,474,624 |   |                                             | $      | 35.57  |                                                                                                        |   |   | 3,474,624                                                                                                                                 |   |   | $ | 126,300,908 |   |

|   | * | On                  August 4, 2004 the Board of Directors of the Company approved a                  program to repurchase up to $50,000,000 of the Company’s common                  shares.  On July 26, 2007 our Board of Directors approved                  an increase in the existing repurchase program to result in authority                  as                  of such date to repurchase up to a total of $250,000,000.  On                  October 25, 2007 our Board of Directors approved an additional                  increase to the repurchase program to result in authority as of                  such date                  to repurchase up to a total of $250,000,000.  On February 21,                  2008 our Board of Directors approved an additional increase in                  the                  repurchase program to result in authority as of such date to purchase                  a                  total of $250,000,000.  During the year ended December 31,                  2007 we purchased 6,934,655 of our common shares in the open market                  at an                  aggregate amount of $240,672,000 at a weighted average price of                  $34.71 per                  share.  The shares we purchased were canceled.  No                  repurchases of our common shares were made during 2006 or 2005. |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                       |   | Indexed                  Returns *Years                  Ending December 31, |   |
|------------------------------------------------------------|--------|-----------------------------------------------------------------------------------|--------|
|                                                       |   | 2003                                                                              |   | 2004 |   | 2005 |   | 2006 |   | 2007 |   |
|                                                       |   |                                                                              |   |   |   |   |   |   |   |   |   |
| Platinum                                                   |   | $                                                                                 | 115.23 |   |   | 120.72 |   |   | 121.85 |   |   | 122.67 |   |   | 142.30 |   |
| S&P                  500 Index                         |   |                                                                              | 128.68 |   |   | 142.69 |   |   | 149.70 |   |   | 173.34 |   |   | 182.86 |   |
| S&P                  500 Property & Casualty Index |   |                                                                              | 126.41 |   |   | 139.58 |   |   | 160.68 |   |   | 181.36 |   |   | 156.04 |   |

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

Five-Year        Summary of Selected Financial        Data

|                                                                       | As                  of and for the years ended December 31, |      |
|----------------------------------------------------------------------------|------------------------------------------------------------------|-----------|
|                                                                       | 2007                                                             |      | 2006 |   | 2005 |   | 2004 |   | 2003 |   |
| Statement                  of                  Operations Data:            |                                                             |      |   |   |   |   |   |   |   |   |
| Net                  premiums written                                      | $                                                                | 1,119,807 |   | 1,176,613 |   | 1,717,722 |   | 1,646,013 |   | $ | 1,172,142 |   |
| Net                  premiums earned                                       |                                                             | 1,173,088 |   | 1,336,701 |   | 1,714,723 |   | 1,447,935 |   |   | 1,067,527 |   |
| Net                  investment income                                     |                                                             | 214,222   |   | 187,987 |   | 129,445 |   | 84,532 |   |   | 57,645 |   |
| Net                  losses and LAE                                        |                                                             | 655,487   |   | 760,602 |   | 1,505,425 |   | 1,019,804 |   |   | 584,171 |   |
| Underwriting                  expenses                                     |                                                             | 294,642   |   | 357,219 |   | 458,804 |   | 380,958 |   |   | 320,754 |   |
| Net                  income (loss)                                         |                                                             | 356,978   |   | 329,657 |   | (137,487 | ) | 84,783 |   |   | 144,823 |   |
|                                                                       |                                                             |      |   |   |   |   |   |   |   |   |   |   |
| Basic                  earnings (loss) per                  common share   |                                                             | 5.91      |   | 5.38 |   | (3.01 | ) | 1.96 |   |   | 3.37 |   |
| Diluted                  earnings (loss) per                  common share |                                                             | 5.38      |   | 4.96 |   | (3.01 | ) | 1.81 |   |   | 3.09 |   |
| Dividends                  declared per                  common share      | $                                                                | 0.32      |   | 0.32 |   | 0.32 |   | 0.32 |   | $ | 0.32 |   |
|                                                                       |                                                             |      |   |   |   |   |   |   |   |   |   |   |
| Balance                  Sheet                  Data:                      |                                                             |      |   |   |   |   |   |   |   |   |   |   |
| Total                  investments and cash                                | $                                                                | 4,461,503 |   | 4,228,937 |   | 3,830,428 |   | 2,456,868 |   | $ | 1,790,509 |   |
| Premiums                  receivable                                       |                                                             | 244,360   |   | 377,183 |   | 567,449 |   | 580,048 |   |   | 487,441 |   |
| Total                  assets                                              |                                                             | 5,078,750 |   | 5,093,567 |   | 5,154,375 |   | 3,421,995 |   |   | 2,485,572 |   |
| Unpaid                  losses and LAE                                     |                                                             | 2,361,038 |   | 2,368,482 |   | 2,323,990 |   | 1,380,955 |   |   | 736,934 |   |
| Unearned                  premiums                                         |                                                             | 298,498   |   | 349,792 |   | 502,018 |   | 502,423 |   |   | 305,985 |   |
| Debt                  obligations                                          |                                                             | 250,000   |   | 292,840 |   | 292,840 |   | 137,500 |   |   | 137,500 |   |
| Shareholders’                  equity                                |                                                             | 1,998,377 |   | 1,858,061 |   | 1,540,249 |   | 1,133,003 |   |   | 1,067,203 |   |
|                                                                       |                                                             |      |   |   |   |   |   |   |   |   |   |   |
| Book                  value per common share                               | $                                                                | 34.04     |   | 28.33 |   | 23.22 |   | 26.30 |   | $ | 24.79 |   |

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

----

Overview

----

|                                           | December 31, |    |
|------------------------------------------------|-------------------|---------|
|                                           | 2007              |    | 2006 |   | 2005 |   |
| Estimated                  premiums receivable | $                 | 195,890 |   | 315,243 |   | $ | 501,533 |   |
| Reported                  premiums receivable  |              | 48,470  |   | 61,941 |   |   | 36,749 |   |
| Total                  premiums receivable     | $                 | 244,360 |   | 377,184 |   | $ | 538,282 |   |

----

|                                               | Propertyand                  Marine |    | Casualty |   | Finite                  Risk |   | Total  |    |
|----------------------------------------------------|-------------------------------------|---------|----------|--------|------------------------------|--------|--------|---------|
| December 31,                  2007            |                                |    |     |   |                         |   |   |    |
| Gross                  case reserves               | $                                   | 235,673 |     |   | 331,931                      |   |   | 70,873  |   | $ | 638,477 |   |
| Additional                  case reserves          |                                | 778     |     |   | 21,329                       |   |   | – |   |   | 22,107 |   |
| Gross                  IBNR                        |                                | 212,446 |     |   | 1,347,337                    |   |   | 140,671 |   |   | 1,700,454 |   |
| Total                  gross unpaid losses and LAE | $                                   | 448,897 |     |   | 1,700,597                    |   |   | 211,544 |   | $ | 2,361,038 |   |
|                                               |                                |    |     |   |                         |   |   |    |   |   |   |   |
| December 31,                  2006            |                                |    |     |   |                         |   |   |    |   |   |   |   |
| Gross                  case reserves               | $                                   | 336,260 |     |   | 250,871                      |   |   | 113,897 |   | $ | 701,028 |   |
| Additional                  case reserves          |                                | 243     |     |   | 18,576                       |   |   | – |   |   | 18,819 |   |
| Gross                  IBNR                        |                                | 235,932 |     |   | 1,198,432                    |   |   | 214,271 |   |   | 1,648,635 |   |
| Total                  gross unpaid losses and LAE | $                                   | 572,435 |     |   | 1,467,879                    |   |   | 328,168 |   | $ | 2,368,482 |   |

----

----

| Reinsurance                  Recoverable |
|------------------------------------------|

| Uncertainty                  of Estimates |
|-------------------------------------------|

----

|                                                          | Paid                  % |   |   | Reported                  % |   |
|---------------------------------------------------------------|-------------------------|--------|--------|-----------------------------|--------|
| 2004                  Hurricanes as of December 31, 2006 |                    | 86     | %      |                        |   | 97 | % |
| 2005                  Hurricanes as of December 31, 2007 |                    | 82     | %      |                        |   | 94 | % |

| Sensitivity                  of Estimates |
|-------------------------------------------|

----

|                        | 2007 |    | 2006   |   | Increase |   |
|-----------------------------|------|---------|--------|--------|----------|--------|
| Net                  income | $    | 356,978 |   |   | 329,657  |   | $ | 27,321 |   |

|                                    | 2007   |      | 2006   |   | Decrease  |   |
|-----------------------------------------|--------|-----------|--------|--------|-----------|--------|
| Gross                  premiums written | $      | 1,140,303 |   |   | 1,275,200 |   | $ | 134,897 |   |
| Ceded                  premiums written |   | 20,496    |   |   | 98,587    |   |   | 78,091 |   |
| Net                  premiums written   |   | 1,119,807 |   |   | 1,176,613 |   |   | 56,806 |   |
|                                    |   |      |   |   |      |   |   |   |   |
| Gross                  premiums earned  |   | 1,193,894 |   |   | 1,434,282 |   |   | 240,388 |   |
| Ceded                  premiums earned  |   | 20,806    |   |   | 97,581    |   |   | 76,775 |   |
| Net                  premiums earned    | $      | 1,173,088 |   |   | 1,336,701 |   | $ | 163,613 |   |

----

|                                     | 2007   |    | 2006   |   | Decrease |   |
|------------------------------------------|--------|---------|--------|--------|----------|--------|
| Net                  losses and LAE      | $      | 655,487 |   |   | 760,602  |   | $ | 105,115 |   |
| Net                  loss and LAE ratios |   | 55.9    | %      |   | 56.9     | %      | 1.0                  points |   |

----

|                                            | 2007   |    |   | 2006   |   |    | Decrease |   |
|-------------------------------------------------|--------|---------|--------|--------|--------|---------|----------|--------|
| Net                  acquisition expenses       | $      | 220,330 |   |   |   | 285,923 |     |   | $ | 65,593 |   |
| Net                  acquisition expense ratios |   | 18.8    | %      |   |   | 21.4    | %        |   | 2.6                  points |   |

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

----

|                               |   | 2006 |    |   | 2005   |   |     | Increase |   |
|------------------------------------|--------|------|---------|--------|--------|--------|----------|----------|--------|
| Net                  income (loss) |   | $    | 329,657 |   |   |   | (137,487 | )        |   | $ | 467,144 |   |

| Gross                  losses and LAE                                 | $      | 654,090 |   |
|-----------------------------------------------------------------------|--------|---------|--------|
| Retrocessional                  reinsurance                           |   | (73,800 | )      |
| Net                  losses and LAE                                   |   | 580,290 |   |
| Additional                  net premiums earned                       |   | (46,666 | )      |
| Profit                  commissions                                   |   | (3,654  | )      |
| Net                  adverse impact on loss before income tax benefit | $      | 529,970 |   |

|                                    |   | 2006   |      | 2005   |   | Increase(decrease) |   |
|-----------------------------------------|--------|--------|-----------|--------|--------|--------------------|--------|
| Gross                  premiums written |   | $      | 1,275,200 |   |   | 1,765,155          |   | $ | (489,955 | ) |
| Ceded                  premiums written |   |   | 98,587    |   |   | 47,433             |   |   | 51,154 |   |
| Net                  premiums written   |   |   | 1,176,613 |   |   | 1,717,722          |   |   | (541,109 | ) |
|                                    |   |   |      |   |   |               |   |   |   |   |
| Gross                  premiums earned  |   |   | 1,434,282 |   |   | 1,757,138          |   |   | (322,856 | ) |
| Ceded                  premiums earned  |   |   | 97,581    |   |   | 42,415             |   |   | 55,166 |   |
| Net                  premiums earned    |   | $      | 1,336,701 |   |   | 1,714,723          |   | $ | (378,022 | ) |

----

|                                     |   | 2006   |    |   | 2005   |   |      | Decrease |   |
|------------------------------------------|--------|--------|---------|--------|--------|--------|-----------|----------|--------|
| Net                  losses and LAE      |   | $      | 760,602 |   |   |   | 1,505,425 |     |   | $ | 744,823 |   |
| Net                  loss and LAE ratios |   |   | 56.9    | %      |   |   | 87.8      | %        |   | 30.9                  points |   |

|                                            |   | 2006   |    |   | 2005   |   |    | Decrease |   |
|-------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|----------|--------|
| Net                  acquisition expenses       |   | $      | 285,923 |   |   |   | 403,135 |     |   | $ | 117,212 |   |
| Net                  acquisition expense ratios |   |   | 21.4    | %      |   |   | 23.5    | %        |   | 2.1                  points |   |

----

|                                    | 2006   |   |   | 2005   |   |    | Increase(decrease) |   |
|-----------------------------------------|--------|--------|--------|--------|--------|---------|--------------------|--------|
| Income                  taxes (benefit) | $      | 30,167 |   |   |   | (24,967 | )                  |   | $ | 55,134 |   |
| Effective                  tax rates    |   | 8.4    | %      |   |   | 15.4    | %                  |   | (7.0)                  points |   |

|                                                                 |   | Propertyand                  Marine |    |    | Casualty |   |    | Finite                  Risk |   |   | Total  |   |
|----------------------------------------------------------------------|--------|-------------------------------------|---------|---------|----------|--------|---------|------------------------------|--------|--------|--------|--------|
| 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 losses on investments                  |   |                                |    | (2,615  | )        |
| Net                  foreign currency exchange gains                 |   |                                |    | 2,775   |     |
| Other                  expense                                       |   |                                |    | (5,787  | )        |
| 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 gains on investments                   |   |   |                                      | 1,090    |   |
| Net                  foreign currency exchange gains                 |   |   |                                      | 738      |   |
| Other                  expense                                       |   |   |                                      | (2,872   | )      |
| 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        | %      |
|                                                                 |   |   |                                      |     |   |   |           |   |   |   |                               |   |   |   |        |   |
| Year                  ended                  December 31, 2005: |   |   |                                      |     |   |   |           |   |   |   |                               |   |   |   |        |   |
| Net                  premiums written                                |   | $      | 575,055                                   |     |   |   | 809,031        |   |   |   | 333,636                            |   |   | $      | 1,717,722   |   |
| Net                  premiums earned                                 |   |   | 569,173                                   |     |   |   | 789,629        |   |   |   | 355,921                            |   |   |   | 1,714,723   |   |
| Net                  losses and LAE                                  |   |   | 756,742                                   |     |   |   | 511,609        |   |   |   | 237,074                            |   |   |   | 1,505,425   |   |
| Net                  acquisition expenses                            |   |   | 93,983                                    |     |   |   | 194,397        |   |   |   | 114,755                            |   |   |   | 403,135     |   |
| Other                  underwriting expenses                         |   |   | 26,074                                    |     |   |   | 24,690         |   |   |   | 4,905                              |   |   |   | 55,669      |   |
| Segment                  underwriting income (loss)                  |   | $      | (307,626                                  | )        |   |   | 58,933         |   |   |   | (813                               | )      |   |   | (249,506    | )      |
|                                                                 |   |   |                                      |     |   |   |           |   |   |   |                               |   |   |   |        |   |
| Net                  investment income                               |   |   |                                      | 129,445  |   |
| Net                  realized losses on investments                  |   |   |                                      | (3,046   | )      |
| Net                  foreign currency exchange losses                |   |   |                                      | (2,111   | )      |
| Other                  expense                                       |   |   |                                      | (586     | )      |
| Corporate                  expenses not allocated to segments        |   |   |                                      | (14,158  | )      |
| Interest                  expense                                    |   |   |                                      | (20,006  | )      |
| Loss                  on repurchase of debt                          |   |   |                                      | (2,486   | )      |
| Loss                  before income tax benefit                      |   |   | $                                         | (162,454 | )      |
|                                                                 |   |   |                                      |     |   |   |           |   |   |   |                               |   |   |   |        |   |
| Ratios:                                                              |   |   |                                      |     |   |   |           |   |   |   |                               |   |   |   |        |   |
| Net                  loss and LAE                                    |   |   | 133.0                                     | %        |   |   | 64.8           | %      |   |   | 66.6                               | %      |   |   | 87.8        | %      |
| Net                  acquisition expense                             |   |   | 16.5                                      | %        |   |   | 24.6           | %      |   |   | 32.2                               | %      |   |   | 23.5        | %      |
| Other                  underwriting expense                          |   |   | 4.6                                       | %        |   |   | 3.1            | %      |   |   | 1.4                                | %      |   |   | 3.2         | %      |
| Combined                                                             |   |   | 154.1                                     | %        |   |   | 92.5           | %      |   |   | 100.2                              | %      |   |   | 114.5       | %      |

----

|                                    |   | 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 |   |
|                                    |   |   |    |   |   |   |    |               |   |   |   |   |
| Gross                  premiums earned  |   |   | 524,743 |   |   |   | 535,988 |               |   |   | (11,245 | ) |
| Ceded                  premiums earned  |   |   | 22,452  |   |   |   | 87,029  |               |   |   | (64,577 | ) |
| Net                  premiums earned    |   | $      | 502,291 |   |   |   | 448,959 |               |   | $ | 53,332 |   |

|                                     |   | 2007   |    |   | 2006   |   |    | Increase |   |
|------------------------------------------|--------|--------|---------|--------|--------|--------|---------|----------|--------|
| Net                  losses and LAE      |   | $      | 195,398 |   |   |   | 145,900 |     |   | $ | 49,498 |   |
| Net                  loss and LAE ratios |   |   | 38.9    | %      |   |   | 32.5    | %        |   | 6.4                  points |   |

|                                            |   | 2007   |   |   | 2006   |   |   | Decrease |   |
|-------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|----------|--------|
| Net                  acquisition expenses       |   | $      | 68,351 |   |   |   | 70,905 |     |   | $ | 2,554 |   |
| Net                  acquisition expense ratios |   |   | 13.6   | %      |   |   | 15.8   | %        |   | 2.2                  points |   |

7,787,000 and $7,829,000, respectively,        relating to a Services and        Capacity Reservation Agreement with Renaissance Re Holdings Ltd.        ("RenaissanceRe") effective October 1, 2002 (the "RenRe Agreement") pursuant        to        which RenaissanceRe provided consulting services to us in connection with        our        property catastrophe book of business.  The RenRe Agreement expired on        September 30, 2007 and was not renewed.

