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                                                                   EXHIBIT 10.16

                            FORM OF OPTION AGREEMENT

NONE OF THE ST. PAUL OWNERSHIP OPTION, THE ST. PAUL PARTICIPATION OPTION (EACH
AS DEFINED BELOW) AND THE COMMON SHARES DELIVERABLE UPON EXERCISE OF EITHER THE
ST. PAUL OWNERSHIP OPTION OR THE ST. PAUL PARTICIPATION OPTION, HAVE BEEN
REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933. NEITHER OPTION, NOR ANY
INTEREST THEREIN, NOR ANY COMMON SHARES DELIVERABLE UPON EXERCISE THEREOF MAY BE
ASSIGNED OR OTHERWISE TRANSFERRED, DISPOSED OF OR ENCUMBERED EXCEPT FOLLOWING
RECEIPT BY PLATINUM UNDERWRITERS HOLDINGS, LTD. (THE "COMPANY") OF EVIDENCE
SATISFACTORY TO IT, WHICH MAY INCLUDE AN OPINION OF UNITED STATES COUNSEL, THAT
SUCH TRANSFER DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT OR STATE
SECURITIES LAWS AND UPON OBTAINMENT OF ANY REQUIRED GOVERNMENT APPROVALS.
TRANSFER OF EITHER THE ST. PAUL OWNERSHIP OPTION OR THE ST. PAUL PARTICIPATION
OPTION, OR ANY INTEREST THEREIN, NOR ANY COMMON SHARES DELIVERABLE UPON EXERCISE
THEREOF, MAY BE DISAPPROVED BY THE BOARD OF DIRECTORS OF THE COMPANY IF, IN
THEIR REASONABLE JUDGMENT, THEY HAVE REASON TO BELIEVE THAT SUCH TRANSFER MAY
EXPOSE THE COMPANY, ANY SUBSIDIARY THEREOF, ANY SHAREHOLDER OR ANY PERSON CEDING
INSURANCE TO THE COMPANY OR ANY SUCH SUBSIDIARY TO ADVERSE TAX OR REGULATORY
TREATMENT IN ANY JURISDICTION. COMMON SHARES OBTAINED UPON EXERCISE OF THIS
OPTION AGREEMENT ARE SUBJECT TO SUBSTANTIAL RESTRICTIONS ON TRANSFER AS SET
FORTH IN SECTION 5(C) OF THIS OPTION AGREEMENT.

     This OPTION AGREEMENT is made this [ ] day of June 2002 between PLATINUM
UNDERWRITERS HOLDINGS, LTD., a company organized under the laws of the Islands
of Bermuda (the "Company"), and THE ST. PAUL COMPANIES, INC., a company
incorporated under the laws of the State of Minnesota in the United States of
America ("St. Paul").

                                R E C I T A L S :

     WHEREAS, the Company is contemplating an initial public offering (the
"Public Offering") of its common shares of par value U.S. $0.01 per share (the
"Common Shares");

     WHEREAS, St. Paul and the Company have entered into a Formation and
Separation Agreement, dated as of June [ ], 2002 (the "Formation and Separation
Agreement") in which St. Paul and the Company have set forth certain terms of
their continuing relationship following the Public Offering; and

     WHEREAS, as contemplated by the Formation and Separation Agreement,
contingent upon the consummation of the Public Offering, St. Paul will
contribute certain assets to the Company, in consideration for which the Company
intends to issue to St. Paul or its nominees (i) pursuant to a private
placement, a number of Common Shares determined as set forth in the Formation
and Separation Agreement (the "St. Paul Investment"), (ii) the St. Paul
Ownership

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Option, as defined below, under the circumstances specified in this Agreement;
and (iii) the St. Paul Participation Option, as defined below, under the
circumstances specified in this Agreement.

     NOW, THEREFORE, in furtherance of the transactions contemplated by the
Formation and Separation Agreement, and in consideration of the mutual promises,
covenants and agreements set forth therein and herein, the receipt and
sufficiency of which are acknowledged, the parties hereby agree as follows:

1.   (a)  In the event St. Paul is issued less than 13,262,300 Common Shares
(or, if the underwriters exercise their over-allotment option in the Public
Offering in whole or part, the sum of (A) 13,262,300 plus (B) that number of
Common Shares that is equal to 1,989,300 MULTIPLIED BY a fraction, the numerator
of which is the number of Common Shares that the underwriters acquire pursuant
to their over-allotment option and the denominator of which is 6,000,000) in the
St. Paul Investment, the Company grants St. Paul an option (the "St. Paul
Ownership Option") to purchase such number of Common Shares (the "St. Paul
Ownership Option Shares") as is necessary to increase St. Paul's actual
ownership interest in the Common Shares following the completion of the Public
Offering and the St. Paul Investment to 13,262,300 Common Shares (or, if the
underwriters exercise their over-allotment option in the Public Offering in
whole or part, the sum of (A) 13,262,300 plus (B) that number of Common Shares
that is equal to 1,989,300 multiplied by a fraction, the numerator of which is
the number of Common Shares that the underwriters acquire pursuant to their
over-allotment option and the denominator of which is 6,000,000).

     (b)  The St. Paul Ownership Option is exercisable, at an exercise price per
Common Share equal to the initial public offering price per Common Share (the
"St. Paul Ownership Option Price"), in whole or in part at any time prior to the
tenth anniversary of the completion of the Public Offering (the "St. Paul
Ownership Option Exercise Period").

     (c)  The Company grants St. Paul an option (the "St. Paul Participation
Option"; with the St. Paul Ownership Option, each, an "Option") to purchase up
to 2 million Common Shares (the "St. Paul Participation Option Shares"; with the
St. Paul Ownership Option Shares, the "Option Shares").

     (d)  The St. Paul Participation Option is exercisable at an exercise price
per common share of 130% of the initial public offering price per Common Share
(the "St. Paul Participation Option Price"; with the St. Paul Ownership Option
Price, each, an "Option Price") in whole or in part at any time after the second
anniversary of the completion of the Public Offering and prior to the tenth
anniversary (the "St. Paul Participation Option Exercise Period"; with the St.
Paul Ownership Option Exercise Period, each, an "Exercise Period").

     (e)  An "Exercise Date" is any day during an Exercise Period, other than a
Saturday, Sunday or other day on which banking institutions in New York City or
Bermuda are authorized or obligated by law or executive order to close (a
"Business Day"). An Option may be exercised as provided herein until 12:01 A.M.,
New York City time, on the first day after the expiration of the Exercise
Period.

     (f)  Notwithstanding anything to the contrary in this Agreement, St. Paul's
ownership interest in the Common Shares may not at any time and under any
circumstances be equal to or exceed that percentage of the Common Shares
outstanding that would cause St. Paul to be a

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"United States 25% Shareholder" as defined in the Company's bye-laws as in
effect as of the completion of the Public Offering. It is agreed and understood
that, prior to any exercise of the St. Paul Ownership Option or the St. Paul
Participation Option, as the case may be, St. Paul shall, if necessary, dispose
of such number of Common Shares so that, immediately after any exercise of
either Option, St. Paul will not be a "United States 25% Shareholder".

     (g)  Option Shares upon issue will rank equally in all respects with the
other Common Shares of the Company, but in no case will any Option Shares carry
any option or other right to subscribe for further additional shares.

     (h)  St. Paul is not, solely by virtue hereof, entitled to any rights of a
shareholder in the Company either at law or in equity.

