NEW YORK (AP) — Reinsurance provider Platinum Underwriters Holdings Ltd. on Tuesday reported a hefty first-quarter loss due to natural disasters in Japan, New Zealand and Australia.
The results missed Wall Street's expectations. However, the Bermuda-based company said it expects property catastrophe reinsurance rates to improve for the rest of the year, especially when contracts renew.
The company, which sells "reinsurance" policies that insurers buy to cover losses on insurance policies, posted a loss of $157.2 million, or $4.20 per share, in the three months ended March 31. That compared with a profit of $15.4 million, or 32 cents per share, in the year-ago period.
The period included $248.1 million in net catastrophe losses related to New Zealand's earthquake, Japan's earthquake and tsunami and Australia's flood and cyclone.
The company said net premiums earned shrank 17 percent to $182.9 million from $220.2 million.
On average, analysts polled by FactSet had expected a loss of $3.53 per share.
Revenue slipped to $215.3 million from $245.3 million in the previous year.
Shares of the company rose 32 cents to close at $37.42.
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