----

|                                    |   | 2006   |    |   | 2005   |   |    | Increase(decrease) |   |
|-----------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------------------|--------|
| Gross                  premiums written |   | $      | 514,316 |   |   |   | 596,576 |               |   | $ | (82,260 | ) |
| Ceded                  premiums written |   |   | 89,387  |   |   |   | 21,521  |               |   |   | 67,866 |   |
| Net                  premiums written   |   |   | 424,929 |   |   |   | 575,055 |               |   |   | (150,126 | ) |
|                                    |   |   |    |   |   |   |    |               |   |   |   |   |
| Gross                  premiums earned  |   |   | 535,988 |   |   |   | 586,500 |               |   |   | (50,512 | ) |
| Ceded                  premiums earned  |   |   | 87,029  |   |   |   | 17,327  |               |   |   | 69,702 |   |
| Net                  premiums earned    |   | $      | 448,959 |   |   |   | 569,173 |               |   | $ | (120,214 | ) |

|                                     |   | 2006   |    |   | 2005   |   |    | Decrease |   |
|------------------------------------------|--------|--------|---------|--------|--------|--------|---------|----------|--------|
| Net                  losses and LAE      |   | $      | 145,900 |   |   |   | 756,742 |     |   | $ | 610,842 |   |
| Net                  loss and LAE ratios |   |   | 32.5    | %      |   |   | 133.0   | %        |   | 100.5                  points |   |

|                                            |   | 2006   |   |   | 2005   |   |   | Decrease |   |
|-------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|----------|--------|
| Net                  acquisition expenses       |   | $      | 70,905 |   |   |   | 93,983 |     |   | $ | 23,078 |   |
| Net                  acquisition expense ratios |   |   | 15.8   | %      |   |   | 16.5   | %        |   | 0.7                  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 | ) |
|                                    |   |   |    |   |   |   |    |               |   |   |   |   |
| Gross                  premiums earned  |   |   | 638,152 |   |   |   | 764,414 |               |   |   | (126,262 | ) |
| Ceded                  premiums earned  |   |   | 296     |   |   |   | 73      |               |   |   | 223 |   |
| Net                  premiums earned    |   | $      | 637,856 |   |   |   | 764,341 |               |   | $ | (126,485 | ) |

|                                     |   | 2007   |    |   | 2006   |   |    | Increase(decrease) |   |
|------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------------------|--------|
| Net                  losses and LAE      |   | $      | 444,701 |   |   |   | 522,815 |               |   | $ | (78,114 | ) |
| Net                  loss and LAE ratios |   |   | 69.7    | %      |   |   | 68.4    | %                  |   | 1.3                  points |   |

----

|                                            |   | 2007   |    |   | 2006   |   |    | Decrease |   |
|-------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|----------|--------|
| Net                  acquisition expenses       |   | $      | 145,969 |   |   |   | 188,717 |     |   | $ | 42,748 |   |
| Net                  acquisition expense ratios |   |   | 22.9    | %      |   |   | 24.7    | %        |   | 1.8                  points |   |

|                                    |   | 2006   |    |   | 2005   |   |    | Decrease |   |
|-----------------------------------------|--------|--------|---------|--------|--------|--------|---------|----------|--------|
| Gross                  premiums written |   | $      | 757,749 |   |   |   | 809,164 |     |   | $ | 51,415 |   |
| Ceded                  premiums written |   |   | 74      |   |   |   | 133     |     |   |   | 59 |   |
| Net                  premiums written   |   |   | 757,675 |   |   |   | 809,031 |     |   |   | 51,356 |   |
|                                    |   |   |    |   |   |   |    |     |   |   |   |   |
| Gross                  premiums earned  |   |   | 764,414 |   |   |   | 790,290 |     |   |   | 25,876 |   |
| Ceded                  premiums earned  |   |   | 73      |   |   |   | 661     |     |   |   | 588 |   |
| Net                  premiums earned    |   | $      | 764,341 |   |   |   | 789,629 |     |   | $ | 25,288 |   |

|                                     |   | 2006   |    |   | 2005   |   |    | Increase |   |
|------------------------------------------|--------|--------|---------|--------|--------|--------|---------|----------|--------|
| Net                  losses and LAE      |   | $      | 522,815 |   |   |   | 511,609 |     |   | $ | 11,206 |   |
| Net                  loss and LAE ratios |   |   | 68.4    | %      |   |   | 64.8    | %        |   | 3.6                  points |   |

|                                            |   | 2006   |    |   | 2005   |   |    | Increase(decrease) |   |
|-------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------------------|--------|
| Net                  acquisition expenses       |   | $      | 188,717 |   |   |   | 194,397 |               |   | $ | (5,680 | ) |
| Net                  acquisition expense ratios |   |   | 24.7    | %      |   |   | 24.6    | %                  |   | 0.1                  point |   |

----

|                                    |   | 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 |   |
|                                    |   |   |   |   |   |   |    |               |   |   |   |   |
| Gross                  premiums earned  |   |   | 30,999 |   |   |   | 133,880 |               |   |   | (102,881 | ) |
| Ceded                  premiums earned  |   |   | (1,942 | )      |   |   | 10,479  |               |   |   | (12,421 | ) |
| Net                  premiums earned    |   | $      | 32,941 |   |   |   | 123,401 |               |   | $ | (90,460 | ) |

|                                                          |   | 2007   |   |   | 2006   |   |    | Decrease |   |
|---------------------------------------------------------------|--------|--------|--------|--------|--------|--------|---------|----------|--------|
| Net                  losses and LAE                           |   | $      | 15,388 |   |   |   | 91,887  |     |   | $ | 76,499 |   |
| Net                  acquisition expenses                     |   |   | 6,010  |   |   |   | 26,301  |     |   |   | 20,291 |   |
| Net                  losses, LAE and acquisition expenses     |   | $      | 21,398 |   |   |   | 118,188 |     |   | $ | 96,790 |   |
| Net                  loss, LAE and acquisition expense ratios |   |   | 65.0   | %      |   |   | 95.8    | %        |   | 30.8                  points |   |

----

|                                    |   | 2006   |    |   | 2005   |   |    | Decrease |   |
|-----------------------------------------|--------|--------|---------|--------|--------|--------|---------|----------|--------|
| Gross                  premiums written |   | $      | 3,135   |   |   |   | 359,415 |     |   | $ | 356,280 |   |
| Ceded                  premiums written |   |   | 9,126   |   |   |   | 25,779  |     |   |   | 16,653 |   |
| Net                  premiums written   |   |   | (5,991  | )      |   |   | 333,636 |     |   |   | 339,627 |   |
|                                    |   |   |    |   |   |   |    |     |   |   |   |   |
| Gross                  premiums earned  |   |   | 133,880 |   |   |   | 380,348 |     |   |   | 246,468 |   |
| Ceded                  premiums earned  |   |   | 10,479  |   |   |   | 24,427  |     |   |   | 13,948 |   |
| Net                  premiums earned    |   | $      | 123,401 |   |   |   | 355,921 |     |   | $ | 232,520 |   |

|                                                          |   | 2006   |    |   | 2005   |   |    | Decrease |   |
|---------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|----------|--------|
| Net                  losses and LAE                           |   | $      | 91,887  |   |   |   | 237,074 |     |   | $ | 145,187 |   |
| Net                  acquisition expenses                     |   |   | 26,301  |   |   |   | 114,755 |     |   |   | 88,454 |   |
| Net                  losses, LAE and acquisition expenses     |   | $      | 118,188 |   |   |   | 351,829 |     |   | $ | 233,641 |   |
| Net                  loss, LAE and acquisition expense ratios |   |   | 95.8    | %      |   |   | 98.8    | %        |   | 3.0                  points |   |

|                                       |   | 2007   |      |   | 2006   |   |      | Increase(decrease) |   |
|--------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------------------|--------|
| Cash                  and cash equivalents |   | $      | 1,076,279 |   |   |   | 851,652   |               |   | $ | 224,627 |   |
| Fixed                  maturities          |   |   | 3,361,741 |   |   |   | 3,334,645 |               |   |   | 27,096 |   |
| Preferred                  stocks          |   |   | 9,607     |   |   |   | 10,772    |               |   |   | (1,165 | ) |
| Short-term                  investments    |   |   | 13,876    |   |   |   | 27,123    |               |   |   | (13,247 | ) |
| Total                                      |   | $      | 4,461,503 |   |   |   | 4,224,192 |               |   | $ | 237,311 |   |

----

|                                                                 | AmortizedCost |      | FairValue |   | WeightedAverageCredit                    Rating |
|----------------------------------------------------------------------|---------------|-----------|-----------|--------|-------------------------------------------------|
| U.S.                    Government agency mortgage-backed securities | $             | 175,606   |      | $      | 171,982                                         |   | Aaa |
| Commercial                    mortgage-backed securities             |          | 374,592   |      |   | 369,011                                         |   | Aaa |
| Asset-backed                    securities                           |          | 219,851   |      |   | 214,004                                         |   | Aaa |
| Residential                    mortgage backed bonds                 |          | 631,437   |      |   | 633,245                                         |   | Aa |
| Total                    mortgage-backed and asset-backed securities | $             | 1,401,486 |      | $      | 1,388,242                                       |   | Aaa |

|                                                      |   | AmortizedCost |   | Fair                  Value |   |
|-----------------------------------------------------------|--------|---------------|--------|-----------------------------|--------|
| Vintage                  year 2005 and ratings of Aa or A |   | $             | 38,138 |                        | $      | 32,209 |   |
| Vintage                  year 2006 and ratings of Aaa     |   |          | 3,995  |                        |   | 3,188 |   |
| Total                                                     |   | $             | 42,133 |                        | $      | 35,397 |   |

----

----

nless all accrued, cumulated        and unpaid dividends on our        preferred shares for all past quarterly dividend periods have been paid in        full        we cannot declare or pay any dividends or make any distributions to any of        our        common shareholders.  Additionally, under the Companies Act, Platinum        Holdings may declare or pay a dividend only if, among other things, it has        reasonable grounds for believing that it is, or after the payment would be,        able        to pay its liabilities as they become due and if the realizable value of        its        assets would thereby not be less than the aggregate of its liabilities and        issued share capital and share premium accounts.  Accordingly, there        is no assurance that dividends will be declared or paid in the        future.

----

| Contractual                  Obligations                                   |   | Total  |      | Less                  than 1 year |   | 1–                  3years |   | 3–                  5Years |    |   | More                  than 5 years |    |
|----------------------------------------------------------------------------|--------|--------|-----------|-----------------------------------|--------|----------------------------------|--------|----------------------------------|---------|--------|------------------------------------|---------|
| Series                  B Notes due June 1,                  2017 (1) |   | $      | 250,000   |                              |   | –                          |   |                             | – |   |                               | – |   |   | $ | 250,000 |   |
| Scheduled                  interest payments                               |   |   | 178,125   |                              |   | 18,750                           |   |                             | 37,500  |   |                               | 37,500  |   |   |   | 84,375 |   |
| Subtotal                  – Debt Obligations                         |   |   | 428,125   |                              |   | 18,750                           |   |                             | 37,500  |   |                               | 37,500  |   |   |   | 334,375 |   |
| Operating                  Leases (2)                                      |   |   | 12,919    |                              |   | 2,912                            |   |                             | 5,045   |   |                               | 3,995   |   |   |   | 967 |   |
| Gross                  unpaid losses and LAE (3)                           |   | $      | 2,361,038 |                              |   | 614,793                          |   |                             | 808,262 |   |                               | 446,755 |   |   | $ | 491,228 |   |

|   | (1) | See                  note 5 of the Notes to the Consolidated Financial Statements. |
|--------|-----|------------------------------------------------------------------------------------|

|   | (2) | See                  note 12 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, 2007.  There are reinsurance                  contracts that have terms extending into 2008 under which additional                  obligations will be incurred. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Outlook

----

| Item                  7A. Quantitative and Qualitative Disclosures about Market Risk |
|--------------------------------------------------------------------------------------|

----

|                                                                |    | Interest                  Rate Shift in Basis Points |
|---------------------------------------------------------------------|---------|------------------------------------------------------|
|                                                                |    | -                  100 bp                            |   | -                  50 bp |   | Current |   | +                  50 bp |   | +                  100 bp |
| Total                  market value                                 | $       | 3,458,285                                            |   | 3,411,580 |   | 3,361,741 |   | 3,312,428 | $  | 3,260,579 |
| Percent                  change in market value                     |    | 2.9%                                                 |   | 1.5% |   | – |   | (1.5%) |   | (3.0%) |
| Resulting                  unrealized appreciation / (depreciation) | $  | 69,714                                               |   | 23,009 |   | (26,830) |   | (76,143) | $  | (127,992) |

|                                    |   | CarryingAmount |      |   | Fair                  Value |   |
|-----------------------------------------|--------|----------------|-----------|--------|-----------------------------|--------|
| Financial                  assets:      |   |           |      |   |                        |   |
| Fixed                  maturities       |   | $              | 3,361,741 |   |                        | $      | 3,361,741 |   |
| Preferred                  stocks       |   |           | 9,607     |   |                        |   | 9,607 |   |
| Short-term                  investments |   |           | 13,876    |   |                        |   | 13,876 |   |
| Financial                  liabilities: |   |           |      |   |                        |   |   |   |
| Debt                  obligations       |   | $              | 250,000   |   |                        | $      | 253,800 |   |