     (i)  Upon any merger, amalgamation, consolidation, scheme of arrangement or
similar transaction involving the Company and any third party that is not a
subsidiary of the Company, or any sale of all or substantially all the assets of
the Company to any third party that is not a subsidiary of the Company (each, a
"Transaction") in which all holders of Common Shares become entitled to receive,
in respect of such shares, any capital stock, rights to acquire capital stock or
other securities of the Company or of any other person, any cash or any other
property, or any combination of the foregoing (collectively, "Transaction
Consideration"), the Options shall entitle St. Paul to receive all Transaction
Consideration that St. Paul would have been entitled to if it had exercised the
Options in full immediately prior to the Transaction (to the extent it remains
unexercised and without regard to the limitations in Section 1(f) hereof), in
each case upon payment by St. Paul of the Option Price as in effect immediately
prior to such time. In determining the kind and amount of Transaction
Consideration that St. Paul would be entitled to receive in respect of any
Transaction pursuant to this Section 1(i), St. Paul shall be entitled to
exercise any rights of election as to the kinds and amounts of consideration
receivable in such Transaction that are provided to holders of Common Shares in
such Transactions. Any adjustment in respect of a Transaction pursuant to this
Section 1(i) shall become effective immediately after the effective time of such
Transaction, retroactive to any record date therefor. The Company shall take
such action as is necessary to ensure that St. Paul shall be entitled to receive
Transaction Consideration upon the terms and conditions provided in this Section
1(i). Notwithstanding the foregoing, if an adjustment is made pursuant to this
Section 1(i) in respect of a Transaction that involves a Change of Control (as
defined below), St. Paul shall be entitled to exercise the Options pursuant to
this Section 1(i) without regard to Section 1(f) hereof. A Transaction is deemed
to involved a "Change of Control" if the beneficial owners of the outstanding
Common Shares immediately prior to the effective time of such Transaction are
not the beneficial owners of a majority of the total voting power of the
surviving or acquiring entity in the Transaction, as the case may be,
immediately after such effective time.

2.   (a)  To exercise an Option in accordance with Section 1(b) or Section 1(d)
hereof, St. Paul shall provide written notice to the Company of its intention to
exercise all or a portion of such Option at least ten (10) Business Days prior
to the intended Exercise Date (such notice must indicate the number of Option
Shares St. Paul intends to purchase upon exercise of such Option and must be in
writing signed by or on behalf of St. Paul and delivered or sent by registered
post to the Company at its registered office).

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     (b)  The Company shall issue and allot Option Shares upon exercise of an
Option and payment of the total price payable therefor.

     (c)  Concurrently with the issuance of the Option Shares pursuant to
Section 2(b) above, St. Paul shall pay the Option Price for any Option exercised
hereunder by wire transfer of immediately available funds to an account
specified at least five (5) Business Days in advance by the Company; such Option
Price being an amount in U.S. dollars equal to the product of (i) the number of
St. Paul Ownership Option Shares or St. Paul Participation Option Shares, as the
case may be, that St. Paul intends to purchase pursuant to any exercise of an
Option and (ii) the St. Paul Ownership Option Price or the St. Participation
Option Price, as the case may be.

     (d)  Notwithstanding anything to the contrary in this Agreement, no Option
may be exercised under this Agreement unless the required regulatory approvals
set forth in Section 5 shall have been obtained.

3.   (a)  In case the Company at any time after the date that the number of
Common Shares issuable pursuant to the Public Offering and the St. Paul
Investment has been determined:

          (A)   declares or pays a dividend or makes any other distribution with
     respect to its capital stock in Common Shares such that the number of
     Common Shares outstanding is increased,

          (B)   subdivides or splits-up its outstanding Common Shares, such that
     the number of Common Shares outstanding is increased,

          (C)   combines its outstanding Common Shares into a smaller number of
     Common Shares or

          (D)   effects any reclassification of the Common Shares other than a
     change in par value (including any such reclassification in connection with
     an amalgamation or merger in which the Company is the surviving entity or a
     reincorporation of the Company),

the number of Common Shares purchasable upon exercise of an Option shall be
proportionately adjusted so that St. Paul will be entitled to receive the kind
and number of Common Shares or other securities of the Company which it would
have been entitled to receive after the happening of any of the events described
above if such Option had been exercised immediately prior to the happening of
such event or any record date with respect thereto. An adjustment made pursuant
to this paragraph 3(a) shall become effective immediately after the effective
date of such event retroactive to the record date, if any, for such event.

     (b)  In case the Company issues rights, options or warrants to all holders
of its outstanding Common Shares entitling them to subscribe for or purchase
Common Shares at a price per share which is lower at the record date mentioned
below than the then Current Market Value (as defined in Section 3(d)), the
number of Option Shares that St. Paul may purchase thereafter upon the exercise
of an Option will be determined by multiplying the number of Option Shares
theretofore purchasable upon exercise of such Option by a fraction, of which the
numerator is the sum of (A) the number of Common Shares outstanding on the
record date for determining shareholders entitled to receive such rights,
options or warrants plus (B) the number of additional

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Common Shares offered for subscription or purchase, and of which the denominator
shall be the sum of (A) the number of Common Shares outstanding on the record
date for determining shareholders entitled to receive such rights, options or
warrants plus (B) the number of shares which the aggregate offering price of the
total number of Common Shares so offered would purchase at the Current Market
Value (as defined below in Section 3(d)) per share of Common Shares at such
record date. Such adjustment shall be made whenever such rights, options or
warrants are issued, and shall become effective immediately after the record
date for the determination of shareholders entitled to receive such rights,
options or warrants.

     (c)  In the event the Company distributes to all holders of its Common
Shares any of the capital stock of any of its subsidiaries (each, a
"Subsidiary"), the Options will upon such distribution be deemed to be options
to purchase the kind and number of shares of the capital stock of the Subsidiary
which St. Paul would have been entitled to receive after such distribution had
the Options been exercised immediately prior to such distribution or any record
date with respect thereto. The roll-over of the Options into options to purchase
shares of capital stock of the applicable Subsidiary pursuant to this Section
3(c) will become effective immediately after the effective date of the
distribution of shares of the capital stock of the applicable Subsidiary to
shareholders of the Company described above.

     (d)  For the purpose of any computation under Section 3(b), the "Current
Market Value" of such Common Shares on a specified date is deemed to be the
average of the daily closing prices per share for the ten consecutive Trading
Days (as defined below) ending on the day before the applicable record date.
"Trading Day" means each Monday, Tuesday, Wednesday, Thursday and Friday, other
than any day on which the Common Shares are not traded on the applicable
securities exchange or on the applicable securities market. The closing price
for each day is the reported last sale price regular way or, in case no such
reported sale takes place on such day, the average of the reported closing bid
and asked prices regular way, in either case on the New York Stock Exchange or,
if the Common Shares are not listed or admitted to trading on such Exchange, on
the principal national securities exchange on which the Common Shares are listed
or admitted to trading or, if not listed or admitted to trading on any national
securities exchange, on the NASDAQ National Market or, if the Common Shares are
not listed or admitted to trading on any national securities exchange or quoted
on the NASDAQ National Market, the average of the closing bid and asked prices
in the over-the-counter market as furnished by any New York Stock Exchange
member firm reasonably selected from time to time by the Board of Directors of
the Company for that purpose.

     (e)  Whenever the number of Common Shares purchasable by St. Paul upon the
exercise of an Option is adjusted, as herein provided, the Option Price be
adjusted by multiplying such Option Price immediately prior to such adjustment
by a fraction, of which the numerator shall be the number of Option Shares
purchasable upon the exercise of such Option immediately prior to such
adjustment, and of which the denominator shall be the number of Option Shares
purchasable immediately thereafter.

     (f)  No adjustment in the number of Option Shares purchasable upon the
exercise of an Option need be made under Section 3(b) and (c) if the Company
issues or distributes, pursuant to this Agreement, to St. Paul the shares,
rights, options, warrants, securities or assets referred to in those paragraphs
which St. Paul would have been entitled to receive had such Option been

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exercised prior to the happening of such event or the record date with respect
thereto. No adjustment need be made for a change in the par value of the Option
Shares.

