A.M. Best Places Rating of Platinum's Reinsurance Subsidiaries Under Review With Negative Implications

Business Wire, Nov 15, 2005

OLDWICK, N.J. -- A.M. Best Co. has placed the financial strength rating (FSR) of A (Excellent) and issuer credit ratings (ICR) of "a" of the reinsurance subsidiaries of Platinum Underwriters Holdings, Ltd. (Platinum) (NYSE:PTP) (Bermuda) under review with negative implications. Concurrently, A.M. Best has placed the ICR of "bbb" of Platinum and all of the group's debt ratings under review with negative implications. (See below for a detailed list of ratings.)

These rating actions follow Platinum's recent announcement that it has recognized $135 million in after tax losses stemming from Hurricane Wilma. The group's lead operating company, Platinum Underwriters Bermuda, Ltd. (Platinum Bermuda), which assumes a significant amount of business from the group's other operating companies, has realized a disproportionate reduction in its capital position as a result of Hurricane Wilma. Intercompany reinsurance arrangements designed to protect Platinum Bermuda's capital were not sufficient to address the frequency of hurricanes experienced in 2005.

A.M. Best will meet with Platinum's management in the near term to review Platinum's plan to strengthen the group capital and to specifically address the capital allocation issues between the group's affiliate companies.

The FSR of A (Excellent) and ICRs of "a" have been placed under review for the following reinsurance subsidiaries of Platinum Underwriters Holdings, Ltd.:

--Platinum Underwriters Reinsurance, Inc.

--Platinum Re (UK) Limited

--Platinum Underwriters Bermuda, Ltd.

The ICR of "bbb" has been placed under review for Platinum Underwriters Holdings, Ltd.

The following debt ratings have been placed under review:

Platinum Underwriters Finance Inc.--

--"bbb" on $137.5 million 6.371% senior notes, due 2007

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

The following indicative ratings assigned to debt securities available under the shelf registration have been placed under review:

Platinum Underwriters Holdings, Ltd.--

--"bbb" on senior unsecured debt

--"bbb-" on subordinated debt

--"bb " on preferred stock

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