----

| 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 ACCOUNTING        FIRM

----

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

| Item                  10. Directors, Executive Officers and Corporate Governance |
|----------------------------------------------------------------------------------|

| 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) |   |                                                                                                                                              | 3,269,669 |   |                                                                                            | $      | 26.22   |                                                                                                                                                                                              |   |   | 4,657,879 |   |
| Equity                  compensation plans not approved by security holders |   |                                                                                                                                              | —   |   |                                                                                            |   | — |                                                                                                                                                                                              |   |   | — |   |
| Total                                                                       |   |                                                                                                                                              | 3,269,669 |   |                                                                                            | $      | 26.22   |                                                                                                                                                                                              |   |   | 4,657,879 |   |

|   | (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 Incentive 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) |
| 10.1*                           |   | Share                  Unit Plan for Non-Employee Directors. (23)                                                                                                                                                                                       |
| 10.2*                           |   | Form                  of Nonemployee Director Share Unit Award Agreement. (22)                                                                                                                                                                          |
| 10.3*                           |   | 2002                  Share Incentive Plan (2004 Update). (5)                                                                                                                                                                                           |
| 10.4*                           |   | 2002                  Share Incentive Plan (UK Sub-Plan) (included in Exhibit 10.3).(5)                                                                                                                                                                 |
| 10.5*                           |   | 2006                  Share Incentive Plan. (28)                                                                                                                                                                                                        |
| 10.6                  *         |   | Amended                  and Restated Annual Incentive Plan. (25)                                                                                                                                                                                       |
| 10.7*                           |   | Form                  of AIP Restricted Share Unit Award Agreement (33)                                                                                                                                                                                 |
| 10.8*                           |   | Section                  162(m) Performance Incentive Plan. (5)                                                                                                                                                                                         |
| 10.9*                           |   | Executive                  Retirement Savings Plan. (5)                                                                                                                                                                                                 |
| 10.10*                          |   | Executive                  Bonus Deferral Plan. (5)                                                                                                                                                                                                     |
| 10.11*                          |   | Executive                  Incentive Plan (for awards for 2005 – 2009 performance cycle). (5)                                                                                                                                                     |
| 10.12*                          |   | First                  Amendment to the Executive Incentive Plan (for awards for 2005– 2009                  performance cycle). (7)                                                                                                              |
| 10.13*                          |   | Amended                  and Restated Executive Incentive Plan. (31)                                                                                                                                                                                    |
| 10.14*                          |   | Form                  of EIP Share Unit Award Agreement (for awards for 2006 – 2008 and                  2007-2009 performance cycles). (22)                                                                                                      |
| 10.15*                          |   | Form                  of EIP Share Unit Award Agreement (34)                                                                                                                                                                                            |
| 10.16*                          |   | Capital                  Accumulation Plan. (2)                                                                                                                                                                                                         |
| 10.17*                          |   | Form                  of Nonqualified Share Option Agreement (Employee). (10)                                                                                                                                                                           |
| 10.18*                          |   | Form                  of Nonqualified Share Option Agreement (New Nonemployee Director).(10)                                                                                                                                                            |
| 10.19*                          |   | Form                  of Nonqualified Share Option Agreement (Annual Nonemployee Director).                  (10)                                                                                                                                       |
| 10.20*                          |   | Form                  of Time-Based Share Unit Award Agreement. (10)                                                                                                                                                                                    |
| 10.21*                          |   | Form                  of Special Share Unit Award Agreement. (10)                                                                                                                                                                                       |

| 10.22* |   | Form                      of Restricted Share Award Agreement. (10) |
|--------|--------|---------------------------------------------------------------------|

----

| 10.23* |   | Change                    in Control Severance Plan. (31)                                                                                                                                                                    |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.24* |   | Retention                    Bonus Plan.                                                                                                                                                                                     |
| 10.25* |   | Employment                    Agreement dated November 1, 2005 between Platinum Holdings and                    Michael E. Lombardozzi. (20)                                                                            |
| 10.26* |   | Amended                    Letter Agreement dated October 27, 2005 between Platinum Holdings                    and                    Steven H. Newman. (18)                                                                |
| 10.27* |   | Amended                    Consulting Agreement dated October 27, 2005 between Platinum                    US, Steven H.                    Newman and SHN Enterprises, Inc. (18)                                            |
| 10.28* |   | Employment                    Agreement dated August 4, 2004 between Michael D. Price and Platinum                    Holdings. (6)                                                                                          |
| 10.29* |   | Amendment                    dated February 21, 2007 to the Employment Agreement dated August 4,                    2004 between Michael D. Price and Platinum Holdings. (25)                                           |
| 10.30* |   | Employment                    Agreement dated June 24, 2004 between Joseph F. Fisher and Platinum                    Holdings. (6)                                                                                           |
| 10.31* |   | Separation                    Agreement dated June 1, 2007 between Joseph F. Fisher and Platinum                    Holdings. (31)                                                                                           |
| 10.32* |   | Employment                    Agreement dated February 26, 2006 between Platinum Bermuda and Robert                    S. Porter. (22)                                                                                  |
| 10.33* |   | Letter                    Agreement dated July 25, 2006 between H. Elizabeth Mitchell and                    Platinum                    US. (23)                                                                            |
| 10.34  |   | Employment                    Agreement dated June 1, 2007 between Platinum Holdings and James                    A.                    Krantz. (31)                                                                         |
| 10.35  |   | Capital                    Support Agreement dated November 26, 2002 between Platinum Holdings                    and Platinum US. (2)                                                                                  |
| 10.36  |   | Amended                    and Restated Option Agreement dated January 10, 2005 among St.                    Paul                    Reinsurance Company Limited, Platinum Holdings and St. Paul.(9)                         |
| 10.37  |   | Amended                    and Restated Option Agreement dated January 10, 2005 between                    St. Paul and                    Platinum Holdings. (9)                                                            |
| 10.38  |   | Investment  Management                    Agreement dated May 12, 2005 between Platinum US and Hyperion Capital                    Management, Inc. (12)                                                      |
| 10.39  |   | Investment  Management                    Agreement dated May 12, 2005 between Platinum Bermuda and Hyperion                    Capital Management, Inc. (12)                                                 |
| 10.40  |   | Investment                    Management Agreement dated May 12, 2005 between Platinum Holdings,                    Platinum Bermuda, Platinum Regency and BlackRock Financial Management,                    Inc. (12) |
| 10.41  |   | Investment                    Management Agreement dated May 12, 2005 between Platinum UK and                    BlackRock Financial Management, Inc. (12)                                                              |
| 10.42  |   | Investment                    Management Agreement dated May 12, 2005 between Platinum US, Platinum                    Finance and BlackRock Financial Management, Inc. (12)                                            |
| 10.43  |   | Investment                    Agreement dated September 20, 2002 among Platinum Holdings, St.                    Paul, and                    RenaissanceRe. (2)                                                             |
| 10.44  |   | First                    Amendment dated November 1, 2002 to the Investment Agreement dated                    September 20, 2002 among Platinum Holdings, St. Paul, and RenaissanceRe.                    (2)          |
| 10.45  |   | Amended                    and Restated Option Agreement dated November 18, 2004 between                    Platinum Holdings and RenaissanceRe. (8)                                                                    |
| 10.46  |   | Services                    and Capacity Reservation Agreement dated November 1, 2002 between                    Platinum Holdings and RenaissanceRe. (2)                                                               |
| 10.47  |   | Quota                    Share Retrocession Agreement dated November 26, 2002 between Platinum                    Bermuda and Platinum UK. (2)                                                                          |
| 10.48  |   | Quota                    Share Retrocession Agreement dated March 27, 2003 between Platinum                    Bermuda                    and Platinum UK. (5)                                                               |
| 10.49  |   | Addendum                    No. 1 effective April 1, 2003 to the Quota Share Retrocession                    Agreement                    dated March 27, 2003 between Platinum Bermuda and Platinum UK.(5)                  |
| 10.50  |   | Addendum                    No. 2 effective March 27, 2003 to the Quota Share Retrocession                    Agreement                    dated March 27, 2003 between Platinum Bermuda and Platinum UK.(5)                 |
| 10.51  |   | Addendum                    No. 3 effective April 1, 2005 to the Quota Share Reinsurance                    Agreement                    dated March 27, 2003 between Platinum Bermuda and Platinum UK.(11)                  |
| 10.52  |   | Security                    Agreement dated November 26, 2002 between Platinum Bermuda and                    Platinum UK. (2)                                                                                          |
| 10.53  |   | Addendum                    No. 1 effective January 1, 2004 to the Security Agreement dated                    November 26, 2002 between Platinum Bermuda and Platinum UK. (5)                                          |
| 10.54  |   | Control                    Agreement dated November 26, 2002 among Platinum Bermuda, Platinum UK                    and State Street Bank. (2)                                                                          |
| 10.55  |   | Discretionary                    Investment Advisory Agreement dated November 26, 2002 between                    Platinum Bermuda and Platinum UK. (2)                                                                 |
| 10.56  |   | Trust                    Agreement effective January 1, 2003 among Platinum Bermuda, Platinum                    US                    and State Street Bank. (3)                                                            |
| 10.57  |   | Amendment                    No. 1 effective October 3, 2007 to Trust Agreement effective                    January 1,                    2003 among Platinum Bermuda, Platinum US and State Street Bank.(32)               |
| 10.58  |   | Quota                    Share Retrocession Agreement dated May 13, 2003 between Platinum                    Bermuda and Platinum US. (3)                                                                               |
| 10.59  |   | Addendum                    No. 1 dated December 31, 2003 to the Quota Share Retrocession                    Agreement dated May 13, 2003 between Platinum Bermuda and Platinum                    US. (4)         |
| 10.60  |   | Addendum                    No. 2 effective as of April 1, 2005 to the Quota Share Retrocession                    Agreement between Platinum Bermuda and Platinum US. (13)                                                  |
| 10.61  |   | Quota                    Share Retrocession Agreement dated May 6, 2004 between Platinum                    Bermuda and Platinum US. (6)                                                                                |

----

| 10.62 |   | Amended                    and Restated Quota Share Retrocession Agreement dated January                    1, 2006                    between Platinum Bermuda and Platinum US. (26)                                                                                                                                                                                                                                                                                                                                                                 |
|-------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.63 |   | Excess                    of Loss Retrocession Agreement by and between Platinum Bermuda                    and                    Platinum US dated as of April 1, 2006. (27)                                                                                                                                                                                                                                                                                                                                                                        |
| 10.64 |   | 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)                                                                                                                                                                                                                                                                             |
| 10.65 |   | Quota                    Share Retrocession Agreement by and between Platinum Underwriters                    Bermuda,                    Ltd. and Platinum Re (UK) Limited dated as of January 1, 2006.(27)                                                                                                                                                                                                                                                                                                                                          |
| 10.66 |   | Excess                    of Loss Retrocession Agreement effective as of April 1, 2005                    between                    Platinum US and Platinum UK. (13)                                                                                                                                                                                                                                                                                                                                                                                |
| 10.67 |   | 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)                                                                                                                                                                                                                                                                                                        |
| 10.68 |   | Casualty                    and Specialty Quota Share Retrocession Agreement between Platinum                    Bermuda                    and Platinum US dated as of January 1, 2007. (29)                                                                                                                                                                                                                                                                                                                                                         |
| 10.69 |   | 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) |
| 10.70 |   | List                    of Contents of exhibits and Schedules to the Amended and Restated                    Credit                    Agreement. (24)                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.71 |   | First                    Amendment and Waiver dated as of April 24, 2007 to Amended and                    Restated                    Credit Agreement dated as of September 13, 2006. (30)                                                                                                                                                                                                                                                                                                                                                          |
| 10.72 |   | Second                    Amendment dated as of December 3, 2007 to Amended and Restated Credit                    Agreement dated as of September 13, 2006. (33)                                                                                                                                                                                                                                                                                                                                                                                |
| 10.73 |   | Referral                    Agreement between Platinum Bermuda and Renaissance Underwriting                    Managers                    Ltd. (3)                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.74 |   | Referral                    Agreement between Platinum US and Renaissance Underwriting Managers                    Ltd.                    (4)                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.75 |   | Guaranty                    dated December 31, 2003 between Platinum Holdings and Platinum US.                    (4)                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.76 |   | Amendment                    No. 1 dated January 1, 2005 to Guaranty dated December 31, 2003                    between Platinum Holdings and Platinum US. (16)                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.77 |   | Guarantee                    dated December 31, 2003 between Platinum Holdings and Platinum UK.                    (4)                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.78 |   | Purchase                    Agreement dated May 20, 2005 among Platinum Holdings, Platinum                    Finance and Goldman, Sachs & Co. (14)                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.79 |   | Remarketing                    Agreement dated August 8, 2005 among Platinum Holdings, Platinum                    Finance,                    Goldman, Sachs & Co. and Merrill Lynch. (16)                                                                                                                                                                                                                                                                                                                                                       |
| 10.80 |   | Pledge                    Agreement dated November 1, 2002 among Platinum Holdings, State                    Street Bank and Trust Company and JP Morgan Chase. (2)                                                                                                                                                                                                                                                                                                                                                                              |
| 10.81 |   | Excess                    of Loss Retrocession Agreement by and between Platinum Bermuda                    and                    Platinum US dated January 1, 2008.                                                                                                                                                                                                                                                                                                                                                                                 |
| 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 of 2002.                                                                                                                                                                                                                                                              |

|   | (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 8, 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. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

SIGNATURES

| Date:  | February 20,                  2008 | 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 20,                  2008 |
|  /s/                  James A.                  KrantzJames                  A. Krantz       |   | Executive                  Vice President and Chief                  Financial Officer(Principal                  Financial and Principal                  Accounting Officer)  |   | February 20,                  2008 |
|  /s/                  Steven H.                  NewmanSteven                  H. Newman     |   | Chairman                  of the Board of Directors                                                                                                                        |   | February 20,                  2008 |
|  /s/                  H. Furlong                  BaldwinH.                  Furlong Baldwin |   | Director                                                                                                                                                                   |   | February 20,                  2008 |
|  /s/                  Jonathan F. BankJonathan                  F. Bank                      |   | Director                                                                                                                                                                   |   | February 20,                  2008 |
|  /s/                  Dan R.                  CarmichaelDan                  R. Carmichael   |   | Director                                                                                                                                                                   |   | February 20,                  2008 |
|  /s/                  Robert V.                  DeutschRobert                  V. Deutsch   |   | Director                                                                                                                                                                   |   | February 20,                  2008 |
|  /s/                  A. John                  HassA.                  John Hass             |   | Director                                                                                                                                                                   |   | February 20,                  2008 |
|  /s/                  Edmund R. MegnaEdmund                  R. Megna                        |   | Director                                                                                                                                                                   |   | February 20,                  2008 |
|  /s/                  Peter T.                  PruittPeter                  T. Pruitt       |   | Director                                                                                                                                                                   |   | February 20,                  2008 |

----

|                                                                                                                                                                               | Page   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Report                  of Independent Registered Public Accounting Firm                                                                                                           | F-2    |
|                                                                                                                                                                               |   |
| Consolidated                  Balance Sheets as of December 31, 2007 and 2006                                                                                                 | F-3    |
| Consolidated                  Statements of Operations and Comprehensive Income (Loss) for the                  years                  ended December 31, 2007, 2006 and 2005 | F-4    |
| Consolidated                  Statements of Shareholders' Equity for the years ended December 31,                  2007, 2006 and 2005                                        | F-5    |
| Consolidated                  Statements of Cash Flows for the years ended December 31, 2007, 2006                  and 2005                                                  | F-6    |
| Notes                  to Consolidated Financial Statements                                                                                                                        | F-7    |

----

REPORT        OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING        FIRM

----

|                                                                                                                                                                                   |   | 2007   |      | 2006   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|
| ASSETS                                                                                                                                                                                 |   |   |      |   |   |
| Investments:                                                                                                                                                                           |   |   |      |   |   |
| Available-for-sale                  fixed maturities at fair value(amortized                  cost – $3,214,981 and $3,276,970, respectively)                                    |   | $      | 3,191,923 |   | $      | 3,226,354 |   |
| Trading                  securities at fair value(amortized                  cost – $170,952 and $110,845                  respectively)                                         |   |   | 169,818   |   |   | 108,291 |   |
| Preferred                  stocks (cost – $12,246 and $11,246, respectively)                                                                                                     |   |   | 9,607     |   |   | 10,772 |   |
| Other                  invested asset                                                                                                                                                  |   |   | –   |   |   | 4,745 |   |
| Short-term                  investments                                                                                                                                                |   |   | 13,876    |   |   | 27,123 |   |
| Total                  investments                                                                                                                                                     |   |   | 3,385,224 |   |   | 3,377,285 |   |
| Cash                  and cash equivalents                                                                                                                                             |   |   | 1,076,279 |   |   | 851,652 |   |
| Accrued                  investment income                                                                                                                                             |   |   | 34,696    |   |   | 32,682 |   |
| Reinsurance                  premiums receivable                                                                                                                                       |   |   | 244,360   |   |   | 377,183 |   |
| Reinsurance                  recoverable on ceded losses and loss adjustment expenses                                                                                                  |   |   | 27,979    |   |   | 57,956 |   |
| Prepaid                  reinsurance premiums                                                                                                                                          |   |   | 9,369     |   |   | 9,680 |   |
| Funds                  held by ceding companies                                                                                                                                        |   |   | 165,604   |   |   | 238,499 |   |
| Deferred                  acquisition costs                                                                                                                                            |   |   | 70,508    |   |   | 82,610 |   |
| Income                  tax recoverable                                                                                                                                                |   |   | 2,981     |   |   | 7,515 |   |
| Deferred                  tax assets                                                                                                                                                   |   |   | 43,342    |   |   | 38,577 |   |
| Other                  assets                                                                                                                                                          |   |   | 18,408    |   |   | 19,928 |   |
| Total                  assets                                                                                                                                                          |   | $      | 5,078,750 |   | $      | 5,093,567 |   |
|                                                                                                                                                                                   |   |   |      |   |   |   |   |
| LIABILITIES                  AND SHAREHOLDERS’ EQUITY                                                                                                                            |   |   |      |   |   |   |   |
| Liabilities                                                                                                                                                                            |   |   |      |   |   |   |   |
| Unpaid                  losses and loss adjustment expenses                                                                                                                            |   | $      | 2,361,038 |   | $      | 2,368,482 |   |
| Unearned                  premiums                                                                                                                                                     |   |   | 298,498   |   |   | 349,792 |   |
| Debt                  obligations                                                                                                                                                      |   |   | 250,000   |   |   | 292,840 |   |
| Ceded                  premiums payable                                                                                                                                                |   |   | 4,559     |   |   | 17,597 |   |
| Commissions                  payable                                                                                                                                                   |   |   | 100,204   |   |   | 140,835 |   |
| Deferred                  tax liabilities                                                                                                                                              |   |   | –   |   |   | 4,234 |   |
| Other                  liabilities                                                                                                                                                     |   |   | 66,074    |   |   | 61,726 |   |
| Total                  liabilities                                                                                                                                                     |   |   | 3,080,373 |   |   | 3,235,506 |   |
|                                                                                                                                                                                   |   |   |      |   |   |   |   |
| Shareholders’                  Equity                                                                                                                                            |   |   |      |   |   |   |   |
| Preferred                  shares, $.01 par value, 25,000,000 shares authorized, 5,750,000                  shares                  issued and outstanding                             |   |   | 57        |   |   | 57 |   |
| Common                  shares, $.01 par value, 200,000,000 shares authorized, 53,779,914                  and                  59,671,959 shares issued and outstanding, respectively |   |   | 538       |   |   | 597 |   |
| Additional                  paid-in capital                                                                                                                                            |   |   | 1,338,466 |   |   | 1,545,979 |   |
| Accumulated                  other comprehensive loss                                                                                                                                  |   |   | (24,339   | )      |   | (44,289 | ) |
| Retained                  earnings                                                                                                                                                     |   |   | 683,655   |   |   | 355,717 |   |
| Total                  shareholders' equity                                                                                                                                            |   |   | 1,998,377 |   |   | 1,858,061 |   |
| Total                  liabilities and shareholders' equity                                                                                                                            |   | $      | 5,078,750 |   | $      | 5,093,567 |   |