     (g)  For the purpose of this Section 3, the term "Common Shares" shall mean
(i) the class of stock consisting of the Common Shares of the Company, or (ii)
any other class of stock resulting from successive changes or reclassification
of such shares other than consisting solely of changes in par value. In the
event that at any time, as a result of an adjustment made pursuant to Section 3
(a) above, St. Paul will become entitled to receive any securities of the
Company other than Common Shares, thereafter the number of such other securities
so receivable upon exercise of an Option and the Option Price of such securities
will be subject to adjustment from time to time in a manner and on terms as
nearly equivalent as practicable to the provisions with respect to the Option
Shares contained in paragraphs (a) through (f), inclusive, above; PROVIDED,
HOWEVER, that the Option Price will at no time be less than the aggregate par
value of the Common Shares or other securities of the Company obtainable upon
exercise of such Option.

     (h)  In the case of Section 3(b), upon the expiration of any rights,
options or warrants or if any thereof shall not have been exercised, the Option
Price and the number of Common Shares purchasable upon the exercise of an Option
shall, upon such expiration, be readjusted and shall thereafter be such as they
would have been had they been originally adjusted (or had the original
adjustment not been required, as the case may be) as if (A) the only Common
Shares so issued were the Common Shares, if any, actually issued or sold upon
the exercise of such rights, options or warrants and (B) such Common Shares, if
any, were issued or sold for the consideration actually received by the Company
upon such exercise plus the aggregate consideration, if any, actually received
by the Company for the issuance, sale or grant of all such rights, options or
warrants whether or not exercised; PROVIDED, FURTHER, that no such readjustment
may have the effect of increasing the Option Price or decreasing the number of
Common Shares purchasable upon the exercise of such Option by an amount in
excess of the amount of the adjustment initially made in respect to the
issuance, sale or grant or such rights, options or warrants.

     (i)  In the case of Section 3(b), on any change in the number of Common
Shares deliverable upon exercise of any such rights, options or warrants, other
than a change resulting from the antidilution provisions hereof, the number of
Option Shares thereafter purchasable upon the exercise of an Option shall
forthwith be readjusted to such number as would have been obtained had the
adjustment made upon the issuance of such rights, options or warrants not
converted prior to such change (or rights, options or warrants related to such
securities not converted prior to such change) been made upon the basis of such
change.

     (j)  The Company may at its option, at any time during the term of the
Options, reduce the then current Option Price to any amount and for any period
of time deemed appropriate by the Board of Directors of the Company, including
such reductions in the exercise price as the Company considers to be advisable
in order that any event treated for Federal income tax purposes as a dividend of
stock or stock rights shall not be taxable to the recipients.

4.   The Company undertakes to use commercially reasonable efforts to increase
its authorized share capital prior to the dates upon which the Options shall
become exercisable to a level sufficient to satisfy any exercise of the Options.

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5.   (a)  For so long as either of the Options is exercisable hereunder,
each party hereto shall (i) use its commercially reasonable efforts to obtain
all authorizations, consents, orders and approvals of all governmental
authorities and officials that may be or become necessary for the performance of
its obligations pursuant to this Agreement and (ii) cooperate reasonably with
the other party in promptly seeking to obtain all such authorizations, consents,
orders and approvals. The parties hereto agree to cooperate, complete and file
any joint applications for any authorizations from any governmental authorities
reasonably necessary or desirable to effectuate the transactions contemplated by
this Agreement. The parties hereto agree that they will keep each other apprised
of the status of matters relating to the exercise of either of the Options,
including promptly furnishing the other with copies of notices or other
communications received by the Company or St. Paul, from all third parties and
governmental authorities with respect to the Options.

     (b)  For so long as either of the Options is exercisable, the Company
and St. Paul agree to promptly prepare and file, if necessary, any filing under
the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the "HSR
ACT") with the Federal Trade Commission (the "FTC") and the Antitrust Division
of the Department of Justice (the "DOJ") in order to enable St. Paul to exercise
such Options pursuant to this Agreement. Each party hereby covenants to
cooperate with the other such party to the extent reasonably necessary to assist
in making reasonable supplemental presentations to the FTC or the DOJ, and, if
requested by the FTC or the DOJ, to promptly amend or furnish additional
information thereunder.

     (c)  Any reasonable out-of-pocket costs and expenses arising in connection
with actions taken pursuant to this Section 5 shall be borne by St. Paul.

6.   (a)  The Options and the Option Shares may not be assigned or otherwise
transferred, disposed of or encumbered by St. Paul (or any subsequent
transferee) in whole or in part except as provided in this Section 6.

     (b)  In the event of an amalgamation of St. Paul with or merger of St. Paul
into another person, or a sale, transfer or lease to another person (each such
person, a "Successor Person") of all or substantially all the assets of St.
Paul, the Options may be transferred to a person which is a shareholder, partner
or other affiliated person (directly or indirectly) of such Successor Person.

     (c)  On and after the date which is the second anniversary of the closing
date of the Public Offering, St. Paul may transfer the Options or the Option
Shares, in whole or in part, in one or more private transaction(s) to up to
three institutional investors; PROVIDED, HOWEVER, that any proposed transfer is
conditioned upon

          (i)   receipt by the Company of evidence satisfactory to it, which may
     include an opinion of United States counsel that such transfer would not
     require registration under the Securities Act or state securities laws and
     upon the obtainment of any required government approvals (which approvals
     the Company agrees to use commercially reasonable efforts to assist in
     obtaining); and

          (ii)  the proposed transferee executing and delivering instruments
     reasonably acceptable to the Company acknowledging

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                (A)  that the Options and the Option Shares have not been
          registered under the Securities Act and, accordingly, the transferee
          may not offer, sell, assign, pledge or otherwise transfer the Options
          or any Option Shares except pursuant to an effective registration
          statement under the Securities Act covering such Option Shares or
          pursuant to an available exemption from the registration requirements
          of the Securities Act and in compliance with all applicable state
          securities laws;

                (B)  that the Company is entitled to decline to register any
          transfer of Option Shares, and any transfer of Options and Option
          Shares shall be void, unless (i) such transfer is made pursuant to and
          in accordance with Rule 144 (PROVIDED that the Company (or its
          designated agent for such purpose) may request a certificate
          satisfactory to it of compliance by the transferor with the
          requirements of Rule 144), (ii) such transfer is made pursuant to
          another available exemption from the registration requirements of the
          Securities Act (PROVIDED that, if not already a party hereto, the
          intended transferee agrees to abide by the provisions of this Section
          6(c)(ii), and PROVIDED, FURTHER, that, if the Company requests, the
          transferor first provides the Company (or such agent) with evidence
          satisfactory to it, which may include an opinion of U.S. counsel
          satisfactory to the Company, to the effect that such transfer is made
          pursuant to another available exemption from the registration
          requirements of the Securities Act), (iii) such transfer is made
          pursuant to an effective registration statement under the Securities
          Act covering the Option Shares being transferred, including a
          registration statement filed pursuant to the Registration Rights
          Agreement and in all cases pursuant to this clause (B) such transfer
          is in compliance with all applicable state securities laws (the
          Company being entitled to waive or modify the foregoing transfer
          requirements, generally or in any particular case, to the extent that
          it determines, on advice of U.S. counsel, that compliance with such
          requirements is not necessary to ensure compliance with the Securities
          Act or any applicable state securities laws, or such modification is
          necessary to ensure compliance with the Securities Act or any
          applicable state securities laws, as the case may be) and (iv) such
          transferee agrees to be bound by the provisions of this Agreement;

