In April, it was estimated that Platinum Underwriters Holdings Limited, would suffer claims losses totaling nearly $75 million dollars stemming from the massive earthquake and resulting tsunamis that struck Japan earlier this year.
Platinum Underwriters Ratings
Despite the recent large claims payouts, Platinum Underwriters remains a viable and financially fit company. A.M. Best consistently rates the financial strength of PUH and its affiliate companies as “A,” excellent owing to consistent positive income results and its strong cash position. Platinum Underwriters’ credit ratings are also ranked as “A,” excellent and the financial outlook for the entire Platinum Underwriters group is stable.
Platinum Underwriters Products
Platinum Underwriters’ principal source of business is reinsurance. By definition, reinsurance is the transference of a portion of a financial risk from one insurance company to another. This reduces the exposure of the transferring company, called the ceding company, and effectively spreads the potential risk over two or more companies. Reinsurance is insurance coverage that protects insurers from the potential claims of their policyholders.
Platinum Underwriters’ principal product is casualty reinsurance. This third party coverage takes many forms and includes:
- General liability and product coverage for businesses, farmers, and homeowners
- Liability coverage for professionals in many disciplines including:
- Corporation office holders and board members
- Health and accident coverage, which provides back up and support for various employer health plans, student health programs and some Medicare programs.
- Standard umbrella and excess coverage reinsurance policies
- Casualty reinsurance where two or more companies “clash” over which is liable is cases of multiple coverage or situations where there are many claimants acting against one policy
- Reinsurance for automobile claims of liability
- Reinsurance for risks associated with surety bonds
- Trade credit policies to protect merchants against non-payment
Reinsurance that covers risks associated with business assets located in politically volatile areas of the world including:
- Latin America
- Central Europe
- Middle East
A Closing Reminder
Not all of the above referenced and detailed programs are available directly to the general public. They are not policies for individuals or businesses. What they are, are reinsurance programs, which are made available to insurance companies who wish to share the financial risks of their policy portfolios, and are willing to pay premiums to Platinum Underwriters for their services.
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