A.M. Best Affirms Ratings of Platinum and Its Reinsurance Subsidiaries

Business Wire, Feb 2, 2007

OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating (FSR) of A (Excellent) and the issuer credit ratings (ICR) of "a" of the Platinum Underwriters Group (the group) (Bermuda) and its members. A.M. Best has also affirmed the ICR of "bbb" of Platinum Underwriters Holdings, Ltd. (Platinum) (Bermuda) [NYSE: PTP] and the debt ratings of Platinum Underwriters Finance, Inc. and Platinum. The outlook for all ratings is stable. (See below for a detailed list of companies and ratings.)

These affirmations reflect the group's excellent capitalization, which includes strong earnings in 2006 and proceeds from various capital initiatives undertaken during 2005. Earnings in 2006 benefited from the hardened U.S. property market conditions, as well as the benefits of a benign catastrophe year. The capital initiatives in 2005 raised approximately $700 million of net new capital in the form of senior notes, preferred shares and common shares. These capital raising events further strengthened the group's overall capital position and include a significant capital contribution to Platinum's subsidiary, Platinum Underwriters Bermuda, Ltd

A.M. Best factored the financial leverage and fixed charged coverage as part of its analysis and 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, both within acceptable ranges to support its FSRs, ICRs and debt ratings.

The FSR of A (Excellent) and ICRs of "a" have been affirmed for Platinum Underwriters Group and its following members:

* Platinum Underwriters Reinsurance, Inc.

* Platinum Re (UK) Limited

* Platinum Underwriters Bermuda, Ltd.

        The ICR of "bbb" has been affirmed for Platinum Underwriters
        Holdings, Ltd.

        The following debt ratings have been affirmed:

        Platinum Underwriters Holdings, Ltd.--
        -- "bb " on $173.4 million 6.0% series A mandatory convertible
        preferred shares, due 2009

        Platinum Underwriters Finance, Inc.--
        -- "bbb" on $42.8 million 6.371% senior notes, due 2007
        -- "bbb" on $250 million 7.50% senior notes, due 2017

        The following indicative ratings available under the shelf
        registration have been affirmed:

        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.>

Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors. For more information, visit www.ambest.com.