                (C)  that, except as provided below, no Option Share shall be
          held in book-entry form, and each certificate representing an Option
          Share shall be evidenced by a certificate bearing a restrictive legend
          (the "Legend") substantially in the form set forth below:

          THE COMMON SHARES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED
          UNDER THE U.S. SECURITIES ACT OF 1933 (THE "SECURITIES ACT")
          AND MAY NOT BE OFFERED, SOLD, ASSIGNED, PLEDGED OR OTHERWISE
          TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
          STATEMENT UNDER THE SECURITIES ACT OR AN AVAILABLE EXEMPTION
          FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND
          COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS. SUCH
          SHARES MAY NOT BE HELD IN BOOK-ENTRY FORM. SUCH SHARES ARE
          ALSO SUBJECT TO RESTRICTIONS ON TRANSFER SET FORTH IN THE
          OPTION

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          AGREEMENT, DATED AS OF JUNE [ ], 2002, BETWEEN THE ST. PAUL
          COMPANIES, INC. AND PLATINUM UNDERWRITERS HOLDINGS, LTD.
          (THE "COMPANY"), WHICH MAY REQUIRE, AMONG OTHER THINGS, THE
          PRIOR RECEIPT BY THE COMPANY FROM THE TRANSFEROR OR THE
          TRANSFEREE OF EVIDENCE SATISFACTORY TO IT, WHICH MAY INCLUDE
          AN OPINION OF U.S. COUNSEL OR UNDERTAKINGS TO BE BOUND BY
          SUCH AGREEMENT. SUCH SHARES ARE ALSO SUBJECT TO RESTRICTIONS
          IN THE BYE-LAWS OF THE COMPANY, INCLUDING RESTRICTIONS ON
          TRANSFER AND VOTING INTENDED TO ENSURE THAT NO PERSON
          BECOMES OR IS DEEMED TO BECOME A 10% SHAREHOLDER OF THE
          COMPANY (AS EXPLAINED IN SUCH BYE-LAWS).

                (D)  that the transferee shall become a party to the
          Registration Rights Agreement, with the attendant rights and
          obligations thereunder; PROVIDED, FURTHER, that any proposed transfer
          may be disapproved by the Board of Directors of the Company if, in
          their reasonable judgment, they have reason to believe that such
          transfer may expose the Company, any subsidiary thereof, any
          shareholder or any person ceding insurance to the Company or any such
          subsidiary to adverse tax or regulatory treatment in any jurisdiction.
          In connection with or following any transfer of Option Shares in
          accordance with clause (i) or (iii) of Section 6(c)(ii)(B), and upon
          the surrender of any certificate or certificates representing such
          Option Shares to the Company (or such agent), the Company shall cause
          to be issued in exchange therefor a new certificate or certificates
          that represent the same Common Shares and do not bear the Legend (or
          shall permit such shares to be held in book-entry form). The Company
          shall use commercially reasonable efforts to cause each Option Share
          transferred as contemplated by clause (i) or (iii) of Section
          6(c)(ii)(B) to be duly listed on each securities exchange, and to be
          accepted for quotation in each interdealer quotation system, on or in
          which any Common Shares are listed or quoted at the time of such
          transfer (PROVIDED that the approval for such listing or quotation has
          been obtained by the Company), in each case so that the Option Share
          so transferred will be freely transferable on each such exchange and
          in each such system to the same extent as the Common Shares then
          listed thereon or quoted therein; and

                (E)  such transferee shall not become a "10% Shareholder" (as
          defined in Section 6(d) below) immediately after such transfer
          (assuming for purposes of this determination that the Option Shares
          were actually owned by the transferee); and

          (iii) such transfer not resulting, directly or indirectly, in a
     transfer to any Specified Person (as defined below) of more than 9.9% of
     the Common Shares outstanding at the time of such transfer except in the
     following circumstances: (A) in connection with any tender offer or
     exchange offer made to all holders of outstanding Common Shares; (B) to any
     Post-Closing Subsidiary of St. Paul (as defined in the Formation and
     Separation Agreement) provided that such subsidiary agrees in writing with
     the Company to the same transfer restrictions as are contained in this
     Section 6(c); or (C) a transfer by operation of

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     law upon consummation of a merger or consolidation of St. Paul into another
     Person (as defined in the Formation and Separation Agreement). For purposes
     of this Section 6(c)(iii), "Specified Person" means any Person that
     generates 50% or more of its gross revenue in its most recent fiscal year
     for which financial statements are available by writing property or
     casualty insurance or reinsurance.

     (d)  In connection with any transfer of all or a portion of an Option
pursuant to Section 6(c), the Company shall prepare an Option Agreement
substantially identical to this Agreement (or, in the case of a partial
transfer, Option Agreements) issuable to the transferee (and transferor, in the
case of partial transfer) upon surrender to the Company of the existing Option
Agreement upon consummation of the transfer. Upon said consummation, the
transferee shall have such rights and obligations with respect to the number of
Option Shares covered by the portion of such Option transferred to such
transferee as the rights and obligations of St. Paul hereunder. As used herein,
"10% Shareholder" means a person who owns, in aggregate, (i) directly, (ii) with
respect to persons who are United States persons, by application of the
attribution and constructive ownership rules of Sections 958(a) and 958(b) of
the Code or (iii) beneficially, directly or indirectly, within the meaning of
Section 13(d)(3) of the United States Securities Exchange Act of 1934, issued
shares of the Company carrying 10% or more of the total combined voting rights
attaching to all issued shares.

     (e)  Any transferee of all or part of an Option pursuant to Section 6(c)
hereof (or any subsequent transferee who holds any portion of such Option as a
result of a transfer pursuant to this Section 6(e)) may transfer, in whole but
not in part, its portion of such Option to a subsequent transferee; PROVIDED
that any such transfer shall be subject to the terms and conditions set forth in
Section 6(c) and 6(d) hereof.

7.   The issuance of share certificates upon the exercise of an Option shall
be without charge to St. Paul. The Company shall pay, and indemnify St. Paul
from and against, any issuance, stamp, documentary or other taxes (other than
transfer taxes and income taxes), or charges imposed by any governmental body,
agency or official by reason of the exercise of such Option or the resulting
issuance of Common Shares.

8.   This Agreement may not be amended except in a written instrument signed
by the Company and St. Paul.

9.   All notices, requests, claims, demands and other communications
hereunder shall be in writing and shall be deemed to have been duly given if
delivered by hand (with receipt confirmed), or by certified mail, postage
prepaid and return receipt requested, or by facsimile addressed as follows (or
to such other address as a party may designate by written notice to the others)
and shall be deemed given on the date on which such notice is received:

     If to St. Paul:

     The St. Paul Companies, Inc.
     385 Washington Street
     St. Paul, MN 55102
     Attention: General Counsel
     Facsimile: (410) 205-6967

                                       10-
<Page>

     with a copy to:

     Donald R. Crawshaw
     Sullivan & Cromwell
     125 Broad Street
     New York, New York 10004
     Facsimile: (21) 558-3588

     If to the Company:

     Platinum Underwriters Holdings, Ltd.
     [                                  ]
     Hamilton, Bermuda
     Attention: General Counsel
     Facsimile: (441) [             ]

     with a copy to:
     Linda E. Ransom
     Dewey Ballantine LLP
     1301 Avenue of the Americas
     New York, New York 10019
     Facsimile: (212) 259-6333

10.  This Agreement and the Formation and Separation Agreement constitute the
entire agreement between the parties hereto with respect to the subject matter
hereof and supersede all prior agreements and understandings, oral and written,
between the parties hereto with respect to the subject matter hereof.