----

|                                                                                                                              |   | 2007   |      | 2006   |   | 2005      |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|-----------|--------|
| Revenue:                                                                                                                          |   |   |      |   |   |      |   |
| Net                  premiums earned                                                                                              |   | $      | 1,173,088 |   |   | 1,336,701 |   | $ | 1,714,723 |   |
| Net                  investment income                                                                                            |   |   | 214,222   |   |   | 187,987   |   |   | 129,445 |   |
| Net                  realized gains (losses) on investments                                                                       |   |   | (2,615    | )      |   | 1,090     |   |   | (3,046 | ) |
| Other                  expense                                                                                                    |   |   | (5,787    | )      |   | (2,872    | )      |   | (586 | ) |
| Total                  revenue                                                                                                    |   |   | 1,378,908 |   |   | 1,522,906 |   |   | 1,840,536 |   |
|                                                                                                                              |   |   |      |   |   |      |   |   |   |   |
| Expenses:                                                                                                                         |   |   |      |   |   |      |   |   |   |   |
| Net                  losses and loss adjustment expenses                                                                          |   |   | 655,487   |   |   | 760,602   |   |   | 1,505,425 |   |
| Net                  acquisition expenses                                                                                         |   |   | 220,330   |   |   | 285,923   |   |   | 403,135 |   |
| Operating                  expenses                                                                                               |   |   | 103,593   |   |   | 95,490    |   |   | 69,827 |   |
| Net                  foreign currency exchange losses (gains)                                                                     |   |   | (2,775    | )      |   | (738      | )      |   | 2,111 |   |
| Interest                  expense                                                                                                 |   |   | 21,470    |   |   | 21,805    |   |   | 20,006 |   |
| Loss                  on repurchase of debt                                                                                       |   |   | –   |   |   | –   |   |   | 2,486 |   |
| Total                  expenses                                                                                                   |   |   | 998,105   |   |   | 1,163,082 |   |   | 2,002,990 |   |
|                                                                                                                              |   |   |      |   |   |      |   |   |   |   |
| Income                  (loss) before income tax expense (benefit)                                                                |   |   | 380,803   |   |   | 359,824   |   |   | (162,454 | ) |
| Income                  tax expense (benefit)                                                                                     |   |   | 23,825    |   |   | 30,167    |   |   | (24,967 | ) |
| Net                  income (loss)                                                                                                |   |   | 356,978   |   |   | 329,657   |   |   | (137,487 | ) |
| Preferred                  dividends                                                                                              |   |   | 10,408    |   |   | 10,382    |   |   | 737 |   |
| Net                  income (loss) attributable to common shareholders                                                            |   | $      | 346,570   |   |   | 319,275   |   | $ | (138,224 | ) |
|                                                                                                                              |   |   |      |   |   |      |   |   |   |   |
| Earnings                  (loss) per common share:                                                                                |   |   |      |   |   |      |   |   |   |   |
| Basic                  earnings (loss) per common share                                                                           |   | $      | 5.91      |   |   | 5.38      |   | $ | (3.01 | ) |
| Diluted                  earnings (loss) per common share                                                                         |   | $      | 5.38      |   |   | 4.96      |   | $ | (3.01 | ) |
|                                                                                                                              |   |   |      |   |   |      |   |   |   |   |
| Comprehensive                  income (loss):                                                                                     |   |   |      |   |   |      |   |   |   |   |
| Net                  income (loss)                                                                                                |   | $      | 356,978   |   |   | 329,657   |   | $ | (137,487 | ) |
| Other                  comprehensive income (loss):                                                                               |   |   |      |   |   |      |   |   |   |   |
| Net                  change in unrealized gains and losses on available-for-sale securities,                  net of deferred tax |   |   | 20,763    |   |   | (3,887    | )      |   | (52,454 | ) |
| Cumulative                  translation adjustments, net of deferred tax                                                          |   |   | (813      | )      |   | 316       |   |   | (516 | ) |
| Comprehensive                  income (loss)                                                                                      |   | $      | 376,928   |   |   | 326,086   |   | $ | (190,457 | ) |
|                                                                                                                              |   |   |      |   |   |      |   |   |   |   |
| Shareholder                  dividends:                                                                                           |   |   |      |   |   |      |   |   |   |   |
| Preferred                  dividends declared                                                                                     |   |   | 10,408    |   |   | 9,818     |   |   | – |   |
| Preferred                  dividends declared per share                                                                           |   |   | 1.81      |   |   | 1.71      |   |   | – |   |
| Common                  shareholder dividends declared                                                                            |   | $      | 18,632    |   |   | 19,029    |   | $ | 14,775 |   |
| Dividends                  declared per common share                                                                              |   | $      | 0.32      |   |   | 0.32      |   | $ | 0.32 |   |

----

|                                                                                                                              |   | 2007   |      |   | 2006   |   |      | 2005   |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
| Preferred                  shares:                                                                                                |   |   |      |   |   |   |      |   |   |
| Balances                  at beginning of year                                                                                    |   | $      | 57        |   |   |   | 57        |   |   | $ | – |   |
| Issuance                  of preferred shares                                                                                     |   |   | –   |   |   |   | –   |   |   |   | 57 |   |
| Balances                  at end of year                                                                                          |   |   | 57        |   |   |   | 57        |   |   |   | 57 |   |
|                                                                                                                              |   |   |      |   |   |   |      |   |   |   |   |   |
| Common                  shares:                                                                                                   |   |   |      |   |   |   |      |   |   |   |   |   |
| Balances                  at beginning of year                                                                                    |   |   | 597       |   |   |   | 590       |   |   |   | 430 |   |
| Exercise                  of share options                                                                                        |   |   | 9         |   |   |   | 6         |   |   |   | 7 |   |
| Issuance                  of restricted shares and shares for share units                                                         |   |   | 1         |   |   |   | –   |   |   |   | 1 |   |
| Issuance                  of common shares                                                                                        |   |   | –   |   |   |   | 1         |   |   |   | 152 |   |
| Purchase                  of common shares                                                                                        |   |   | (69       | )      |   |   | –   |   |   |   | – |   |
| Balances                  at end of year                                                                                          |   |   | 538       |   |   |   | 597       |   |   |   | 590 |   |
|                                                                                                                              |   |   |      |   |   |   |      |   |   |   |   |   |
| Additional                  paid-in-capital:                                                                                      |   |   |      |   |   |   |      |   |   |   |   |   |
| Balances                  at beginning of year                                                                                    |   |   | 1,545,979 |   |   |   | 1,527,316 |   |   |   | 911,851 |   |
| Transfer                  of unearned common share grant compensation                                                             |   |   | –   |   |   |   | (2,467    | )      |   |   | – |   |
| Exercise                  of share options                                                                                        |   |   | 23,426    |   |   |   | 12,969    |   |   |   | 15,020 |   |
| Issuance                  of restricted shares and shares for share units                                                         |   |   | –   |   |   |   | –   |   |   |   | 3,274 |   |
| Share                  based compensation                                                                                         |   |   | 8,813     |   |   |   | 7,995     |   |   |   | 3,516 |   |
| Issuance                  of common shares                                                                                        |   |   | –   |   |   |   | –   |   |   |   | 425,604 |   |
| Issuance                  of preferred shares                                                                                     |   |   | –   |   |   |   | –   |   |   |   | 167,451 |   |
| Purchase                  of common shares                                                                                        |   |   | (240,603  | )      |   |   | –   |   |   |   | – |   |
| Tax                  benefit of share options                                                                                     |   |   | 851       |   |   |   | 166       |   |   |   | 600 |   |
| Balances                  at end of year                                                                                          |   |   | 1,338,466 |   |   |   | 1,545,979 |   |   |   | 1,527,316 |   |
|                                                                                                                              |   |   |      |   |   |   |      |   |   |   |   |   |
| Unearned                  share grant                  compensation:                                                              |   |   |      |   |   |   |      |   |   |   |   |   |
| Balances                  at beginning of year                                                                                    |   |   | –   |   |   |   | (2,467    | )      |   |   | – |   |
| Transfer                  of unearned common share grant compensation                                                             |   |   | –   |   |   |   | 2,467     |   |   |   | – |   |
| Shares                  issued                                                                                                    |   |   | –   |   |   |   | –   |   |   |   | (3,275 | ) |
| Amortization                                                                                                                      |   |   | –   |   |   |   | –   |   |   |   | 808 |   |
| Balances                  at end of year                                                                                          |   |   | –   |   |   |   | –   |   |   |   | (2,467 | ) |
|                                                                                                                              |   |   |      |   |   |   |      |   |   |   |   |   |
| Accumulated                  other                  comprehensive income (loss):                                                  |   |   |      |   |   |   |      |   |   |   |   |   |
| Balances                  at beginning of year                                                                                    |   |   | (44,289   | )      |   |   | (40,718   | )      |   |   | 12,252 |   |
| Net                  change in unrealized gains and losses on available-for-sale securities,                  net of deferred tax |   |   | 20,763    |   |   |   | (3,887    | )      |   |   | (52,454 | ) |
| Net                  change in cumulative translation adjustments, net of deferred                  tax                           |   |   | (813      | )      |   |   | 316       |   |   |   | (516 | ) |
| Balances                  at end of year                                                                                          |   |   | (24,339   | )      |   |   | (44,289   | )      |   |   | (40,718 | ) |
|                                                                                                                              |   |   |      |   |   |   |      |   |   |   |   |   |
| Retained                  earnings:                                                                                               |   |   |      |   |   |   |      |   |   |   |   |   |
| Balances                  at beginning of year                                                                                    |   |   | 355,717   |   |   |   | 55,471    |   |   |   | 208,470 |   |
| Net                  income (loss)                                                                                                |   |   | 356,978   |   |   |   | 329,657   |   |   |   | (137,487 | ) |
| Preferred                  share dividends                                                                                        |   |   | (10,408   | )      |   |   | (10,382   | )      |   |   | (737 | ) |
| Common                  share dividends                                                                                           |   |   | (18,632   | )      |   |   | (19,029   | )      |   |   | (14,775 | ) |
| Balances                  at end of year                                                                                          |   |   | 683,655   |   |   |   | 355,717   |   |   |   | 55,471 |   |
|                                                                                                                              |   |   |      |   |   |   |      |   |   |   |   |   |
| Total                  shareholders’ equity                                                                                 |   | $      | 1,998,377 |   |   |   | 1,858,061 |   |   | $ | 1,540,249 |   |

----

|                                                                                |   | 2007   |       |   | 2006   |   |       | 2005   |   |
|-------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
| Operating                  Activities:                                              |   |   |       |   |   |   |       |   |   |
| Net                  income (loss)                                                  |   | $      | 356,978    |   |   |   | 329,657    |   |   | $ | (137,487 | ) |
| Adjustments                  to reconcile net income to cash used in operations:    |   |   |       |   |   |   |       |   |   |   |   |   |
| Depreciation                  and amortization                                      |   |   | 12,182     |   |   |   | 16,213     |   |   |   | 14,993 |   |
| Net                  realized (gains) losses on investments                         |   |   | 2,615      |   |   |   | (1,090     | )      |   |   | 3,046 |   |
| Loss                  on repurchase of debt                                         |   |   | –    |   |   |   | –    |   |   |   | 2,486 |   |
| Net                  foreign currency exchange (gains) losses                       |   |   | (2,775     | )      |   |   | (738       | )      |   |   | 2,111 |   |
| Share                  based compensation                                           |   |   | 9,129      |   |   |   | 7,995      |   |   |   | 4,424 |   |
| Deferred                  income tax expense (benefit)                              |   |   | (13,283    | )      |   |   | (2,613     | )      |   |   | (24,590 | ) |
| Trading                  securities activities, net                                 |   |   | (47,921    | )      |   |   | 1,776      |   |   |   | (21,235 | ) |
| Changes                  in assets and liabilities:                                 |   |   |       |   |   |   |       |   |   |   |   |   |
| Increase                  in accrued investment income                              |   |   | (2,014     | )      |   |   | (3,452     | )      |   |   | (5,567 | ) |
| Decrease                  in reinsurance premiums receivable                        |   |   | 136,395    |   |   |   | 195,094    |   |   |   | 12,599 |   |
| (Increase)                  decrease in funds held by ceding companies              |   |   | 72,895     |   |   |   | 53,130     |   |   |   | (93,581 | ) |
| Decrease                  in deferred acquisition costs                             |   |   | 12,102     |   |   |   | 48,190     |   |   |   | 5,238 |   |
| Increase                  in net unpaid losses and loss adjustment expenses         |   |   | 10,048     |   |   |   | 37,188     |   |   |   | 887,563 |   |
| Decrease                  in net unearned premiums                                  |   |   | (50,983    | )      |   |   | (154,007   | )      |   |   | (5,417 | ) |
| Increase                  (decrease) in ceded premiums payable                      |   |   | (13,038    | )      |   |   | (4,947     | )      |   |   | 20,160 |   |
| Increase                  (decrease) in commissions payable                         |   |   | (40,631    | )      |   |   | (45,819    | )      |   |   | 4,729 |   |
| Increase                  (decrease) in funds withheld                              |   |   | –    |   |   |   | –    |   |   |   | (11,999 | ) |
| (Increase)                  decrease in income tax recoverable                      |   |   | 5,476      |   |   |   | 17,174     |   |   |   | (22,595 | ) |
| Changes                  in other assets and liabilities                            |   |   | (4,462     | )      |   |   | 33,457     |   |   |   | (37,739 | ) |
| Other                  net                                                          |   |   | 849        |   |   |   | (407       | )      |   |   | 535 |   |
| Net                  cash provided by operating activities                          |   |   | 443,562    |   |   |   | 526,801    |   |   |   | 597,674 |   |
|                                                                                |   |   |       |   |   |   |       |   |   |   |   |   |
| Investing                  Activities:                                              |   |   |       |   |   |   |       |   |   |   |   |   |
| Proceeds                  from sale of available-for-sale securities                |   |   | 248,341    |   |   |   | 348,142    |   |   |   | 891,799 |   |
| Proceeds                  from maturity or paydown of available-for-sale securities |   |   | 1,453,687  |   |   |   | 270,939    |   |   |   | 97,931 |   |
| Proceeds                  from sale of other invested asset                         |   |   | 4,745      |   |   |   | –    |   |   |   | – |   |
| Acquisition                  of available-for-sale securities                       |   |   | (1,650,626 | )      |   |   | (1,083,282 | )      |   |   | (1,711,505 | ) |
| Net                  change in short-term investments                               |   |   | 14,035     |   |   |   | (15,822    | )      |   |   | (8,793 | ) |
| Net                  cash provided by (used in) investing activities                |   |   | 70,182     |   |   |   | (480,023   | )      |   |   | (730,568 | ) |
|                                                                                |   |   |       |   |   |   |       |   |   |   |   |   |
| Financing                  Activities:                                              |   |   |       |   |   |   |       |   |   |   |   |   |
| Dividends                  paid to preferred shareholders                           |   |   | (10,408    | )      |   |   | (9,818     | )      |   |   | – |   |
| Dividends                  paid to common shareholders                              |   |   | (18,632    | )      |   |   | (19,029    | )      |   |   | (14,775 | ) |
| Proceeds                  from exercise of share options                            |   |   | 23,435     |   |   |   | 12,975     |   |   |   | 15,027 |   |
| Net                  proceeds from issuance of common shares                        |   |   | –    |   |   |   | –    |   |   |   | 425,756 |   |
| Net                  proceeds from issuance of preferred shares                     |   |   | –    |   |   |   | –    |   |   |   | 167,509 |   |
| Net                  proceeds from issuance of debt securities                      |   |   | –    |   |   |   | –    |   |   |   | 246,900 |   |
| Purchase                  of common shares                                          |   |   | (240,672   | )      |   |   | –    |   |   |   | – |   |
| Repayment                  of debt obligations                                      |   |   | (42,840    | )      |   |   | –    |   |   |   | (96,674 | ) |
| Net                  cash provided by (used in) financing activities                |   |   | (289,117   | )      |   |   | (15,872    | )      |   |   | 743,743 |   |
| Net                  increase in cash and cash equivalents                          |   |   | 224,627    |   |   |   | 30,906     |   |   |   | 610,849 |   |
| Cash                  and cash equivalents at beginning of year                     |   |   | 851,652    |   |   |   | 820,746    |   |   |   | 209,897 |   |
| Cash                  and cash equivalents at end of year                           |   | $      | 1,076,279  |   |   |   | 851,652    |   |   | $ | 820,746 |   |
|                                                                                |   |   |       |   |   |   |       |   |   |   |   |   |
| Supplemental                  disclosures of cash flow information:                 |   |   |       |   |   |   |       |   |   |   |   |   |
| Income                  taxes paid                                                  |   | $      | 29,160     |   |   |   | 15,602     |   |   | $ | 33,569 |   |
| Interest                  paid                                                      |   | $      | 21,479     |   |   |   | 21,479     |   |   | $ | 17,662 |   |

