J.P. Morgan Comments On Platinum Underwriter Holdings Following Q1 Catastrophes

On March 22, 2011, Platinum PTP provided its initial 1Q 2011 net loss estimate for the New Zealand earthquake and Australian floods/Yasi of $135 million and $25 million, respectively. In addition, the company expects its share of the Honshu/Tohoku earthquake to be in the range of 0.25%-0.40% of total industry losses. As a result, J.P Morgan is lowering its 2011-2013 operating EPS estimates by $4.99, $0.45, and $0.40 to a net loss of $1.22 and EPS of $3.60 and $3.10, respectively. JP Morgan's lower EPS estimates reflect higher 1Q 2011 catastrophe losses, lower share repurchases in 2011, and assume no improvement in property reinsurance pricing. J.P. Morgan has a $47 PT and Neutral rating on PTP PTP closed Monday at $36.67