11.  This Agreement shall inure to the benefit of and be binding upon the
parties hereto, and their respective successors and permitted assigns. Nothing
in this Agreement, expressed or implied, is intended to confer on any person
other than the parties hereto, and their respective successors and permitted
assigns, any rights, remedies, obligations or liabilities under or by reason of
this Agreement.

12.  This Agreement may not be assigned by any party hereto, except to a
party to whom St. Paul transfers Options or Option Shares in accordance with
Section 6(c).

13. The headings contained in this Agreement are for
convenience only and do not affect the meaning or interpretation of this
Agreement.

14.  (a)  This Agreement shall be governed by, and construed in accordance with,
the law of the State of New York (without regard to principles of conflict of
laws).

     (b)  The parties hereto shall promptly submit any dispute, claim, or
controversy arising out of or relating to this Agreement, including effect,
validity, breach, interpretation, performance, or enforcement (collectively, a
"DISPUTE") to binding arbitration in New York, New York at the offices of
Judicial Arbitration and Mediation Services, Inc. ("JAMS") before an arbitrator
(the "ARBITRATOR") in accordance with JAMS' Comprehensive Arbitration Rules and
Procedures and the Federal Arbitration Act, 9 U.S.C. Sections 1 ET SEQ. The
Arbitrator shall be a former judge selected from JAMS' pool of neutrals. The
parties agree that, except as otherwise provided herein respecting temporary or
preliminary injunctive relief, binding arbitration shall be the sole means of
resolving any Dispute. Judgment on any award of the Arbitrators may be entered
by any court of competent jurisdiction.

                                       11-
<Page>

     (c)  The costs of the arbitration proceeding and any proceeding in court to
confirm or to vacate any arbitration award or to obtain temporary or preliminary
injunctive relief as provided in paragraph (d) below, as applicable (including,
without limitation, actual attorneys' fees and costs), shall be borne by the
unsuccessful party and shall be awarded as part of the Arbitrator's decision,
unless the Arbitrator shall otherwise allocate such costs in such decision.

     (d)  This Section 14 shall not prevent the parties hereto from seeking or
obtaining temporary or preliminary injunctive relieve in a court for any breach
or threatened breach of any provision hereof pending the hearing before and
determination of the Arbitrator. The parties hereby agree that they shall
continue to perform their obligations under this Agreement pending the hearing
before and determination of the Arbitrator, it being agreed and understood that
the failure to so provide will cause irreparable harm to the other party hereto
and that the putative breaching party has assumed all of the commercial risks
associated with such breach or threatened breach of any provision hereof by such
party.

     (e)  The parties agree that the State and Federal courts in The City of New
York shall have jurisdiction for purposes of enforcement of their agreement to
submit Disputes to arbitration and of any award of the Arbitrator.

15.  Capitalized terms used but not defined in this Agreement have the meanings
specified in the Formation and Separation Agreement.

16.  This Agreement becomes effective contingent upon the consummation of the
Public Offering automatically and with no action on the part of any person.

                                       12-
<Page>

     IN WITNESS WHEREOF, the parties have caused this Agreement to be signed and
attested by its duly authorized officers and to be dated as of June __, 2002.

                                            PLATINUM UNDERWRITERS HOLDINGS, LTD.

                                            By:
                                               -------------------------
                                               Name:
                                               Title:

                                            THE ST. PAUL COMPANIES, INC.

                                            By:
                                               -------------------------
                                               Name:
                                               Title:

                                       13-<Page>

                                                                   EXHIBIT 10.17

                 FORM OF 100% QUOTA SHARE RETROCESSION AGREEMENT
                                  (TRADITIONAL)

                                 BY AND BETWEEN

                   ST. PAUL FIRE AND MARINE INSURANCE COMPANY

                                  (RETROCEDANT)

                                       and

                     PLATINUM UNDERWRITERS REINSURANCE INC.

                               (RETROCESSIONAIRE)

                            DATED AS OF ________, 2002

     THIS QUOTA SHARE RETROCESSION AGREEMENT (this "AGREEMENT"), effective as of
12:01 a.m. New York time on the later of the Business Day (such term and all
other capitalized terms used but not defined herein shall have the meanings
ascribed to such terms in the Formation and Separation Agreement, as defined
below) following the Closing or July 1, 2002 (the "EFFECTIVE TIME" and such date
the "EFFECTIVE DATE"), is made by and between ST. PAUL FIRE AND MARINE INSURANCE
COMPANY, a Minnesota domiciled insurance company ("RETROCEDANT"), and PLATINUM
UNDERWRITERS REINSURANCE INC. (formerly known as USF&G Family Insurance
Company), a Maryland domiciled stock insurance company ("RETROCESSIONAIRE").

     WHEREAS, pursuant to a Formation and Separation Agreement dated as of [ ],
2002 (the "FORMATION AND SEPARATION AGREEMENT") between Platinum Underwriters
Holdings, Ltd. ("PLATINUM HOLDINGS"), the ultimate parent of Retrocessionaire,
and The St. Paul Companies, Inc. ("THE ST. PAUL"), the ultimate parent of
Retrocedant, Platinum Holdings acquired one hundred percent (100%) of the issued
and outstanding Shares; and

     WHEREAS, pursuant to the Formation and Separation Agreement, The St. Paul
agreed to cause its insurance subsidiaries to cede specified liabilities under
certain reinsurance contracts of The St. Paul's insurance subsidiaries, and
Platinum Holdings agreed to cause its insurance subsidiaries to reinsure such
liabilities; and

                                        1
<Page>

     WHEREAS, Retrocedant has agreed to retrocede to Retrocessionaire, and
Retrocessionaire has agreed to assume by indemnity reinsurance, as of the
Effective Time, a one hundred percent (100%) quota share of the liabilities
arising pursuant to the Reinsurance Contracts (as defined hereunder), subject to
the terms set forth herein.

     NOW, THEREFORE, in consideration of the mutual covenants and promises and
upon the terms and conditions set forth herein, the parties hereto agree as
follows:

                                    ARTICLE I

                          BUSINESS COVERED; EXCLUSIONS

     Retrocedant hereby obligates itself to retrocede to Retrocessionaire and
Retrocessionaire hereby obligates itself to accept, pursuant to the terms of
this Agreement, a one hundred percent (100%) quota share of any and all
liabilities incurred by Retrocedant on or after January 1, 2002 but not yet paid
as of the Effective Time, under all reinsurance and retrocession contracts that
(i) are underwritten by St. Paul Re on behalf of Retrocedant, incept on or after
January 1, 2002 and belong to the classes specified in Exhibit A-1 hereto
(solely for the convenience of the parties, Exhibit A-2 hereto sets forth a list
of such Reinsurance Contracts (including for each such Reinsurance Contract, the
applicable loss and loss adjustment expense and ceding commission reserve
amounts, each as of June 30, 2002)), or (ii) are new or renewal contracts
entered into by Retrocedant pursuant to Article III, paragraph (a) of the
Underwriting Management Agreement between Retrocedant and Retrocessionaire of
even date herewith (each, a "REINSURANCE CONTRACT"), but excluding reinsurance
contracts belonging to the classes specified in Exhibit B-1 hereto (the
"EXCLUDED CONTRACTS"), (solely for the convenience of the parties, Exhibit B-2
hereto sets forth a list of such reinsurance contracts) it being understood that
any reinsurance contract not meeting the criteria set forth in Exhibit A-1 shall
be deemed to be an Excluded Contract for purposes of this Agreement unless
otherwise agreed to by the parties. No retrocession shall attach with respect to
any contracts of reinsurance of any kind or type whatsoever issued and/or
assumed by Retrocedant, other than the Reinsurance Contracts.