----

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

----

----

----

|                                              |   | AsReported |     |   | Pro                  Forma |   |
|---------------------------------------------------|--------|------------|----------|--------|----------------------------|--------|
| Share-based                  compensation expense |   | $          | 3,799    |   |                       | $      | 8,149 |   |
| Net                  loss                         |   |       | (138,224 | )      |                       |   | (142,574 | ) |
| Basic                  loss per share             |   |       | (3.01    | )      |                       |   | (3.11 | ) |
| Diluted                  loss per share           |   |       | (3.01    | )      |                       |   | (3.11 | ) |

----

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

|                                                           |   | Amortized                    Cost |      | GrossUnrealizedGains |   | GrossUnrealizedLosses |   | Fair                    Value |   |
|----------------------------------------------------------------|--------|-----------------------------------|-----------|----------------------|--------|-----------------------|--------|-------------------------------|--------|
| December 31,                    2007:                     |   |                              |      |                 |   |                  |   |                          |   |
| U.S.                    Government                             |   | $                                 | 94,738    |                 |   | 2,083                 |   |                          | 69     |   | $ | 96,752 |   |
| Corporate                    bonds                             |   |                              | 1,408,789 |                 |   | 5,328                 |   |                          | 18,071 |   |   | 1,396,046 |   |
| 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 |   |
| Foreign                    governments and states              |   |                              | 27,939    |                 |   | 19                    |   |                          | 36     |   |   | 27,922 |   |
| Total                    available-for-sale fixed maturities   |   |                              | 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 |   |
|                                                           |   |                              |      |                 |   |                  |   |                          |   |   |   |   |   |
| December 31,                    2006:                     |   |                              |      |                 |   |                  |   |                          |   |   |   |   |   |
| U.S.                    Government                             |   | $                                 | 155,766   |                 |   | 64                    |   |                          | 2,036  |   | $ | 153,794 |   |
| Corporate                    bonds                             |   |                              | 1,529,400 |                 |   | 609                   |   |                          | 24,853 |   |   | 1,505,156 |   |
| Mortgage-backed                    and asset-backed securities |   |                              | 1,349,586 |                 |   | 1,098                 |   |                          | 21,717 |   |   | 1,328,967 |   |
| Municipal                    bonds                             |   |                              | 200,445   |                 |   | 4                     |   |                          | 2,851  |   |   | 197,598 |   |
| Foreign                    governments and states              |   |                              | 41,773    |                 |   | –               |   |                          | 934    |   |   | 40,839 |   |
| Total                    available-for-sale fixed maturities   |   |                              | 3,276,970 |                 |   | 1,775                 |   |                          | 52,391 |   |   | 3,226,354 |   |
| Preferred                    stocks                            |   |                              | 11,246    |                 |   | –               |   |                          | 474    |   |   | 10,772 |   |
| Total                    available-for-sale securities         |   | $                                 | 3,288,216 |                 |   | 1,775                 |   |                          | 52,865 |   | $ | 3,237,126 |   |

----

|                                                         |   | AmortizedCost |      |   | Fair                  Value |   |
|--------------------------------------------------------------|--------|---------------|-----------|--------|-----------------------------|--------|
| Due                  in one year or less                     |   | $             | 331,802   |   |                        | $      | 331,502 |   |
| Due                  from one to five years                  |   |          | 927,318   |   |                        |   | 929,872 |   |
| Due                  from five to ten years                  |   |          | 349,243   |   |                        |   | 346,188 |   |
| Due                  in ten or more years                    |   |          | 205,132   |   |                        |   | 196,119 |   |
| Mortgage-backed                  and asset-backed securities |   |          | 1,401,486 |   |                        |   | 1,388,242 |   |
| Total                                                        |   | $             | 3,214,981 |   |                        | $      | 3,191,923 |   |

|                                       |   | 2007   |    | 2006   |   | 2005    |   |
|--------------------------------------------|--------|--------|---------|--------|--------|---------|--------|
| Fixed                  maturities          |   | $      | 169,745 |   |   | 148,708 |   | $ | 114,234 |   |
| Cash                  and cash equivalents |   |   | 44,480  |   |   | 35,684  |   |   | 11,063 |   |
| Funds                  held                |   |   | 5,279   |   |   | 7,998   |   |   | 8,172 |   |
|                                       |   |   | 219,504 |   |   | 192,390 |   |   | 133,469 |   |
| Less                  investment expenses  |   |   | 5,282   |   |   | 4,403   |   |   | 4,024 |   |
| Net                  investment income     |   | $      | 214,222 |   |   | 187,987 |   | $ | 129,445 |   |

|                                                                     |   | 2007   |                 | 2006   |   | 2005   |   |
|--------------------------------------------------------------------------|--------|--------|----------------------|--------|--------|--------|--------|
| Available-for-sale                  securities and other invested asset: |   |   |                 |   |   |   |   |
| Gross                  realized gains                                    |   | $      | 52                   |   |   | 1,591  |   | $ | 4,333 |   |
| Gross                  realized losses                                   |   |   | 2,128                |   |   | 316    |   |   | 7,503 |   |
| Subtotal                                                                 |   |   | (2,076               | )      |   | 1,275  |   |   | (3,170 | ) |
| Trading                  securities:                                     |   |   |                 |   |   |   |   |   |   |   |
| Gross                  realized gains                                    |   |   | –              |   |   | 1      |   |   | 272 |   |
| Gross                  realized losses                                   |   |   | 539                  |   |   | 186    |   |   | 148 |   |
| Subtotal                                                                 |   |   | (                539 | )      |   | (185   | )      |   | 124 |   |
| Net                  realized gains (losses)                             |   | $      | (2,615               | )      |   | 1,090  |   | $ | (3,046 | ) |

|                                                       |   | 2007   |   |   | 2006   |   |   | 2005 |   |
|------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|------|--------|
| Available                  for sale securities             |   | $      | 25,394 |   |   |   | (3,311 | )    |   | $ | (61,018 | ) |
| Less                  deferred tax                         |   |   | (4,631 | )      |   |   | (576   | )    |   |   | 8,564 |   |
| Net                  change in unrealized gains and losses |   | $      | 20,763 |   |   |   | (3,887 | )    |   | $ | (52,454 | ) |

----

|                                                         | Fair                  Value |      | UnrealizedLoss |   |
|--------------------------------------------------------------|-----------------------------|-----------|----------------|--------|
| Less                  than twelve                  months:   |                        |      |           |   |
| U.S.                  Government                             | $                           | –   |           | $      | – |   |
| Corporate                  bonds                             |                        | 212,643   |           |   | 3,794 |   |
| Mortgage-backed                  and asset-backed securities |                        | 286,805   |           |   | 8,544 |   |
| Municipal                  bonds                             |                        | 2,851     |           |   | 4 |   |
| Foreign                  governments and states              |                        | 5,807     |           |   | 30 |   |
| Preferred                  stocks                            |                        | –   |           |   | – |   |
| Total                                                        | $                           | 508,106   |           | $      | 12,372 |   |
| Twelve                  months or                  more:     |                        |      |           |   |   |   |
| U.S.                  Government                             | $                           | 2,604     |           | $      | 69 |   |
| Corporate                  bonds                             |                        | 462,079   |           |   | 14,278 |   |
| Mortgage-backed                  and asset-backed securities |                        | 476,690   |           |   | 12,394 |   |
| Municipal                  bonds                             |                        | 106,687   |           |   | 750 |   |
| Foreign                  governments and states              |                        | 5,495     |           |   | 5 |   |
| Preferred                  stocks                            |                        | 8,589     |           |   | 2,657 |   |
| Total                                                        | $                           | 1,062,144 |           | $      | 30,153 |   |

| Total                  unrealized                  losses:   |   |      |   |   |   |   |
|--------------------------------------------------------------|--------|-----------|--------|--------|--------|--------|
| U.S.                  Government                             | $      | 2,604     |   | $      | 69     |   |
| Corporate                  bonds                             |   | 674,722   |   |   | 18,072 |   |
| Mortgage-backed                  and asset-backed securities |   | 763,495   |   |   | 20,938 |   |
| Municipal                  bonds                             |   | 109,538   |   |   | 754    |   |
| Foreign                  governments and states              |   | 11,302    |   |   | 35     |   |
| Preferred                  stocks                            |   | 8,589     |   |   | 2,657  |   |
| Total                                                        | $      | 1,570,250 |   | $      | 42,525 |   |

----

|                                    |   | December 31,                  2007 |      | December 31,                  2006 |      |
|-----------------------------------------|--------|-----------------------------------------|-----------|-----------------------------------------|-----------|
|                                    |   | CarryingAmount                          |      |                                    | FairValue |   | CarryingAmount |   |   | FairValue |   |
| Financial                  assets:      |   |                                    |      |                                    |      |   |   |   |   |   |   |
| Fixed                  maturities       |   | $                                       | 3,361,741 |                                    |      |   | 3,361,741 |   |   | 3,334,645 |   |   | $ | 3,334,645 |   |
| Preferred                  stocks       |   |                                    | 9,607     |                                    |      |   | 9,607 |   |   | 10,772 |   |   |   | 10,772 |   |
| Short-term                  investments |   |                                    | 13,876    |                                    |      |   | 13,876 |   |   | 27,123 |   |   |   | 27,123 |   |
| Other                  invested asset   |   |                                    | –   |                                    |      |   | – |   |   | 4,745 |   |   |   | 4,745 |   |
| Financial                  liabilities: |   |                                    |      |                                    |      |   |   |   |   |   |   |   |   |   |   |
| Debt                  obligations       |   | $                                       | 250,000   |                                    |      |   | 253,800 |   |   | 292,840 |   |   | $ | 303,589 |   |

| 3.                  Unpaid                  Losses                  and LAE |
|-----------------------------------------------------------------------------|

|                                                                   |   | 2007   |      |   | 2006   |   |      | 2005   |   |
|------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
| Net                  unpaid losses and LAE as of the beginning of year |   | $      | 2,326,227 |   |   |   | 2,268,655 |   |   | $ | 1,379,227 |   |
| Net                  incurred related to:                              |   |   |      |   |   |   |      |   |   |   |   |   |
| Current                  year                                          |   |   | 745,865   |   |   |   | 811,250   |   |   |   | 1,577,944 |   |
| Prior                  years                                           |   |   | (90,378   | )      |   |   | (50,648   | )      |   |   | (72,519 | ) |
| Total                  incurred net losses and LAE                     |   |   | 655,487   |   |   |   | 760,602   |   |   |   | 1,505,425 |   |
| Net                  paid losses and LAE:                              |   |   |      |   |   |   |      |   |   |   |   |   |
| Current                  year                                          |   |   | 73,402    |   |   |   | 96,112    |   |   |   | 210,306 |   |
| Prior                  year                                            |   |   | 578,611   |   |   |   | 624,477   |   |   |   | 390,598 |   |
| Total                  net paid losses and LAE                         |   |   | 652,013   |   |   |   | 720,589   |   |   |   | 600,904 |   |
|                                                                   |   |   |      |   |   |   |      |   |   |   |   |   |
| Effects                  of foreign currency exchange rate changes     |   |   | 12,484    |   |   |   | 17,559    |   |   |   | (15,093 | ) |
| Net                  unpaid losses and LAE as of the end of year       |   |   | 2,342,185 |   |   |   | 2,326,227 |   |   |   | 2,268,655 |   |
| Reinsurance                  recoverable                               |   |   | 18,853    |   |   |   | 42,255    |   |   |   | 55,335 |   |
| Gross                  unpaid losses and LAE at end of year            |   | $      | 2,361,038 |   |   |   | 2,368,482 |   |   | $ | 2,323,990 |   |

----

| Gross                  losses and LAE                             |   | $      | 654,090 |   |
|-------------------------------------------------------------------|--------|--------|---------|--------|
| Retrocessional                  reinsurance                       |   |   | (73,800 | )      |
| Net                  losses and LAE                               |   |   | 580,290 |   |
| Additional                  net premiums earned                   |   |   | (46,666 | )      |
| Profit                  commissions                               |   |   | (3,654  | )      |
| Net                  adverse impact on income before income taxes |   | $      | 529,970 |   |

| 4.                  Retrocessional                  Reinsurance |
|-----------------------------------------------------------------|

----

|                                                                                   |   | Assumed |      |   | Ceded  |   |   | Net    |   |
|----------------------------------------------------------------------------------------|--------|---------|-----------|--------|--------|--------|--------|--------|--------|
| 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 |   |
|                                                                                   |   |   |      |   |   |   |   |   |   |   |      |   |
| As                  of and for the year                  ended December 31, 2005: |   |   |      |   |   |   |   |   |   |   |      |   |
| Premiums                  written                                                      |   |   | 1,765,155 |   |   |   | 47,433 |   |   |   | 1,717,722 |   |
| Premiums                  earned                                                       |   |   | 1,757,139 |   |   |   | 42,416 |   |   |   | 1,714,723 |   |
| Losses                  and LAE                                                        |   |   | 1,594,737 |   |   |   | 89,312 |   |   |   | 1,505,425 |   |
| Unpaid                  losses and LAE                                                 |   | $      | 2,323,990 |   |   |   | 55,335 |   |   | $      | 2,268,655 |   |

|                                                                             |   | 2007   |    |   | 2006   |   |    | 2005   |   |
|----------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Retroceded                  by Platinum                  US to Platinum Bermuda: |   |   |    |   |   |   |    |   |   |
| Premiums                  earned                                                 |   | $      | 423,218 |   |   |   | 666,331 |   |   | $ | 697,992 |   |
| Incurred                  losses and LAE                                         |   |   | 273,418 |   |   |   | 457,447 |   |   |   | 893,237 |   |
|                                                                             |   |   |    |   |   |   |    |   |   |   |   |   |
| Retroceded                  by Platinum                  UK to Platinum Bermuda: |   |   |    |   |   |   |    |   |   |   |   |   |
| Premiums                  earned                                                 |   |   | – |   |   |   | 79,173  |   |   |   | 86,163 |   |
| Incurred                  losses and LAE                                         |   |   | – |   |   |   | 28,113  |   |   |   | 54,657 |   |
|                                                                             |   |   |    |   |   |   |    |   |   |   |   |   |
| Retroceded                  by Platinum                  Bermuda to Platinum UK: |   |   |    |   |   |   |    |   |   |   |   |   |
| Premiums                  earned                                                 |   |   | – |   |   |   | 4,583   |   |   |   | 8,250 |   |
| Incurred                  losses and LAE                                         |   |   | (595    | )      |   |   | 19,678  |   |   |   | 55,000 |   |

