1171500--2/28/2007--PLATINUM_UNDERWRITERS_HOLDINGS

related topics

{regulation, change, law}

{loss, insurance, financial}

{financial, litigation, operation}

{interest, director, officer}

{operation, international, foreign}

{stock, price, share}

{capital, credit, financial}

{acquisition, growth, future}

{personnel, key, retain}

{competitive, industry, competition}

{provision, law, control}

If the loss limitation methods and pricing models we employ are not effective, our financial condition or results of operations could be materially adversely affected. A downgrade in our financial strength ratings could adversely affect our ability to write new business. Increased competition could adversely affect our profitability. The property and casualty reinsurance business is historically cyclical, and we expect to experience periods with excess underwriting capacity and unfavorable pricing. The imposition of U.S. corporate income tax on Platinum Holdings and its non-U.S. subsidiaries could adversely affect our results of operations. We are dependent on the business provided to us by reinsurance brokers and we may be exposed to liability for brokers failure to make payments to clients for their claims. Retrocessional reinsurance may become unavailable on acceptable terms. The imposition of U.S. corporate income tax on Platinum Holdings and its non-U.S. subsidiaries could adversely affect our results of operations. We are dependent on the business provided to us by reinsurance brokers and we may be exposed to liability for brokers failure to make payments to clients for their claims. Retrocessional reinsurance may become unavailable on acceptable terms. Our invested assets are subject to market volatility and interest rate and currency exchange rate fluctuation. We could be adversely affected by the loss of one or more key executives or by an inability to retain or replace qualified senior management. The current investigations into finite risk reinsurance products could have a material adverse effect on our financial condition or results of operations. It may be difficult to enforce service of process and judgments against us and our officers and directors. There are limitations on the ownership, transfer and voting rights of our common shares. Platinum Holdings is a holding company and, consequently, its cash flow is dependent on dividends, interest and other permissible payments from its subsidiaries. Losses from operations may deplete our capital base and create a need to obtain additional capital that may not be readily available in the capital markets or only be available on unfavorable terms. Under certain circumstances, you may be required to pay taxes on your pro rata share of the related person insurance income of Platinum Bermuda and of Platinum UK. A recently published IRS Revenue Ruling could be applied to recharacterize the insurance arrangements between Platinum US and Platinum Bermuda. We may become subject to taxes in Bermuda after 2016. Bermuda could be subject to sanctions by a number of multinational organizations which could adversely affect Bermuda companies. A recently published IRS Revenue Ruling could be applied to recharacterize the insurance arrangements between Platinum US and Platinum Bermuda. We may become subject to taxes in Bermuda after 2016. Bermuda could be subject to sanctions by a number of multinational organizations which could adversely affect Bermuda companies.

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1171500--2/28/2007--PLATINUM_UNDERWRITERS_HOLDINGS_LTD