                                   ARTICLE II

                                      TERM

     This Agreement shall be continuous as to the Reinsurance Contracts. Except
as mutually agreed in writing by the Retrocedant and the Retrocessionaire, this
Agreement shall remain continuously in force until all Reinsurance Contracts are
terminated, expired, cancelled or commuted.

                                        2
<Page>

                                   ARTICLE III

                                    COVERAGE

     SECTION 3.01   SECTION A (RETROSPECTIVE) COVERAGE PERIOD. The Section A
(Retrospective) Coverage Period will be the period from and including January 1,
2002 to but not including the Effective Time.

     SECTION 3.02   SECTION B (PROSPECTIVE) COVERAGE PERIOD. The Section B
(Prospective) Coverage Period will be the period from and including the
Effective Time through the commutation, expiration or final settlement of all
liabilities under any of the Reinsurance Contracts.

                                   ARTICLE IV

                      PREMIUMS AND ADDITIONAL CONSIDERATION

     SECTION 4.01   SECTION A (RETROSPECTIVE) COVERAGE PERIOD -- PREMIUM.

     (a)   On the Effective Date, in respect of the Section A (Retrospective)
Coverage Period, Retrocedant shall pay to the account of Retrocessionaire an
amount (the "INITIAL SECTION A PREMIUM") equal to one hundred percent (100%) of
the carrying value on the books of the Retrocedant as of June 30, 2002, of the
aggregate of all loss and loss adjustment expense and ceding commission reserves
relating to the Reinsurance Contracts, determined in accordance with statutory
accounting principles on a basis consistent in all material respects with the
methods, principles, practices and policies employed in the preparation and
presentation of Retrocedant's annual statutory financial statement as of
December 31, 2001 as filed with the Minnesota Department of Commerce and as
submitted to The St. Paul, and subject to the adjustments as set forth on
Exhibit C hereto (the "LOSS RESERVE ADJUSTMENTS"), as applicable.

     (b)   As soon as reasonably practicable, but in no event later than [75]
days following the Effective Date, Retrocedant shall prepare and deliver to
Retrocessionaire an accounting, including the calculation of all Loss Reserve
Adjustments as provided for herein (the "PROPOSED LOSS RESERVE ACCOUNTING") of
all loss and loss adjustment expense reserves and ceding commission reserves
relating to the Reinsurance Contracts, as of the Effective Date, determined in
accordance with statutory accounting principles on a basis consistent in all
material respects with the methods, principles, practices and policies employed
in the preparation and presentation of Retrocedant's annual statutory financial
statement as of December 31, 2001 as filed with the Minnesota Department of
Commerce and as submitted to The St. Paul, adjusted to reflect the Loss Reserve
Adjustments, as applicable (the "FINAL SECTION A PREMIUM"). In the event the
Final Section A Premium is greater than the Initial Section A Premium,
Retrocedant shall promptly pay to the account of Retrocessionaire the difference
plus interest on such amount at the Applicable Rate (as defined below) from and
including the Effective Date to and including the date of such payment. In the
event the Initial Section A Premium is greater than the Final Section A Premium,
Retrocessionaire shall promptly pay to the account of Retrocedant the

                                        3
<Page>

difference plus interest on such amount at the Applicable Rate from and
including the Effective Date to and including the date of such payment.

     (c)   In the event that a reinsurance contract is not included in one of
the classes set forth in Exhibit A-1, but is deemed to be a Reinsurance Contract
by the mutual agreement of the parties, the parties shall determine whether the
Final Section A Premium reflected one hundred percent of the associated reserves
with respect to such Reinsurance Contract as of the Effective Date. If the Final
Section A Premium did not so reflect such associated reserves with respect to
such Reinsurance Contract as of the Effective Date, Retrocedant shall promptly
pay to the account of Retrocessionaire an amount equal to the amount that should
have been included in the Final Section A Premium, as determined pursuant to
paragraph (b) of this Section 4.01, less any amounts paid by Retrocedant on or
after the Effective Date pursuant to such Reinsurance Contract relating to such
reserves, plus interest on such amount at the Applicable Rate calculated from
and including the Effective Date to and including the date of such payment to
Retrocessionaire.

     SECTION 4.02   SECTION B (PROSPECTIVE) COVERAGE PERIOD -- PREMIUMS.

     (a)   On the Effective Date, in respect of the Section B (Prospective)
Coverage Period, Retrocedant shall transfer to Retrocessionaire an amount (the
"INITIAL SECTION B PREMIUM") equal to the carrying value on the books of
Retrocedant as of June 30, 2002, of one hundred percent (100%) of the unearned
premium reserves relating to the Reinsurance Contracts, determined in accordance
with statutory accounting principles on a basis consistent in all material
respects with the methods, principles, practices and policies employed in the
preparation and presentation of Retrocedant's annual statutory financial
statement as of December 31, 2001 as filed with the Minnesota Department of
Commerce and as submitted to The St. Paul, less the applicable Ceding
Commission, as defined below, and with respect to all Reinsurance Contracts, one
hundred percent (100%) of all gross premiums written on or after the Effective
Time, net of premium returns, allowances and cancellations and less any
applicable Ceding Commission.

     (b)   As soon as reasonably practicable, but in no event later than [75]
days following the Effective Date, Retrocedant shall prepare and deliver to
Retrocessionaire an accounting (the "PROPOSED PREMIUM RESERVE ACCOUNTING",
together with the Proposed Loss Reserve Accounting, the "PROPOSED ACCOUNTING")
of all unearned premium reserves relating to the Reinsurance Contracts, as of
the Effective Date, determined in accordance with statutory accounting
principles on a basis consistent in all material respects with the methods,
principles, practices and policies employed in the preparation and presentation
of Retrocedant's annual statutory financial statement as of December 31, 2001 as
filed with the Minnesota Department of Commerce and as submitted to The St.
Paul, relating to the Reinsurance Contracts, net of the applicable Ceding
Commission (the "FINAL SECTION B PREMIUM"). In the event the Final Section B
Premium is greater than the Initial Section B Premium, Retrocedant shall
promptly pay to the account of Retrocessionaire the difference plus interest on
such amount at the Applicable Rate from and including the Effective Date to and
including the date of such payment. In the event the Initial Section B Premium
is greater than the Final Section B Premium, Retrocessionaire shall

                                        4
<Page>

promptly pay to the account of Retrocedant the difference plus interest on such
amount at the Applicable Rate from and including the Effective Date to and
including the date of such payment.

     (c)   Notwithstanding the foregoing, the parties agree that all gross
estimated premiums written prior to the Effective Date and earned but not yet
billed ("EBUB", and also referred to as "estimated premiums receivable" or
"EBNR") as of the Effective Time and relating to the Reinsurance Contracts, as
determined on or before _____, 2002, in accordance with Retrocedant's customary
practices and procedures and as submitted to The St. Paul, shall be allocated to
Retrocedant. All payments received after the Effective Time by Retrocedant or
Retrocessionaire in respect of EBUB as of the Effective Time shall be retained
by or transferred to Retrocedant, and all rights to collect such amounts shall
be retained by or transferred to Retrocedant. Any changes made on or after the
Effective Time as to the amount of EBUB as of the Effective Time shall be for
the account of Retrocessionaire and shall not affect the amount retained by
Retrocedant. The parties agree that as of the first anniversary of the date
hereof, Retrocessionaire shall pay to Retrocedant the difference, if any,
between the amount of EBUB as of the Effective Time and the aggregate amount
paid to and/or retained by Retrocedant prior to that date with respect to EBUB
as of the Effective Time. All amounts, if any, in respect of EBUB which are in
excess of EBUB as of the Effective Time, calculated pursuant to the first
sentence of this section 4.02(c), shall be for the account of Retrocessionaire
and no such amounts shall be retained by or payable to Retrocedant.