----

|                                                                             |   |   | 2007  |   |   |   | 2006  |   |   |   | 2005  |   |
|----------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|--------|------------|--------|
| Retroceded                  by Platinum                  UK to Platinum US:      |   |   |       |   |   |   |       |   |   |   |       |   |
| Premiums                  earned                                                 |   |   | –    |   |   |   | 250        |   |   |   | 1,800      |   |
| Incurred                  losses and LAE                                         |   |   | –    |   |   |   | –    |   |   |   | –    |   |
|                                                                             |   |   |       |   |   |   |       |   |   |   |       |   |
| Retroceded                  by Platinum                  Bermuda to Platinum US: |   |   |       |   |   |   |       |   |   |   |       |   |
| Premiums                  earned                                                 |   |   | 1,623      |   |   |   | 977        |   |   |   | –    |   |
| Incurred                  losses and LAE                                         |   | $      | –    |   |   |   | –    |   |   | $      | –    |   |

| 5.                  Debt,                  Equity                  Security Units and Credit                  Facility |
|------------------------------------------------------------------------------------------------------------------------|

----

|                                                                           |   | 2007   |    |   | 2006   |   |
|--------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Series                  B Notes, 7.5%, due June 1, 2017                        |   | $      | 250,000 |   |   | $      | 250,000 |   |
| Series                  B Remarketed Notes, 6.371%, due November 16, 2007 |   |   | – |   |   |   | 42,840 |   |
| Total                  debt obligations                                        |   | $      | 250,000 |   |   | $      | 292,840 |   |

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

----

|                                                        |   | 2007   |    |   | 2006   |   |    | 2005   |   |
|-------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| United                  States                              |   | $      | 63,710  |   |   |   | 75,374  |   |   | $ | (66,181 | ) |
| Bermuda                                                     |   |   | 303,129 |   |   |   | 263,327 |   |   |   | (73,165 | ) |
| Other                                                       |   |   | 13,964  |   |   |   | 21,123  |   |   |   | (23,108 | ) |
| Income                  before income tax expense (benefit) |   | $      | 380,803 |   |   |   | 359,824 |   |   | $ | (162,454 | ) |

|                                           |   | 2007   |    |   | 2006   |   |   | 2005   |   |
|------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|
| Current                  tax expense (benefit) |   | $      | 37,037  |   |   |   | 32,780 |   |   | $ | (377 | ) |
| Deferred                  tax benefit          |   |   | (13,212 | )      |   |   | (2,613 | )      |   |   | (24,590 | ) |
| Total                                          |   | $      | 23,825  |   |   |   | 30,167 |   |   | $ | (24,967 | ) |

|                                                                                                  |   | 2007   |     |   | 2006   |   |    | 2005   |   |
|-------------------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|---------|--------|--------|
| Expected                  income tax expense (benefit) at 35%                                         |   | $      | 133,281  |   |   |   | 125,938 |   |   | $ | (56,859 | ) |
| Effect                  of income or loss subject to tax at rates other than 35%                      |   |   | (112,768 | )      |   |   | (93,347 | )      |   |   | 26,474 |   |
| Tax                  exempt investment income                                                         |   |   | (1,460   | )      |   |   | (2,062  | )      |   |   | (2,932 | ) |
| U.S.                  withholding taxes deemed taxable transfer to foreign                  affiliate |   |   | 175      |   |   |   | (450    | )      |   |   | 6,500 |   |
| Other,                  net                                                                           |   |   | 4,597    |   |   |   | 88      |   |   |   | 1,850 |   |
| Income                  tax expense (benefit)                                                         |   | $      | 23,825   |   |   |   | 30,167  |   |   | $ | (24,967 | ) |

|                                                             |   | 2007   |    |   | 2006   |   |
|------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Deferred                  tax                  assets:           |   |   |    |   |   |   |
| Unpaid                  losses and LAE                           |   | $      | 41,312  |   |   | $      | 34,433 |   |
| Timing                  differences in recognition of expenses   |   |   | 1,780   |   |   |   | 1,448 |   |
| Unearned                  premiums                               |   |   | 8,727   |   |   |   | 7,499 |   |
| Net                  unrealized losses on investments            |   |   | 1,353   |   |   |   | 5,985 |   |
| Other                  deferred tax assets                       |   |   | – |   |   |   | 6,586 |   |
| Total                  deferred tax assets                       |   | $      | 53,172  |   |   | $      | 55,951 |   |
| Deferred                  tax                  liabilities:      |   |   |    |   |   |   |   |   |
| Deferred                  acquisition costs                      |   |   | 9,188   |   |   |   | 11,051 |   |
| Other                  deferred tax liabilities                  |   |   | 642     |   |   |   | – |   |
| Unrealized                  net foreign currency exchange losses |   |   | – |   |   |   | 10,557 |   |
| Total                  deferred tax liabilities                  |   |   | 9,830   |   |   |   | 21,608 |   |
| Total                  net deferred tax assets (liabilities)     |   | $      | 43,342  |   |   | $      | 34,343 |   |

----

|                                                         |   | 2007   |    |   | 2006   |   |
|--------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Platinum                  US deferred tax assets             |   | $      | 53,172  |   |   | $      | 49,627 |   |
| Platinum                  US deferred tax liabilities        |   |   | 9,830   |   |   |   | 11,051 |   |
| Net                  Platinum US deferred tax assets         |   |   | 43,342  |   |   |   | 38,576 |   |
| Platinum                  UK deferred tax assets             |   |   | – |   |   |   | 6,585 |   |
| Platinum                  UK deferred tax liabilities        |   |   | – |   |   |   | 10,818 |   |
| Net                  Platinum UK deferred tax liabilities    |   |   | – |   |   |   | 4,233 |   |
| Total                  net deferred tax assets (liabilities) |   | $      | 43,342  |   |   | $      | 34,343 |   |

| 7.                  Shareholders'                  Equity and Regulation |
|--------------------------------------------------------------------------|

----

|                                                                                                                               |   | 2007   |                 |   | 2006   |   |   | 2005   |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------------------|--------|--------|--------|--------|--------|--------|
| Before                  tax                  amounts:                                                                              |   |   |                 |   |   |   |   |   |   |
| Foreign                  currency translation adjustment                                                                           |   | $      | (1,161               | )      |   |   | 452    |   |   | $ | (737 | ) |
| Net                  change in unrealized holding gains and losses arising during the                  period                      |   |   | 23,319               |   |   |   | (1,786 | )      |   |   | (62,441 | ) |
| Less:                  reclassification adjustment for net gains (losses) realized in                  net                  income |   |   | (2,076               | )      |   |   | 1,522  |   |   |   | (1,423 | ) |
| Other                  comprehensive income (loss) before tax                                                                      |   |   | 24,234               |   |   |   | (2,856 | )      |   |   | (61,755 | ) |
|                                                                                                                               |   |   |                 |   |   |   |   |   |   |   |   |   |
| Deferred                  income tax                  (expense) benefit on:                                                        |   |   |                 |   |   |   |   |   |   |   |   |   |
| Foreign                  currency translation adjustment                                                                           |   |   | 348                  |   |   |   | (136   | )      |   |   | 221 |   |
| Net                  change in unrealized holding gains and losses arising during the                  period                      |   |   | (4,511               | )      |   |   | (654   | )      |   |   | 8,536 |   |
| Less:                  reclassification adjustment for net gains (losses) realized in                  net                  income |   |   | 121                  |   |   |   | (75    | )      |   |   | (28 | ) |
| Deferred                  tax on other comprehensive income (loss)                                                                 |   |   | (4,284               | )      |   |   | (715   | )      |   |   | 8,785 |   |
|                                                                                                                               |   |   |                 |   |   |   |   |   |   |   |   |   |
| Net                  of tax                  amounts:                                                                              |   |   |                 |   |   |   |   |   |   |   |   |   |
| Net                  foreign currency translation adjustment                                                                       |   |   | (                813 | )      |   |   | 316    |   |   |   | (516 | ) |
| Net                  change in unrealized holding gains and losses arising during the                  period                      |   |   | 18,808               |   |   |   | (2,440 | )      |   |   | (53,905 | ) |
| Less:                  reclassification adjustment for net (gains) losses realized in                  net                  income |   |   | (1,955               | )      |   |   | 1,447  |   |   |   | (1,451 | ) |
| Other                  comprehensive income (loss), net of tax                                                                     |   | $      | 19,950               |   |   |   | (3,571 | )      |   | $ | (52,970 | ) |

----

|                                                             |   | (Unaudited)2007 |      |   | 2006   |   |      | 2005   |   |
|------------------------------------------------------------------|--------|-----------------|-----------|--------|--------|--------|-----------|--------|--------|
| Statutory                  capital and                  surplus: |   |            |      |   |   |   |      |   |   |
| Bermuda                                                          |   | $               | 1,494,032 |   |   |   | 1,178,261 |   |   | $ | 930,072 |   |
| United                  States                                   |   |            | 547,963   |   |   |   | 530,822   |   |   |   | 447,207 |   |
| United                  Kingdom                                  |   |            | 26,278    |   |   |   | 174,474   |   |   |   | 156,927 |   |
| Total                  statutory capital and surplus             |   |            | 2,068,273 |   |   |   | 1,883,557 |   |   |   | 1,534,206 |   |
| Statutory                  net income                  (loss):   |   |            |      |   |   |   |      |   |   |   |   |   |
| Bermuda                                                          |   |            | 311,401   |   |   |   | 281,247   |   |   |   | (68,459 | ) |
| United                  States                                   |   |            | 51,085    |   |   |   | 117,980   |   |   |   | (21,884 | ) |
| United                  Kingdom                                  |   |            | 3,826     |   |   |   | (7,927    | )      |   |   | (4,685 | ) |
| Total                  statutory net income (loss)               |   | $               | 366,312   |   |   |   | 391,300   |   |   | $ | (95,028 | ) |

| 8.                  Earnings                  (Loss)                  Per Common Share |
|----------------------------------------------------------------------------------------|

|                                                                                                        |   | NetIncome(Loss) |          | WeightedAverageSharesOutstanding |   | Earnings                  (Loss) Per CommonShare |   |
|-------------------------------------------------------------------------------------------------------------|--------|-----------------|---------------|----------------------------------|--------|--------------------------------------------------|--------|
| 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 |   |
|                                                                                                        |   |            |          |                             |   |                                             |   |   |   |   |
| Year                  Ended                  December 31, 2005:                                        |   |            |          |                             |   |                                             |   |   |   |   |
| Basic                  and diluted loss per common share:                                                   |   |            |          |                             |   |                                             |   |   |   |   |
| Loss                  attributable to common shareholders                                                   |   | $               | (138,224      | )                                |   | 45,915                                           |   | $ | (3.01 | ) |

----

| 9.                  Share                  Incentive                  Compensation and Employee Benefit                  Plans |
|--------------------------------------------------------------------------------------------------------------------------------|

|                                                                                | As                  of and for the years ended |   |
|-------------------------------------------------------------------------------------|------------------------------------------------|--------|
|                                                                                | December 31,                  2007        |   | December 31,                  2006 |   | December 31,                  2005 |   |
|                                                                                | Options                                        |   | Weighted                    Average Exercise Price |   | Options |   | Weighted                    Average Exercise Price |   | Options |   | Weighted                    Average Exercise Price |   |
| Outstanding                  – beginning of the year                          |                                           | 3,466  |   | $ | 24.20 |   |   | 3,918 |   | $ | 23.93 |   |   | 4,428 |   | $ | 23.40 |   |
| Granted                                                                             |                                           | 546    |   |   | 34.41 |   |   | 249 |   |   | 30.47 |   |   | 333 |   |   | 29.78 |   |
| Exercised                                                                           |                                           | 1,004  |   |   | 23.34 |   |   | 530 |   |   | 24.49 |   |   | 663 |   |   | 22.65 |   |
| Forfeited                                                                           |                                           | 82     |   |   | 30.69 |   |   | 171 |   |   | 26.24 |   |   | 180 |   |   | 25.20 |   |
| Outstanding                  - end of the year                                      |                                           | 2,926  |   | $ | 26.22 |   |   | 3,466 |   | $ | 24.20 |   |   | 3,918 |   | $ | 23.93 |   |
|                                                                                |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Options                  exercisable at year-end                                    |                                           | 2,125  |   |   |   |   |   | 2,930 |   |   |   |   |   | 2,896 |   |   |   |   |
| Weighted                  average exercise price of options exercisable at year-end |                                           |   |   | $ | 23.63 |   |   |   |   | $ | 23.11 |   |   |   |   | $ | 23.04 |   |

|                                               |   | 2007                       |   |   | 2006                       |   |   | 2005                     |   |
|----------------------------------------------------|--------|----------------------------|--------|--------|----------------------------|--------|--------|--------------------------|--------|
| Dividend                  yield                    |   |                       | 1.1    | %      |                       |   | 1.0    | %                        |   |   | 1.0 | % |
| Risk                  free interest rate           |   |                       | 4.6    | %      |                       |   | 4.6    | %                        |   |   | 3.0 | % |
| Expected                  volatility               |   |                       | 20.5   | %      |                       |   | 22.0   | %                        |   |   | 30.0 | % |
| Expected                  option life              |   | 5.5                  years |   |   | 5.4                  years |   |   | 7                  years |   |
| Weighted                  average grant fair value |   | $                          | 9.09   |   |                       | $      | 8.08   |                     |   | $ | 9.92 |   |

----

|                                                       |   | As                  of and for the years ended |   |
|------------------------------------------------------------|--------|------------------------------------------------|--------|
|                                                       |   | December 31,                  2007        |   |   | December 31,                  2006 |   |   | December 31,                  2005 |   |
|                                                       |   | Share                    Units                 |   |   | Weighted                    Average Grant Date Fair Value |   |   | Share                    Units |   |   | Weighted                    Average Grant Date Fair Value |   |   | Share                    Units |   |   | Weighted                    Average Grant Date Fair Value |   |
| Outstanding                  – beginning of the year |   |                                           | 181    |   |   | $ | 30.66 |   |   |   | 112 |   |   | $ | 30.93 |   |   |   | – |   |   |   | – |   |
| Granted                                                    |   |                                           | 160    |   |   |   | 34.42 |   |   |   | 82 |   |   |   | 30.31 |   |   |   | 122 |   |   | $ | 30.91 |   |
| Converted                                                  |   |                                           | 36     |   |   |   | 30.28 |   |   |   | – |   |   |   | – |   |   |   | 3 |   |   |   | 30.75 |   |
| Forfeited                                                  |   |                                           | 17     |   |   |   | 31.35 |   |   |   | 13 |   |   |   | 30.73 |   |   |   | 7 |   |   |   | 30.75 |   |
| Outstanding                  - end of the year             |   |                                           | 288    |   |   | $ | 32.76 |   |   |   | 181 |   |   | $ | 30.66 |   |   |   | 112 |   |   | $ | 30.93 |   |

| Share-based                  compensation expense             |   | $      | 9,387 |   |
|---------------------------------------------------------------|--------|--------|-------|--------|
| Tax                  benefit                                  |   |   | 783   |   |
| Share-based                  compensation expense, net of tax |   | $      | 8,604 |   |

----

| 10.                  Related                  Party                  Transactions and Agreements |
|--------------------------------------------------------------------------------------------------|

