Bermuda-based Platinum Underwriters has confirmed it has stopped writing reinsurance in Australia and New Zealand.

Speaking at an analysts briefing last week, Platinum CEO Michael Price said the company has not been renewing covers from July 1, but it does still have some residual business remaining in the two countries.

The company has reported a $US20.4 million ($18.8 million) loss in the three months to June 30.

“Our performance has been impacted by natural catastrophes in the quarter,” he told analysts. “Therefore, the reduction in our exposure to secondary territories reflects our scaling back of our Australasia exposure.”

Mr Price says the scientific probability of another major earthquake in New Zealand, combined with prediction of a heightened hurricane season in the US, have driven the company to make the decision to pull out of Australia and New Zealand.

He says the local business has earned good rates for the reinsurer, but the risks have become too high.

“We were getting good money for contracts, but we were carrying more risk also,” he said.

“Because the New Zealand risks were becoming higher, this did mean we had to get out of some Australian covers, as the two were linked.”

Mr Price says Platinum will have some exposure if there was another major event in New Zealand, but it is now small.

The third earthquake in Christchurch on June 13 saw Platinum liable for less than $US10 million ($9.2 million) of claims, but some are still being settled so there was no final figure at this stage.

In Platinum’s property and marine business, it wrote $US54.4 million ($50 million) of premiums and earned net premiums of $US91.8 million ($84.7 million).

It faced $US116.5 million ($107.5 million) of net claims which resulted in the division making a $43.9 million ($40.5 million) underwriting loss.

Mr Price says that despite the second-quarter loss, he believed the company is well capitalised to face a heightened US hurricane season.

Platinum’s total assets were $US4.68 billion ($4.3 billion) at June 30, a 1.5% increase on the December 31 figure of $US4.61 billion ($4.2 billion).