     SECTION 4.03   DISPUTE RESOLUTION.

     (a)   After receipt of the Proposed Accounting, together with the work
papers used in preparation thereof, Retrocessionaire shall have 30 days (the
"REVIEW PERIOD") to review such Proposed Accounting. Unless Retrocessionaire
delivers written notice to Retrocedant on or prior to the 30th day of the Review
Period stating that it has material objections thereto, Retrocessionaire shall
be deemed to have accepted and agreed to the Proposed Accounting.
Retrocessionaire shall not object to any method, principle, practice or policy
employed in the preparation of the Proposed Accounting if such method,
principle, practice or policy is consistent in all material respects with that
employed in the preparation and presentation of Retrocedant's statutory annual
financial statement as of December 31, 2001, as filed with the Minnesota
Department of Commerce and as submitted to The St. Paul. If Retrocessionaire so
notifies Retrocedant of its material objections to the Proposed Accounting, the
parties shall in good faith attempt to resolve, within 30 days (or such longer
period as the parties may agree) following such notice (the "RESOLUTION
PERIOD"), their differences with respect to such material objections and any
resolution by them as to any disputed amounts shall be final, binding and
conclusive.

     (b)   Any amount remaining in dispute at the conclusion of the Resolution
Period ("UNRESOLVED CHANGES") shall be submitted to arbitration. One arbiter
(each arbiter, an "ARBITER") shall be chosen by Retrocedant, the other by
Retrocessionaire, and an umpire (the "UMPIRE") shall be chosen by the two
Arbiters before they enter upon arbitration. In the event that either party
should fail to choose an Arbiter within 30 days

                                        5
<Page>

following a written request by the other party to do so, the requesting party
may choose two Arbiters, but only after providing 10 days' written notice of its
intention to do so and only if such other party has failed to appoint an Arbiter
within such 10 day period. The two Arbiters shall in turn choose an Umpire who
shall act as the umpire and preside over the hearing. If the two Arbiters fail
to agree upon the selection of an Umpire within 30 days after notification of
the appointment of the second Arbiter, the selection of the Umpire shall be made
by the American Arbitration Association. All Arbiters and Umpires shall be
active or retired disinterested property/casualty actuaries of insurance or
reinsurance companies or Lloyd's of London Underwriters.

     (c)   Each party shall present its case to the Arbiters within 30 days
following the date of appointment of the Umpire, unless the parties mutually
agree to an extension of time. The decision of the Arbiters shall be final and
binding on both parties; but failing to agree, they shall call in the Umpire and
the decision of the majority shall be final and binding upon both parties.
Judgment upon the final decision of the Arbiters may be entered in any court of
competent jurisdiction.

     (d)   Each party shall bear the expense of its own Arbiter, and shall
jointly and equally bear with the other the expense of the Umpire and of the
arbitration unless otherwise directed by the Arbiters.

     (e)   Any arbitration proceedings shall take place in New York, New York
unless the parties agree otherwise.

     (f)   Arbitration shall not be a condition precedent to any right of action
hereunder.

     (g)   Once the Proposed Accounting has been finalized in accordance with
the above process, the Final Section A Premium and the Final Section B Premium
amounts shall be as set forth in the Proposed Accounting, as determined by the
Arbiters, if applicable. In the event the sum of such amounts is greater than
the amount paid by Retrocedant to Retrocessionaire on the Effective Date,
Retrocedant shall promptly pay to the account of Retrocessionaire the difference
plus interest on such amount at the Applicable Rate from and including the
Effective Date to and including the date of such payment. In the event the
aggregate of such amounts is lower than the amount paid by Retrocedant to
Retrocessionaire on the Effective Date, Retrocessionaire shall promptly pay to
the account of Retrocedant the difference plus interest on such amount at the
Applicable Rate from the Effective Date to the date of such payment.

                                    ARTICLE V

                                CEDING COMMISSION

     With respect to the Reinsurance Contracts, Retrocessionaire shall pay the
Retrocedant a ceding commission (the "CEDING COMMISSION") with respect to the
Section B (Prospective) Coverage Period, and such Ceding Commission shall equal
100 percent (100%) of the actual expenses incurred in writing each Reinsurance
Contract,

                                        6
<Page>

including actual ceding commissions and brokerage paid, as determined in
accordance with Retrocedant's customary practices and procedures and as
submitted to The St. Paul, all as allocable pro rata to periods from and after
the Effective Time.

                                   ARTICLE VI

                               ORIGINAL CONDITIONS

     All retrocessions assumed under this Agreement shall be subject to the same
rates, terms, conditions, waivers and interpretations, and to the same
modifications and alterations, as the respective Reinsurance Contracts.

                                   ARTICLE VII

                              INURING RETROCESSIONS

     SECTION 7.01   ALLOCATION TO RETROCESSIONAIRE. Retrocedant agrees that the
retrocession contracts purchased by St. Paul Re from third party
retrocessionaires ("THIRD PARTY RETROCESSIONAIRES") on behalf of Retrocedant
prior to the Effective Time that are listed on Exhibit D hereto shall inure to
the benefit of Retrocessionaire to the extent of liabilities covered under this
Agreement ("INURING RETROCESSIONS"), subject to the agreed allocations in
Exhibits E, F and G.

     SECTION 7.02   TRANSFER. Retrocedant and Retrocessionaire shall use their
respective commercially reasonable efforts to obtain the consent of Third Party
Retrocessionaires under the Inuring Retrocessions to include Retrocessionaire as
a direct reinsured with respect to the Reinsurance Contracts or, in the
alternative, to make all payments directly to the Retrocessionaire, to the
extent allocable to the Reinsurance Contracts, in the manner set forth in
Exhibit E hereto, and to seek all payments, to the extent allocable to the
Reinsurance Contracts, in the manner set forth herein in Exhibit F hereto,
directly from Retrocessionaire, it being understood that Retrocessionaire shall
bear all risk of non-payment or non-collectibility under the Inuring
Retrocessions.

     SECTION 7.03   INURING RETROCESSIONS CLAIMS. (a) Each of the parties agrees
to transfer to the other party all recoveries or any portion thereof that such
party receives on or after the Effective Time pursuant to the Inuring
Retrocessions which are allocated to the other party in the manner set forth in
Exhibit E hereto. Retrocedant shall use its commercially reasonable efforts to
collect any recoveries due to Retrocessionaire under the Inuring Retrocessions
that indemnify the Retrocedant for losses or expenses payable or return of
premium allocable to the Retrocessionaire and shall transfer any such recoveries
received to Retrocessionaire. The parties agree that Retrocessionaire's
obligations to make payments pursuant to the Inuring Retrocessions or to
reimburse Retrocedant pursuant to this Agreement shall not be waived by
non-receipt of any such amounts. Retrocessionaire shall reimburse Retrocedant
for one hundred percent (100%) of any expenses reasonably incurred by
Retrocedant in attempting to make such collection, including all allocated
expenses, as determined in accordance with St. Paul Re's customary practices and
procedures. Retrocessionaire shall have the right to

                                        7
<Page>

associate with Retrocedant, at Retrocessionaire's own expense, in any actions
brought by Retrocedant to make such collections.

     (b)   In the event claims of Retrocedant and Retrocessionaire aggregate in
excess of the applicable limit under an Inuring Retrocession, all limits
applicable to either Retrocedant or Retrocessionaire shall be allocated between
Retrocedant and Retrocessionaire in the manner set forth in Exhibit G hereto.

     SECTION 7.04   INITIAL CONSIDERATION. On the Effective Date,
Retrocessionaire shall reimburse Retrocedant for one hundred percent (100%) of
any and all unearned premiums paid by Retrocedant under such Inuring
Retrocessions net of any applicable unearned ceding commissions paid to
Retrocedant thereunder.

