According to Joseph Fisher, Platinum's chief financial officer, the Bermuda-based reinsurer reported the best quarterly net income result since its initial public offering?$50 million, or $1.03 per share, in fourth-quarter 2004.

The fourth-quarter result was about $100,000 higher than net income for fourth-quarter 2003.

Commenting on Platinum's ability to post full-year net income of $84.8 million, or $1.81 per share, in 2004, CEO Gregory Morrison noted that premium production was strong, with net written premiums surging 40 percent over 2003 to $1.65 billion.

Mr. Fisher also attributed strong results to favorable prior-year loss development on short-tailed lines (of roughly $12 million), a lower than expected level of catastrophe losses in the quarter (which he said benefited income by about $17 million), and growing investment income.

Investment income grew 47 percent to $84.5 million, reflecting growth in cash flow primarily from casualty lines, he said.

He also noted that Platinum recorded a 96.7 combined ratio for 2004 (compared to 84.7 for 2003), while absorbing pre-tax underwriting losses of $191 million?roughly 13 combined ratio points?from third-quarter 2004 hurricanes.

Turning to Jan. 1 renewals, Michael Price, chief underwriting officer, said that while Platinum successfully maintained an inforce portfolio roughly the same size as last year's, "there is little doubt that the Jan. 1, 2005 renewal season was more challenging than Jan. 1, 2004."

In particular, he discussed challenges related to North American casualty business where Platinum chose to non-renew some large accounts reducing its exposure to large public company directors and officers liability.

"In most cases, the renewal process was not easy. There seems to be a genuine difference of opinion between primary companies and reinsurers over the profitability of casualty business and the likely direction of future rate changes," he said, adding that in many cases, ceding companies retained more business than expected. "And some programs never got placed at all."

He continued: "We're somewhat encouraged by this outcome because the higher net retentions may mean that primary companies are?more likely to do what needs to be done in order maintain profitability for the marketplace as a whole."

Like executives at other reinsurance companies, Mr. Price also took note of losses from Hurricane Ivan that caught the marine market off guard.

"I am disappointed that we had to increase our loss provision in the quarter," he said, referring to the fact that Platinum revised its third-quarter estimate of losses by $35 million pre-tax, primarily because of Ivan and the business interruption component of marine losses associated with that storm.

"While we believe that we now have appropriate catastrophe loss reserves established,? there can be no assurance that we will not have to change them at a later date. That's just a reminder that ours is a volatile business," he said.

Platinum executives also updated analysts on the status of investigations into finite deals by the Securities and Exchange Commission and the New York attorney general's office, and their impact on the market.

Generally, finite reinsurance is distinguished from traditional reinsurance in that the reinsurer's risk is more limited than it is in traditional contracts.

The Reinsurance Association of America describes finite reinsurance as "a term used to describe a broad spectrum of treaty reinsurance arrangements which provide coverage at lower margins than traditional reinsurance, in return for a lower probability of loss to the reinsurer."

"This reinsurance is often multiyear and financially oriented, and can provide a means of financial management beyond that usually provided by traditional reinsurance."

Other definitions highlight profit-sharing features and loss caps, as well as the possibility of refunding some portion of investment income to cedents in describing the mechanics of finite deals. It has sparked concerns that it can be used to mask the true state of a company's financial conditions.

Platinum was subpoenaed for information on such deals by the SEC on Nov. 15, 2004, and subsequently by the New York attorney general. Platinum executives reported that they met with the SEC and provided synopses of 55 transactions (along with a self-evaluation of each of them) in January, but they have not heard back from the SEC yet.

According to Mr. Price, the overall finite market has been slowed by the investigations.

"I think there is dampened enthusiasm in the short term for finite business," he said, pointing in particular to risks, like property catastrophe, "where there's a ready market?on a traditional basis" willing to write business that migrates from the finite market.

On the other hand, Mr. Price said that there still remain risks "where it's not always possible to find a willing writer on a traditional basis," noting that Platinum continued to write several finite accounts in the last few months.

"I think those deals are not likely to go away. I also believe that in recent years those types of deals have gotten considerable scrutiny from senior managements, and so they are much less likely to fall into the category of abusive practices that the SEC and [New York's] attorney general seem to be looking for." He added, however, that companies might put more risk might into future deals "just to be on the safe side."

Mr. Price said that he didn't anticipate any material shift away from the finite segment for Platinum in the year ahead. Based on a review of past contracts written, there was "no class of contracts that we were engaged in before that we would not consider now," he said.

Mr. Morrison offered guidance on 2005 results overall, estimating 2005 net premiums written coming in at $1.6 billion, a combined ratio of 94 for this year, and earnings per share of $3.50. By comparison, earnings per share were $1.81 and $3.09 in 2004 and 2003, respectively.