----

| 11.                  Operating                  Segment Information |
|---------------------------------------------------------------------|

|                                                                 |   | Propertyand                  Marine |    |    | Casualty |   |    | Finite                  Risk |   |   | Total  |   |
|----------------------------------------------------------------------|--------|-------------------------------------|---------|---------|----------|--------|---------|------------------------------|--------|--------|--------|--------|
| 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 losses on investments                  |   |                                |    | (2,615  | )        |
| Net                  foreign currency exchange gains                 |   |                                |    | 2,775   |     |
| Other                  expense                                       |   |                                |    | (5,787  | )        |
| 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 gains on investments                   |   |   |                                      | 1,090   |   |
| Net                  foreign currency exchange gains                 |   |   |                                      | 738     |   |
| Other                  expense                                       |   |   |                                      | (2,872  | )      |
| 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        | %      |

|                                                                 |   |   |     |     |   |   |    |   |   |   |    |   |   |   |      |   |
|----------------------------------------------------------------------|--------|--------|----------|----------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|-----------|--------|
| Year                  ended                  December 31, 2005: |   |   |     |     |   |   |    |   |   |   |    |   |   |   |      |   |
| Net                  premiums written                                |   | $      | 575,055  |     |   |   | 809,031 |   |   |   | 333,636 |   |   | $      | 1,717,722 |   |
| Net                  premiums earned                                 |   |   | 569,173  |     |   |   | 789,629 |   |   |   | 355,921 |   |   |   | 1,714,723 |   |
| Net                  losses and LAE                                  |   |   | 756,742  |     |   |   | 511,609 |   |   |   | 237,074 |   |   |   | 1,505,425 |   |
| Net                  acquisition expenses                            |   |   | 93,983   |     |   |   | 194,397 |   |   |   | 114,755 |   |   |   | 403,135   |   |
| Other                  underwriting expenses                         |   |   | 26,074   |     |   |   | 24,690  |   |   |   | 4,905   |   |   |   | 55,669    |   |
| Segment                  underwriting income (loss)                  |   | $      | (307,626 | )        |   |   | 58,933  |   |   |   | (813    | )      |   |   | (249,506  | )      |
|                                                                 |   |   |     |     |   |   |    |   |   |   |    |   |   |   |      |   |
| Net                  investment income                               |   |   |     | 129,445  |   |
| Net                  realized losses on investments                  |   |   |     | (3,046   | )      |
| Net                  foreign currency exchange losses                |   |   |     | (2,111   | )      |
| Other                  expense                                       |   |   |     | (586     | )      |
| Corporate                  expenses not allocated to segments        |   |   |     | (14,158  | )      |
| Interest                  expense                                    |   |   |     | (20,006  | )      |
| Loss                  on repurchase of debt                          |   |   |     | (2,486   | )      |
| Loss                  before income tax benefit                      |   |   | $        | (162,454 | )      |
|                                                                 |   |   |     |     |   |   |    |   |   |   |    |   |   |   |      |   |
| Ratios:                                                              |   |   |     |     |   |   |    |   |   |   |    |   |   |   |      |   |
| Net                  loss and LAE                                    |   |   | 133.0    | %        |   |   | 64.8    | %      |   |   | 66.6    | %      |   |   | 87.8      | %      |
| Net                  acquisition expense                             |   |   | 16.5     | %        |   |   | 24.6    | %      |   |   | 32.2    | %      |   |   | 23.5      | %      |
| Other                  underwriting expense                          |   |   | 4.6      | %        |   |   | 3.1     | %      |   |   | 1.4     | %      |   |   | 3.2       | %      |
| Combined                                                             |   |   | 154.1    | %        |   |   | 92.5    | %      |   |   | 100.2   | %      |   |   | 114.5     | %      |

|                           |   | 2007   |      |   | 2006   |   |      | 2005   |   |
|--------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
| United                  States |   | $      | 835,459   |   |   |   | 949,522   |   |   | $ | 1,449,216 |   |
| International                  |   |   | 284,348   |   |   |   | 227,091   |   |   |   | 268,506 |   |
| Total                          |   | $      | 1,119,807 |   |   |   | 1,176,613 |   |   | $ | 1,717,722 |   |

----

| 12.                  Commitments                  and                  Contingencies |
|--------------------------------------------------------------------------------------|

| Years                  Ending December 31, |   |   |   |
|-------------------------------------------------|--------|--------|--------|
| 2008                                            |   | $      | 2,912  |   |
| 2009                                            |   |   | 2,903  |   |
| 2010                                            |   |   | 2,142  |   |
| 2011                                            |   |   | 2,061  |   |
| 2012                                            |   |   | 1,934  |   |
| Thereafter                                      |   |   | 967    |   |
| Total                                           |   | $      | 12,919 |   |

| 13.                  Quarterly                  Financial Data (Unaudited) |
|----------------------------------------------------------------------------|

|                                                            |   | 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 |   |

----

|                                                            |   | Three                  months ended |    |
|-----------------------------------------------------------------|--------|-------------------------------------|---------|
|                                                            |   | March                  31,2006      |    |   | June                  30,2006 |   |   | September                  30,2006 |   |   | December 31,2006 |   |
| Net                  premiums earned                            |   | $                                   | 344,301 |   |   |   | 337,065 |   |   |   | 339,609 |   |   | $ | 315,726 |   |
| Net                  investment income                          |   |                                | 43,515  |   |   |   | 45,348 |   |   |   | 48,302 |   |   |   | 50,822 |   |
| Net                  losses and LAE                             |   |                                | 206,774 |   |   |   | 187,464 |   |   |   | 191,428 |   |   |   | 174,936 |   |
| Net                  acquisition expenses                       |   |                                | 69,239  |   |   |   | 76,052 |   |   |   | 74,994 |   |   |   | 65,638 |   |
| Operating                  expenses                             |   |                                | 22,988  |   |   |   | 23,392 |   |   |   | 25,348 |   |   |   | 23,762 |   |
|                                                            |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  income attributable to common shareholders |   |                                | 74,460  |   |   |   | 79,146 |   |   |   | 82,321 |   |   |   | 83,348 |   |
|                                                            |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings                  per common share:                     |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                           |   |                                | 1.26    |   |   |   | 1.34 |   |   |   | 1.38 |   |   |   | 1.40 |   |
| Diluted                                                         |   | $                                   | 1.16    |   |   |   | 1.24 |   |   |   | 1.28 |   |   | $ | 1.28 |   |
|                                                            |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average                  common shares outstanding:             |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                           |   |                                | 59,097  |   |   |   | 59,224 |   |   |   | 59,537 |   |   |   | 59,621 |   |
| Diluted                                                         |   |                                | 66,597  |   |   |   | 65,725 |   |   |   | 66,520 |   |   |   | 67,091 |   |

| 14.                  Condensed                  Consolidating Financial                  Information |
|------------------------------------------------------------------------------------------------------|

398,241,000.

----

| Condensed                  Consolidating Balance SheetDecember 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                  AND SHAREHOLDERS’ 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 |   |

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

----

| Consolidating                  Statement of OperationsFor                  the 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 gains on investments                                                               |   |                               | – |   |                              |   | – |                                        |   |   | (2,615                                     | )      |   |         | –  |   |   |   | (2,615 | ) |
| Other                  income (expense)                                                                          |   |                               | 4,167   |   |                              |   | – |                                        |   |   | (9,954                                     | )      |   |         | –  |   |   |   | (5,787 | ) |
| Total                  revenue                                                                                   |   |                               | 10,616  |   |                              |   | 2,348   |                                        |   |   | 1,365,944                                  |   |   |         | –  |   |   |   | 1,378,908 |   |
| Expenses:                                                                                                        |   |                               |    |   |                              |   |    |                                        |   |   |                                       |   |   |         |     |   |   |   |   |   |
| Net                  losses and loss adjustment expenses                                                         |   |                               | – |   |                              |   | – |                                        |   |   | 655,487                                    |   |   |         | –  |   |   |   | 655,487 |   |
| Net                  acquisition expenses                                                                        |   |                               | – |   |                              |   | – |                                        |   |   | 220,330                                    |   |   |         | –  |   |   |   | 220,330 |   |
| 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  |                                        |   |   | 947,581                                    |   |   |         | –  |   |   |   | 998,105 |   |
|                                                                                                             |   |                               |    |   |                              |   |    |                                        |   |   |                                       |   |   |         |     |   |   |   |   |   |
| 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 |   |
| Net                  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 OperationsFor                  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 gains on investments                                                               |   |                               | – |   |                              |   | – |                                        |   |   | 1,090                                      |   |   |         | –  |   |   |   | 1,090 |   |
| Other                  income (expense)                                                                          |   |                               | 3,577   |   |                              |   | – |                                        |   |   | (6,449                                     | )      |   |         | –  |   |   |   | (2,872 | ) |
| 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 |   |
| Net                  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 (loss)                                                                               |   |                               | 329,657 |   |                              |   | 50,871  |                                        |   |   | 419,314                                    |   |   |         | (470,185 | ) |   |   | 329,657 |   |
| Preferred                  dividends                                                                             |   |                               | 10,382  |   |                              |   | – |                                        |   |   | –                                    |   |   |         | –  |   |   |   | 10,382 |   |
| Net                  income attributable to common shareholders                                                  |   |  $                            | 319,275 |   |                              |   | 50,871  |                                        |   |   | 419,314                                    |   |   |         | (470,185 |  ) |   |  $ | 319,275 |   |

----

| Consolidating                  Statement of OperationsFor                  the year ended December 31, 2005 |   | Platinum                  Holdings |     |    | Platinum                  Finance |   |    | Non-guarantor                  Subsidiaries |   |   | Consolidating                  Adjustments |    |   | Consolidated |    |
|------------------------------------------------------------------------------------------------------------------|--------|------------------------------------|----------|---------|-----------------------------------|--------|---------|---------------------------------------------|--------|--------|--------------------------------------------|---------|--------|--------------|---------|
| Revenue:                                                                                                         |   |                               |     |    |                              |   |    |                                        |   |   |                                       |    |   |         |    |
| Net                  premiums earned                                                                             |   | $                                  | –  |    |                              |   | – |                                        |   |   | 1,714,723                                  |    |   |         | – |   |   | $ | 1,714,723 |   |
| Net                  investment income                                                                           |   |                               | 1,724    |    |                              |   | 937     |                                        |   |   | 126,867                                    |    |   |         | (83     | ) |   |   | 129,445 |   |
| Net                  realized losses on investments                                                              |   |                               | –  |    |                              |   | (15     | )                                           |   |   | (3,031                                     | )       |   |         | – |   |   |   | (3,046 | ) |
| Other                  income (expense)                                                                          |   |                               | 7,036    |    |                              |   | – |                                        |   |   | (7,622                                     | )       |   |         | – |   |   |   | (586 | ) |
| Total                  revenue                                                                                   |   |                               | 8,760    |    |                              |   | 922     |                                        |   |   | 1,830,937                                  |    |   |         | (83     | ) |   |   | 1,840,536 |   |
| Expenses:                                                                                                        |   |                               |     |    |                              |   |    |                                        |   |   |                                       |    |   |         |    |   |   |   |   |   |
| Net                  losses and loss adjustment expenses                                                         |   |                               | –  |    |                              |   | – |                                        |   |   | 1,505,425                                  |    |   |         | – |   |   |   | 1,505,425 |   |
| Net                  acquisition expenses                                                                        |   |                               | –  |    |                              |   | – |                                        |   |   | 407,680                                    |    |   |         | (4,545  | ) |   |   | 403,135 |   |
| Operating                  expenses                                                                              |   |                               | 13,393   |    |                              |   | 635     |                                        |   |   | 51,337                                     |    |   |         | 4,462   |   |   |   | 69,827 |   |
| Net                  foreign currency exchange losses                                                            |   |                               | 2        |    |                              |   | – |                                        |   |   | 2,109                                      |    |   |         | – |   |   |   | 2111 |   |
| Interest                  expense                                                                                |   |                               | 71       |    |                              |   | 19,935  |                                        |   |   | –                                    |    |   |         | – |   |   |   | 20,006 |   |
| Loss                  on repurchase of debt                                                                      |   |                               | –  |    |                              |   | 2,486   |                                        |   |   | –                                    |    |   |         | – |   |   |   | 2,486 |   |
| Total                  expenses                                                                                  |   |                               | 13,466   |    |                              |   | 23,056  |                                        |   |   | 1,966,551                                  |    |   |         | (83     | ) |   |   | 2,002,990 |   |
|                                                                                                             |   |                               |     |    |                              |   |    |                                        |   |   |                                       |    |   |         |    |   |   |   |   |   |
| Loss                  before income tax benefit                                                                  |   |                               | (4,706   | )       |                              |   | (22,134 | )                                           |   |   | (135,614                                   | )       |   |         | – |   |   |   | (162,454 | ) |
| Income                  tax benefit                                                                              |   |                               | –  |    |                              |   | (7,746  | )                                           |   |   | (17,221                                    | )       |   |         | – |   |   |   | (24,967 | ) |
| Net                  loss before equity in                                                                       |   |                               |     |    |                              |   |    |                                        |   |   |                                       |    |   |         |    |   |   |   |   |   |
| earnings                  of subsidiaries                                                                        |   |                               | (4,706   | )       |                              |   | (14,388 | )                                           |   |   | (118,393                                   | )       |   |         | – |   |   |   | (137,487 | ) |
| Equity                  in earnings of subsidiaries                                                              |   |                               | (132,781 | )       |                              |   | (27,557 | )                                           |   |   | (62,160                                    | )       |   |         | 222,498 |   |   |   | – |   |
| Net                  loss                                                                                        |   |                               | (137,487 | )       |                              |   | (41,945 | )                                           |   |   | (180,553                                   | )       |   |         | 222,498 |   |   |   | (137,487 | ) |
| Preferred                  dividends                                                                             |   |                               | 737      |    |                              |   | – |                                        |   |   | –                                    |    |   |         | – |   |   |   | 737 |   |
| Net                  loss attributable to common shareholders                                                    |   |  $                            | (138,224 |  ) |                              |   | (41,945 | )                                      |   |   | (180,553                                   |  ) |   |         | 222,498 |   |   |  $ | (138,224 | )  |

| Condensed                  Consolidating Statement of Cash FlowsFor                  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 | )                         |   |   | 466,621                                    |   |   |         | –  |   |   | $ | 443,562 |   |
| 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 | ) |
| Net                  increase (decrease) in cash and cash equivalents                                                      |   |             | (66,447  | )      |                              |   | (20,945 | )                         |   |   | 312,019                                    |   |   |         | –  |   |   |   | 224,627 |   |
| Cash                  and cash equivalents at beginning of period                                                          |   |             | 106,039  |   |                              |   | 39,294  |                      |   |   | 706,319                                    |   |   |         | –  |   |   |   | 851,652 |   |
| Cash                  and cash equivalents at end of period                                                                |   | $                | 39,592   |   |                              |   | 18,349  |                      |   |   | 1,018,338                                  |   |   |         | –  |   |   | $ | 1,076,279 |   |

----

| Condensed                  Consolidating Statement of Cash FlowsFor                  the year ended December 31, 2006 |   | PlatinumHoldings |    |   | Platinum                  Finance |   |    | Non-guarantorSubsidiaries |   |   | Consolidating                  Adjustments |   |   | Consolidated |    |
|----------------------------------------------------------------------------------------------------------------------------|--------|------------------|---------|--------|-----------------------------------|--------|---------|---------------------------|--------|--------|--------------------------------------------|--------|--------|--------------|---------|
|                                                                                                                       |   |             |    |   |                              |   |    |                      |   |   |                                       |   |   |         |    |
| Net                  cash provided by (used in) operating activities                                                       |   | $                | (9,650  | )      |                              |   | (6,483  | )                         |   |   | 542,934                                    |   |   |         | – |   |   | $ | 526,801 |   |
| 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 common shareholders                                                                     |   |             | (19,029 | )      |                              |   | – |                      |   |   | (41,600                                    | )      |   |         | 41,600  |   |   |   | (19,029 | ) |
| Dividends                  paid to preferred shareholders                                                                  |   |             | (9,818  | )      |                              |   | – |                      |   |   | –                                    |   |   |         | – |   |   |   | (9,818 | ) |
| 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 | ) |
| Net                  increase (decrease) in cash and cash equivalents                                                      |   |             | (23,992 | )      |                              |   | 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 |   |

