Platinum Underwriters Holdings (FRA:PMU) Interest Coverage : 10.05 (As of Dec. 2014)

View and export this data going back to . Start your Free Trial

What is Platinum Underwriters Holdings Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's EBIT by its Interest Expense. Platinum Underwriters Holdings's EBIT for the three months ended in Dec. 2014 was €39.1 Mil. Platinum Underwriters Holdings's Interest Expense for the three months ended in Dec. 2014 was €-3.9 Mil. Platinum Underwriters Holdings's interest coverage for the quarter that ended in Dec. 2014 was 10.05. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Platinum Underwriters Holdings's Interest Coverage or its related term are showing as below:

FRA:PMU' s Interest Coverage Range Over the Past 10 Years
Min: 0 Med: 0 Max: 10.44
Current: 10.44

FRA:PMU's Interest Coverage is not ranked
in the Insurance industry.
Industry Median: 13.52 vs FRA:PMU: 10.44

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Platinum Underwriters Holdings Interest Coverage Historical Data

The historical data trend for Platinum Underwriters Holdings's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Platinum Underwriters Holdings Interest Coverage Chart

Platinum Underwriters Holdings Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Interest Coverage

Get a 7-Day Free Trial

14.62

19.44

14.49

10.50

Platinum Underwriters Holdings Quarterly Data
	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14
Interest Coverage	Get a 7-Day Free Trial															13.34	15.21	8.93	7.82	10.05

Competitive Comparison of Platinum Underwriters Holdings's Interest Coverage

For the Insurance - Reinsurance subindustry, Platinum Underwriters Holdings's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Platinum Underwriters Holdings's Interest Coverage Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Platinum Underwriters Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Platinum Underwriters Holdings's Interest Coverage falls into.

Platinum Underwriters Holdings Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and EBIT is positive, then

Interest Coverage

-1

EBIT

Interest Expense

Else if Interest Expense is negative and EBIT is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Platinum Underwriters Holdings's Interest Coverage for the fiscal year that ended in Dec. 2014 is calculated as

Here, for the fiscal year that ended in Dec. 2014, Platinum Underwriters Holdings's Interest Expense was €-15.5 Mil. Its EBIT was €163.1 Mil. And its Long-Term Debt & Capital Lease Obligation was €202.8 Mil.

Interest Coverage	=	-1	*	EBIT (A: Dec. 2014 )	/	Interest Expense (A: Dec. 2014 )
	=	-1	*	163.138	/	-15.535
	=	10.50

Platinum Underwriters Holdings's Interest Coverage for the quarter that ended in Dec. 2014 is calculated as

Here, for the three months ended in Dec. 2014, Platinum Underwriters Holdings's Interest Expense was €-3.9 Mil. Its EBIT was €39.1 Mil. And its Long-Term Debt & Capital Lease Obligation was €202.8 Mil.

Interest Coverage	=	-1	*	EBIT (Q: Dec. 2014 )	/	Interest Expense (Q: Dec. 2014 )
	=	-1	*	39.072	/	-3.886
	=	10.05

The higher the ratio, the stronger the company's Financial Strength is.

Platinum Underwriters Holdings (FRA:PMU) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Platinum Underwriters Holdings Interest Coverage Related Terms

Thank you for viewing the detailed overview of Platinum Underwriters Holdings's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Platinum Underwriters Holdings (FRA:PMU) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Platinum Underwriters Holdings Ltd (FRA:PMU) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.platinumre.com

Platinum Underwriters Holdings, Ltd. was incorporated on April 19, 2002. It operates as a holding company domiciled in Bermuda. Through its operating subsidiaries, it provides property and marine, casualty and finite risk reinsurance coverages, through reinsurance intermediaries, to a diverse clientele of commercial and personal lines insurers and select reinsurers on a basis. The Company operates through two licensed reinsurance subsidiaries, Platinum Underwriters Bermuda, Ltd., a Bermuda reinsurance company and wholly owned subsidiary of Platinum Holdings, and Platinum Underwriters Reinsurance, Inc., a U.S. reinsurance company and a wholly owned subsidiary of Platinum Underwriters Finance, Inc. The Company operates in Property and Marine, Casualty and Finite Risk segments. It provides reinsurance coverage for damage to property and crops. It provides reinsurance coverage for marine and offshore energy insurance programs. Coverages reinsured include hull damage, protection and indemnity, cargo damage, satellite damage and general marine liability. Within Marine, it also writes commercial and general aviation reinsurance. Casualty reinsurance protects a ceding company against financial loss arising out of the obligation to others for loss or damage to persons or property. The Company's Casualty operating segment mainly includes reinsurance contracts that cover umbrella liability, general and product liability, professional liability, workers' compensation, casualty clash, automobile liability, surety, trade credit, political risk and accident and health. Finite reinsurance includes mainly structured reinsurance contracts with ceding companies whose needs might not be met efficiently through traditional reinsurance products. Reinsurance contracts classified as finite are typically structured to include loss limitation or loss mitigation features. It markets its reinsurance products mainly through non-exclusive relationships with reinsurance brokers. The property and casualty reinsurance industry is competitive. It competes with Arch Capital Group Ltd., Axis Capital Holdings Limited, Endurance Specialty Holdings Ltd., Everest Re Group, Ltd., Montpelier Re Holdings Ltd., PartnerRe Ltd., RenaissanceRe Holdings Ltd. and Transatlantic Holdings, Inc. The business of reinsurance is regulated in several countries, although the degree and type of regulation. Reinsurers are generally subject to less direct regulation than main insurers.

Platinum Underwriters Holdings (FRA:PMU) Headlines

No Headlines