A.M. Best Affirms Ratings of Platinum and Its Reinsurance Subsidiaries; Removes All Ratings From Under Review

Business Wire, May 26, 2005

OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and issuer credit ratings (ICR) of "a" of the reinsurance subsidiaries of Platinum Underwriters Holdings, Ltd. (Platinum) (NYSE: PTP) (Bermuda). A.M. Best has also assigned a debt rating of "bbb" to $250 million of senior notes just issued by Platinum. Concurrently, A.M. Best has affirmed the ICR of "bbb" of Platinum and all its existing debt ratings. All ratings have been removed from under review and assigned a stable outlook.

These rating actions follow Platinum's capital raising initiative, which resulted in the issuance of the $250 million 7.50% senior unsecured notes that are due in 2017. The proceeds from these notes improve the group's overall capital position and, in particular, include a significant capital contribution to Platinum's Bermuda subsidiary, Platinum Underwriters Bermuda Ltd., whose risk-adjusted capital had declined significantly as a result of the southeast windstorms in 2004.

A.M. Best considered the financial leverage and fixed charged coverage as part of its analysis. A.M. Best expects Platinum to maintain its level of debt to capital below 30% and to maintain a fixed charge coverage in the mid to upper single digit range.

The revised outlook reflects A.M. Best's view that Platinum has improved its risk-adjusted capital position to a level supportive of its current financial strength ratings. A.M. Best will monitor Platinum to ensure that as rates continue to soften in its core markets, the company maintains underwriting discipline and executes its business strategy.

The financial strength rating of A (Excellent) and the issuer credit ratings of "a" have been affirmed for the following operating reinsurance subsidiaries of Platinum Underwriters Holdings, Ltd.:

--Platinum Underwriters Reinsurance, Inc.

--Platinum Re (UK) Limited

--Platinum Underwriters Bermuda, Ltd.

The issuer credit rating of "bbb" has been affirmed for Platinum Underwriters Holdings, Ltd.

The following debt rating has been assigned:

Platinum Underwriters Finance, Inc.--

--"bbb" on $250 million 7.50% senior unsecured notes, due 2017

The following debt rating has been affirmed with a stable outlook:

Platinum Underwriters Finance, Inc.--

--"bbb" on $137.5 million in equity security units, due 2007

The following indicative ratings assigned to securities available under shelf registration have been affirmed:

Platinum Underwriters Holdings, Ltd.--

--"bbb" on senior unsecured debt

--"bbb-" on subordinated debt

--"bb " on preferred shares

For Best's Debt Ratings, all other Best's Ratings, an overview of the rating process and rating methodologies, please visit http://www.ambest.com/ratings.> For current Best's Ratings, independent data and analysis on more than 330 reinsurance companies, please visit http://www.ambest.com/reinsurance/.> 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 http://www.ambest.com.