| Condensed                  Consolidating Statement of Cash FlowsFor                  the year ended December 31, 2005 |   | Platinum                  Holdings |     |   | Platinum                  Finance |   |     | Non-guarantor                  Subsidiaries |   |   | Consolidating                  Adjustments |   |   | Consolidated |     |
|----------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------|----------|--------|-----------------------------------|--------|----------|---------------------------------------------|--------|--------|--------------------------------------------|--------|--------|--------------|----------|
|                                                                                                                       |   |                               |     |   |                              |   |     |                                        |   |   |                                       |   |   |         |     |
| Net                  cash provided by (used in) operating activities                                                       |   | $                                  | (4,999   | )      |                              |   | (16,340  | )                                           |   |   | 619,013                                    |   |   |         | –  |   |   | $ | 597,674 |   |
| Investing                  Activities:                                                                                     |   |                               |     |   |                              |   |     |                                        |   |   |                                       |   |   |         |     |   |   |   |   |   |
| Proceeds                  from sale of available-for-sale securities                                                       |   |                               | –  |   |                              |   | 3,026    |                                        |   |   | 888,773                                    |   |   |         | –  |   |   |   | 891,799 |   |
| Proceeds                  from maturity or paydown of available-for-sale securities                                        |   |                               | –  |   |                              |   | 439      |                                        |   |   | 97,492                                     |   |   |         | –  |   |   |   | 97,931 |   |
| Proceeds                  from sale of subsidiary shares                                                                   |   |                               | –  |   |                              |   | –  |                                        |   |   | 193,000                                    |   |   |         | (193,000 | ) |   |   | – |   |
| Purchase                  of subsidiary shares                                                                             |   |                               | –  |   |                              |   | –  |                                        |   |   | (139,902                                   | )      |   |         | 139,902  |   |   |   | – |   |
| Acquisition                  of available-for-sale securities                                                              |   |                               | –  |   |                              |   | (12,347  | )                                           |   |   | (1,699,158                                 | )      |   |         | –  |   |   |   | (1,711,505 | ) |
| Dividends                  from subsidiaries                                                                               |   |                               | 17,000   |   |                              |   | –  |                                        |   |   | –                                    |   |   |         | (17,000  | ) |   |   | – |   |
| Decrease                  in short-term investments                                                                        |   |                               | –  |   |                              |   | –  |                                        |   |   | (8,793                                     | )      |   |         | –  |   |   |   | (8,793 | ) |
| Contributions                  to subsidiaries                                                                             |   |                               | (477,500 | )      |                              |   | (75,100  | )                                           |   |   | –                                    |   |   |         | 552,600  |   |   |   | – |   |
| Net                  cash used in investing activities                                                                     |   |                               | (460,500 | )      |                              |   | (83,982  | )                                           |   |   | (668,588                                   | )      |   |         | 482,502  |   |   |   | (730,568 | ) |
|                                                                                                                       |   |                               |     |   |                              |   |     |                                        |   |   |                                       |   |   |         |     |   |   |   |   |   |
| Financing                  Activities:                                                                                     |   |                               |     |   |                              |   |     |                                        |   |   |                                       |   |   |         |     |   |   |   |   |   |
| Dividends                  paid to shareholders                                                                            |   |                               | (14,775  | )      |                              |   | –  |                                        |   |   | (17,000                                    | )      |   |         | 17,000   |   |   |   | (14,775 | ) |
| Proceeds                  from exercise of share options                                                                   |   |                               | 15,026   |   |                              |   | –  |                                        |   |   | –                                    |   |   |         | –  |   |   |   | 15,026 |   |
| Proceeds                  from issuance of common shares                                                                   |   |                               | 425,757  |   |                              |   | 139,902  |                                        |   |   | –                                    |   |   |         | (139,902 | ) |   |   | 425,757 |   |
| Proceeds                  from issuance of debt                                                                            |   |                               | –  |   |                              |   | 246,900  |                                        |   |   | –                                    |   |   |         | –  |   |   |   | 246,900 |   |
| Proceeds                  from issuance of preferred shares                                                                |   |                               | 167,509  |   |                              |   | –  |                                        |   |   | –                                    |   |   |         | –  |   |   |   | 167,509 |   |
| Capital                  contribution from parent                                                                          |   |                               | –  |   |                              |   | –  |                                        |   |   | 552,600                                    |   |   |         | (552,600 | ) |   |   | – |   |
| Purchase                  of common shares                                                                                 |   |                               | –  |   |                              |   | (193,000 | )                                           |   |   | –                                    |   |   |         | 193,000  |   |   |   | – |   |
| Repurchase                  of debt obligations                                                                            |   |                               | –  |   |                              |   | (96,674  | )                                           |   |   | –                                    |   |   |         | –  |   |   |   | (96,674 | ) |
| Net                  cash provided by financing activities                                                                 |   |                               | 593,517  |   |                              |   | 97,128   |                                        |   |   | 535,600                                    |   |   |         | (482,502 | ) |   |   | 743,743 |   |
| Net                  increase (decrease) in cash and cash equivalents                                                      |   |                               | 128,018  |   |                              |   | (3,194   | )                                      |   |   | 486,025                                    |   |   |         | –  |   |   |   | 610,849 |   |
| Cash                  and cash equivalents at beginning of year                                                            |   |                               | 1,944    |   |                              |   | 8,204    |                                        |   |   | 199,749                                    |   |   |         | –  |   |   |   | 209,897 |   |
| Cash                  and cash equivalents at end of year                                                                  |   | $                                  | 129,962  |   |                              |   | 5,010    |                                        |   |   | 685,774                                    |   |   |         | –  |   |   | $ | 820,746 |   |

----

|                                                                                                                                                          | 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, 2007 | S-3    |
|                                                                                                                                                          |   |
| Schedule                  II Condensed Financial Information of the Registrant                                                                                | S-4    |
|                                                                                                                                                          |   |
| Schedule                  III Supplementary Insurance Information for the years ended                  December 31, 2007, 2006 and 2005                  | S-7    |
|                                                                                                                                                          |   |
| Schedule                  IVReinsurance for the years ended December 31, 2007, 2006 and                  2005                                            | S-8    |
|                                                                                                                                                          |   |

----

----

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

|                                                                              |   | Cost*  |      |   | Fair                  Value |   |      | Amount                  at which shown in Balance Sheet |   |
|-----------------------------------------------------------------------------------|--------|--------|-----------|--------|-----------------------------|--------|-----------|---------------------------------------------------------|--------|
|                                                                              |   |   |      |   |                        |   |      |                                                    |   |
| Fixed                  maturities:                                                |   |   |      |   |                        |   |      |                                                    |   |
| Bonds:                                                                            |   |   |      |   |                        |   |      |                                                    |   |
| United                  States Government and government agencies and authorities |   | $      | 159,834   |   |                        |   | 160,800   |                                                    |   | $ | 160,800 |   |
| State,                  municipalities and political subdivisions                 |   |   | 232,494   |   |                        |   | 233,245   |                                                    |   |   | 233,245 |   |
| Foreign                  governments                                              |   |   | 175,629   |   |                        |   | 174,552   |                                                    |   |   | 174,552 |   |
| Foreign                  corporate                                                |   |   | 174,463   |   |                        |   | 172,302   |                                                    |   |   | 172,302 |   |
| Public                  utilities                                                 |   |   | 113,940   |   |                        |   | 113,231   |                                                    |   |   | 113,231 |   |
| All                  other corporate                                              |   |   | 2,496,711 |   |                        |   | 2,479,016 |                                                    |   |   | 2,479,016 |   |
| Total                  bonds                                                      |   |   | 3,353,071 |   |                        |   | 3,333,146 |                                                    |   |   | 3,333,146 |   |
| Redeemable                  preferred stock                                       |   |   | 32,861    |   |                        |   | 28,595    |                                                    |   |   | 28,595 |   |
| Total                  fixed maturities                                           |   |   | 3,385,932 |   |                        |   | 3,361,741 |                                                    |   |   | 3,361,741 |   |
| Preferred                  stock                                                  |   |   | 12,246    |   |                        |   | 9,607     |                                                    |   |   | 9,607 |   |
| Other                  long term investments                                      |   |   | –   |   |                        |   | –   |                                                    |   |   | – |   |
| Short-term                  investments                                           |   |   | 13,871    |   |                        |   | 13,876    |                                                    |   |   | 13,876 |   |
| Total                  investments                                                |   | $      | 3,412,049 |   |                        |   | 3,385,224 |                                                    |   | $ | 3,385,224 |   |

----

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

|                                                                                                                                                                                   |   | 2007   |      |   | 2006   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| ASSETS                                                                                                                                                                                 |   |   |      |   |   |   |
| Investments                  in affiliates                                                                                                                                             |   | $      | 1,958,019 |   |   | $      | 1,749,762 |   |
| Cash                                                                                                                                                                                   |   |   | 39,593    |   |   |   | 106,039 |   |
| Other                  assets                                                                                                                                                          |   |   | 10,814    |   |   |   | 9,296 |   |
| Total                  assets                                                                                                                                                          |   | $      | 2,008,426 |   |   | $      | 1,865,097 |   |
|                                                                                                                                                                                   |   |   |      |   |   |   |   |   |
| LIABILITIES                  AND SHAREHOLDERS’ EQUITY                                                                                                                            |   |   |      |   |   |   |   |   |
| Liabilities                                                                                                                                                                            |   |   |      |   |   |   |   |   |
| Accrued                  expenses and other liabilities                                                                                                                                |   | $      | 10,049    |   |   | $      | 7,036 |   |
| Total                  liabilities                                                                                                                                                     |   |   | 10,049    |   |   |   | 7,036 |   |
|                                                                                                                                                                                   |   |   |      |   |   |   |   |   |
| 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, 53,779,914                  and                  59,671,959 shares issued and outstanding, respectively |   |   | 538       |   |   |   | 597 |   |
| Additional                  paid-in capital                                                                                                                                            |   |   | 1,338,466 |   |   |   | 1,545,979 |   |
| Unearned                  share grant compensation                                                                                                                                     |   |   | –   |   |   |   | – |   |
| Accumulated                  other comprehensive income (loss)                                                                                                                         |   |   | (24,339   | )      |   |   | (44,289 | ) |
| Retained                  earnings                                                                                                                                                     |   |   | 683,655   |   |   |   | 355,717 |   |
| Total                  shareholders' equity                                                                                                                                            |   |   | 1,998,377 |   |   |   | 1,858,061 |   |
| Total                  liabilities and shareholders' equity                                                                                                                            |   | $      | 2,008,426 |   |   | $      | 1,865,097 |   |

----

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

|                                                                   |   | 2007   |    |   | 2006   |   |    | 2005   |   |
|------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Revenues:                                                              |   |   |    |   |   |   |    |   |   |
| Net                  investment income                                 |   | $      | 6,449   |   |   |   | 5,912   |   |   | $ | 1,724 |   |
| Other                  income                                          |   |   | 4,167   |   |   |   | 3,577   |   |   |   | 7,036 |   |
|                                                                   |   |   | 10,616  |   |   |   | 9,489   |   |   |   | 8,760 |   |
| Expenses:                                                              |   |   |    |   |   |   |    |   |   |   |   |   |
| Interest                  expenses                                     |   |   | – |   |   |   | – |   |   |   | 71 |   |
| Operating                  expenses                                    |   |   | 28,693  |   |   |   | 23,803  |   |   |   | 13,395 |   |
| Total                  expenses                                        |   |   | 28,693  |   |   |   | 23,803  |   |   |   | 13,466 |   |
|                                                                   |   |   |    |   |   |   |    |   |   |   |   |   |
| Loss                  before income taxes                              |   |   | (18,077 | )      |   |   | (14,314 | )      |   |   | (4,706 | ) |
| Income                  tax expense                                    |   |   | 2,400   |   |   |   | – |   |   |   | – |   |
| Net                  loss before equity in earnings of affiliate       |   |   | (20,477 | )      |   |   | (14,314 | )      |   |   | (4,706 | ) |
| Equity                  in earnings (loss) of affiliates               |   |   | 377,455 |   |   |   | 343,971 |   |   |   | (132,781 | ) |
| Net                  income (loss) before preferred dividends          |   |   | 356,978 |   |   |   | 329,657 |   |   |   | (137,487 | ) |
| Preferred                  dividends                                   |   |   | 10,408  |   |   |   | 10,382  |   |   |   | 737 |   |
| Net                  income (loss) attributable to common shareholders |   | $      | 346,570 |   |   |   | 319,275 |   |   | $ | (138,224 | ) |

----

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

|                                                                                                      |   | 2007   |     |   | 2006   |   |    | 2005   |   |
|-----------------------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|---------|--------|--------|
| Operating                  Activities:                                                                    |   |   |     |   |   |   |    |   |   |
| Net                  loss before equity in earnings of affiliates                                         |   | $      | (20,477  | )      |   |   | (14,314 | )      |   | $ | (4,706 | ) |
| Adjustments                  to reconcile net income to net cash provided in                  operations: |   |   |     |   |   |   |    |   |   |   |   |   |
| Share                  based compensation                                                                 |   |   | 4,895    |   |   |   | 3,552   |   |   |   | 2,313 |   |
| Depreciation                  and amortization                                                            |   |   | 269      |   |   |   | 129     |   |   |   | 129 |   |
| Other,                  net                                                                               |   |   | 5,144    |   |   |   | 983     |   |   |   | (2,735 | ) |
| Net                  cash used in operating activities                                                    |   |   | (10,169  | )      |   |   | (9,650  | )      |   |   | (4,999 | ) |
|                                                                                                      |   |   |     |   |   |   |    |   |   |   |   |   |
| Investing                  Activities:                                                                    |   |   |     |   |   |   |    |   |   |   |   |   |
| Dividends                  and distributions from subsidiaries                                            |   |   | 190,000  |   |   |   | 1,600   |   |   |   | 17,000 |   |
| Contributions                  to subsidiaries                                                            |   |   | –  |   |   |   | – |   |   |   | (477,500 | ) |
| Net                  cash provided by (used in) investing activities                                      |   |   | 190,000  |   |   |   | 1,600   |   |   |   | (460,500 | ) |
|                                                                                                      |   |   |     |   |   |   |    |   |   |   |   |   |
| Financing                  Activities:                                                                    |   |   |     |   |   |   |    |   |   |   |   |   |
| Dividends                  paid to preferred shareholders                                                 |   |   | (10,408  | )      |   |   | (9,818  | )      |   |   | – |   |
| Dividends                  paid to common shareholders                                                    |   |   | (18,632  | )      |   |   | (19,029 | )      |   |   | (14,775 | ) |
| Proceeds                  from exercise of share options                                                  |   |   | 23,435   |   |   |   | 12,974  |   |   |   | 15,026 |   |
| Net                  proceeds from issuance of common shares                                              |   |   | –  |   |   |   | – |   |   |   | 425,757 |   |
| Net                  proceeds from issuance of preferred shares                                           |   |   | –  |   |   |   | – |   |   |   | 167,509 |   |
| Purchase                  of common shares                                                                |   |   | (240,672 | )      |   |   | – |   |   |   | – |   |
| Net                  cash (used in) provided by financing activities                                      |   |   | (246,277 | )      |   |   | (15,873 | )      |   |   | 593,517 |   |
| Net                  increase (decrease) in cash and cash equivalents                                     |   |   | (66,446  | )      |   |   | (23,923 | )      |   |   | 128,018 |   |
| Cash                  and cash equivalents at beginning of year                                           |   |   | 106,039  |   |   |   | 129,962 |   |   |   | 1,944 |   |
| Cash                  and cash equivalents at end of year                                                 |   | $      | 39,593   |   |   |   | 106,039 |   |   | $ | 129,962 |   |

----

| 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,                  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 |   |
|                                                                 |   |                                              |    |                                                                            |   |                                  |   |                                                      |    |                               |    |                                   |   |                                                                              |   |                                                               |   |                                      |      |                                 |   |   |   |   |   |   |   |   |   |
| Year                  ended December 31,                  2005: |   |                                              |    |                                                                            |   |                                  |   |                                                      |    |                               |    |                                   |   |                                                                              |   |                                                               |   |                                      |      |                                 |   |   |   |   |   |   |   |   |   |
| Property                  and Marine                                 |   |                                              | 14,357  |                                                                            |   | 816,328                               |   |                                                      | 66,741  |                               |    |                                   |   | 569,173                                                                           |   |                                                               |   |                                      | 756,742   |                                 |   | 70,005 |   |   |   |   |   | 575,055 |   |
| Casualty                                                             |   |                                              | 73,622  |                                                                            |   | 1,107,316                             |   |                                                      | 292,513 |                               |    |                                   |   | 789,629                                                                           |   |                                                               |   |                                      | 511,609   |                                 |   | 140,758 |   |   |   |   |   | 809,031 |   |
| Finite                  Risk                                         |   |                                              | 42,821  |                                                                            |   | 345,011                               |   |                                                      | 134,865 |                               |    |                                   |   | 355,921                                                                           |   |                                                               |   |                                      | 237,074   |                                 |   | 88,797 |   |   |   |   |   | 333,636 |   |
| Total                                                                |   | $                                                 | 130,800 |                                                                            |   | 2,268,655                             |   |                                                      | 494,119 |                               | – |                                   |   | 1,714,723                                                                         |   | 129,455                                                            |   |                                      | 1,505,425 |                                 |   | 299,560 |   |   | 14,158 |   | $ | 1,717,722 |   |

----

| 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, 2007: | 4      |                           |   |                                      |   |                                          |    |                        |   |                                                 |
| 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: | 11     |                           |   |                                      |   |                                          |    |                        |   |                                                 |
| 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%                                               |
|                                                                 |   |                           |   |                                      |   |                                          |    |                        |   |                                                 |
| Year                  ended                  December 31, 2005: | 18     |                           |   |                                      |   |                                          |    |                        |   |                                                 |
| Property                  and Marine                                 |   | –                        |   | 21,521                                    |   | 596,576                                       |    | 575,055                     |   | 103.7%                                               |
| Casualty                                                             |   | –                        |   | 133                                       |   | 809,164                                       |    | 809,031                     |   | 100.0%                                               |
| Finite                  Risk                                         |   | –                        |   | 25,779                                    |   | 359,415                                       |    | 333,636                     |   | 107.7%                                               |
| Total                                                                |   | –                        | $      | 47,433                                    |   | 1,765,155                                     |  $ | 1,717,722                   |   | 102.8%                                               |

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