A.M. Best Assigns Initial Ratings to Platinum Underwriters Group.

Business Editors

OLDWICK, N.J.--(BUSINESS WIRE)--Nov. 4, 2002

A.M. Best Co. has assigned an initial financial strength rating of A (Excellent) to the reinsurance subsidiaries of the newly formed Platinum Underwriters Holdings Ltd. (Platinum) (NYSE:PTP) (Bermuda) and assigned an initial rating of "bbb+" to the equity security units included with this initial public offering.

Future obligations by the investors to acquire Platinum's common stock under these equity security units are secured by senior notes issued by Platinum Underwriters Finance, Inc. and are guaranteed by Platinum. The outlook for these ratings is stable.

Platinum, formed to assume the reinsurance operations of St. Paul Companies (St. Paul, MN) has just completed public securities offerings and private placements generating over $1 billion in capital. The creation of Platinum was based upon St. Paul's strategic decision to separate its insurance and reinsurance businesses following substantial losses incurred from the September 11 events.

Platinum will operate as an independent, publicly traded company. Its business includes ongoing reinsurance operations of St. Paul--which maintains 15% ownership in the newly formed company. Also taking an interest in the company is RenaissanceRe Holdings Ltd. (NYSE: RNR), which has acquired 9.9% ownership. St. Paul will transfer substantially all of its existing reinsurance business to Platinum for contracts effective January 1, 2002, and subsequent contracts. St. Paul will retain responsibility for all liabilities related to business underwritten prior to 2002 including any developments stemming from the September 11 attacks. Prior to this transaction, St. Paul had been actively engaged in re-underwriting its business to improve profitability through obtaining better terms and conditions and non-renewing under performing contracts.

These initial ratings reflect Platinum's existing books of business and established distribution relationships. These ratings also acknowledge Platinum's strong capitalization and the benefits it derives from its association with St. Paul. Platinum is retaining key senior management personnel from St. Paul's reinsurance operations and an existing infrastructure including back office operations, thereby providing for continuity of operations.

Platinum is led by Steven H. Newman, chairman, who has over 40 years of insurance industry experience, which includes serving as chairman, chief executive officer and president of Underwriters Re until its acquisition by Swiss Re in May 2000.

These strengths are partially offset by increased competition from both established and newly created companies that have recently entered the reinsurance marketplace. This competition could potentially reduce expected returns if pricing increases--resulting from the current favorable market conditions--cannot be sustained. Likewise, there is execution risk as Platinum attempts to successfully transition business from St. Paul and maintain its desired portfolio of business. A.M. Best will closely monitor Platinum's operations to ensure targeted results are achieved and operational and financial leverage ratios are well within A.M. Best's expectations for the ratings assigned.

The initial financial strength rating of A (Excellent) has been assigned to the following core operating subsidiaries of Platinum Underwriters Holdings, Ltd.:

- Platinum Underwriters Reinsurance, Inc.

- Platinum Re (UK) Limited

- Platinum Underwriters Bermuda, Ltd.

The following initial debt rating is assigned:

Platinum Underwriters Finance, Inc.--

-- "bbb+" rating on equity security units

A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com.