A.M. Best Affirms Ratings of Platinum Underwriters Holdings, Ltd. and Its Reinsurance Subsidiaries

Business Wire, Feb 13, 2008

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 Platinum Underwriters Group (the group) (Bermuda) and its members. A.M. Best also has affirmed the ICR of "bbb" of Platinum Underwriters Holdings, Ltd. (Platinum) (Bermuda) (NYSE: PTP) and the debt ratings of Platinum and Platinum Underwriters Finance, Inc. The outlook for all ratings is stable. (See below for a detailed list of the companies and ratings.)

The ratings reflect the group's very strong capitalization, strong operating results and established business position as a global, multi-line provider of reinsurance coverages. The ratings also reflect the group's good financial flexibility, solid liquidity and proven ability to access the capital markets.

Somewhat offsetting these strengths are the current challenges occurring in the global reinsurance market including rate softening and increased competition. The outlook reflects Platinum's strong risk management capabilities and well seasoned management team.

The group has generated very strong underwriting results over the most recent five-year period. From an earnings perspective, investment income continues to contribute to the bottom line due to the group's growing invested asset base and sound operating cash flow measures.

Results in 2006 and 2007 recognize moderate catastrophe losses and favorable loss cost trends related to the past several accident years. However, A.M. Best believes that operating margins could face pressure given the degree of rate softening currently experienced in key market segments.

Platinum maintains conservative financial leverage measures as total debt to total capital approximated 11% at year-end 2007 with strong interest coverage measures.

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 $250 million 7.50% senior unsecured 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

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.