     SECTION 7.05   ADDITIONAL CONSIDERATION. Retrocessionaire agrees to pay
directly to Third Party Retrocessionaires under the Inuring Retrocessions all
future premiums Retrocedant is obligated to pay pursuant to the terms of the
Inuring Retrocessions to the extent that such premiums are allocable to
Retrocessionaire in the manner set forth in Exhibit F hereto, and to indemnify
Retrocedant for all such premiums paid directly by Retrocedant, net of any
ceding commissions and similar amounts paid by Third Party Retrocessionaires to
Retrocedant.

     SECTION 7.06   TERMINATION OR COMMUTATION OF INURING RETROCESSIONS.

     (a)   With respect to any Inuring Retrocessions providing coverage solely
with respect to the Reinsurance Agreements, Retrocedant agrees, on behalf of
itself and its affiliates, not to terminate or commute any such Inuring
Retrocession without the written consent of Retrocessionaire.

     (b)   With respect to any Inuring Retrocessions providing coverage for both
Reinsurance Agreements and to business not being transferred, neither party
shall take any action or fail to take any action that would reasonably result in
the termination or commutation of any Inuring Retrocession, without the prior
written consent of the other party, such consent not to be unreasonably
withheld.

                                  ARTICLE VIII

       LOSS AND LOSS EXPENSE; SALVAGE AND SUBROGATION; FOLLOW THE FORTUNES

     (a)   Retrocessionaire shall be liable for one hundred percent (100%) of
all future loss, loss adjustment expenses, incurred but not reported losses and
other payment obligations that arise under the Reinsurance Contracts on and
after January 1, 2002 and are payable as of or after the Effective Time, and
shall reimburse Retrocedant for any losses, loss adjustment expenses and other
payment obligations paid by Retrocedant following the Effective Time in respect
of the Reinsurance Contracts, net of any recoveries received by Retrocedant with
respect thereto, including recoveries under Inuring Retrocessions.
Retrocessionaire shall have the right to all salvage and

                                        8
<Page>

subrogation on the account of claims and settlements with respect to the
Reinsurance Contracts.

     (b)   In the event of a claim under a Reinsurance Contract, the Retrocedant
will assess the validity of the claim and make a determination as to payment,
consistent with the claims handling guidelines previously provided to
Retrocedant in writing by Retrocessionaire and Retrocessionaire may exercise its
rights under Section 10.01 in respect thereof. Retrocedant shall provide prompt
notice of any claim in excess of $500,000 to Retrocessionaire. All payments made
by Retrocedant, whether under strict contract terms or by way of compromise,
shall be binding on Retrocessionaire. In addition, if Retrocedant refuses to pay
a claim in full and a legal proceeding results, Retrocessionaire will be
unconditionally bound by any settlement agreed to by Retrocedant or the adverse
judgment of any court or arbitrator (which could include any judgment for bad
faith, punitive damages, excess policy limit losses or extra contractual
obligations) and Retrocedant may recover with respect to such settlements and
judgments under this Agreement. Though Retrocedant will settle such claims and
litigation in good faith, Retrocessionaire is bound to accept the settlements
paid by Retrocedant and such settlements may be for amounts that could be
greater than the amounts that would be agreed to by Retrocessionaire if
Retrocessionaire were to settle such claims or litigation directly. It is the
intent of this Agreement that Retrocessionaire shall in every case in which this
Agreement applies and in the proportions specified herein, "follow the fortunes"
of Retrocedant in respect of risks Retrocessionaire has accepted under this
Agreement.

                                   ARTICLE IX

                          EXTRA CONTRACTUAL OBLIGATIONS

     In the event Retrocedant or Retrocessionaire is held liable to pay any
punitive, exemplary, compensatory or consequential damages because of alleged or
actual bad faith or negligence related to the handling of any claim under any
Reinsurance Contract or otherwise in respect of such Reinsurance Contract, the
parties shall be liable for such damages in proportion to their responsibility
for the conduct giving rise to the damages. Such determination shall be made by
Retrocedant and Retrocessionaire, acting jointly and in good faith, and in the
event the parties are unable to reach agreement as to such determination,
recourse shall be had to Article XV hereof.

                                    ARTICLE X

                     ADMINISTRATION OF REINSURANCE CONTRACTS

     SECTION 10.01  ADMINISTRATION.

     (a)   The parties agree that, as of the Effective Time, Retrocedant shall
have the sole authority to administer the Reinsurance Contracts in all respects,
which authority shall include, but not be limited to, authority to bill for and
collect premiums, adjust all claims and handle all disputes thereunder and to
effect any and all amendments,

                                        9
<Page>

commutations and cancellations of the Reinsurance Contracts, subject, however,
in the case of administration of claims, to all claims handling guidelines
provided in advance in writing by Retrocessionaire to Retrocedant. Retrocedant
shall not, on its own, settle any claim, waive any right, defense, setoff or
counterclaim relating to the Reinsurance Contracts with respect to amounts in
excess of $ 500,000, and shall not amend, commute or terminate any of the
Reinsurance Contracts without the prior written consent of Retrocessionaire.

     (b)   Notwithstanding the foregoing, Retrocessionaire may, at its
discretion and at its own expense, assume the administration, defense and
settlement of any claim upon prior written notice to Retrocedant. Upon receipt
of such notice, Retrocedant shall not compromise, discharge or settle such claim
except with the prior written consent of Retrocessionaire. Retrocessionaire
shall not take any action in the administration of such claim that would
reasonably be expected to adversely affect Retrocedant, its business or its
reputation, without the prior written consent of Retrocedant. Subject to the
terms of Article IX hereof, Retrocessionaire shall indemnify Retrocedant for all
Losses, including punitive, exemplary, compensatory or consequential damages
arising from such assumption of the conduct of such settlement pursuant to
Article XIV herein.

     SECTION 10.02  REPORTING AND REGULATORY MATTERS. Each party shall provide
the notices and filings required to be made by it to state regulatory
authorities as a result of this Agreement. Notwithstanding the foregoing, each
party shall provide to the other party any information in its possession
regarding the Reinsurance Contracts as reasonably required by the other party to
make such filings and in a form as agreed to by the parties.

     SECTION 10.03  DUTY TO COOPERATE. Upon the terms and subject to the
conditions and other agreements set forth herein, each party agrees to use its
commercially reasonable efforts to take, or cause to be taken, all actions, and
to do, or cause to be done, and to assist and cooperate with the other party in
doing, all things necessary or advisable to perform the transactions
contemplated by this Agreement.

     SECTION 10.04  COMMUNICATIONS RELATING TO THE REINSURANCE CONTRACTS.
Following the Effective Time, Retrocedant and Retrocessionaire shall each
promptly forward to the other copies of all material notices and other written
communications it receives relating to the Reinsurance Contracts (including,
without limitation, all inquiries and complaints from state insurance
regulators, brokers and other service providers and reinsureds and all notices
of claims, suits and actions for which it receives service of process.)

                                   ARTICLE XI

                             REPORTS AND REMITTANCES

     SECTION 11.01  REPORT FROM RETROCEDANT. Within thirty days following the
end of each month, Retrocedant shall provide Retrocessionaire with a summary
statement of account for the previous month showing all activity relating to
each of the Reinsurance

                                       10
<Page>

Contracts, including related administration costs and expenses incurred by
Retrocedant, in the form set forth as Exhibit H hereto. The monthly statement of
account shall also provide a breakdown of any amounts due to the Retrocedant or
Retrocessionaire, as the case may be, as reimbursement for paid claims, premiums
or other amounts due pursuant to the terms of this Agreement.

     SECTION 11.02  REMITTANCES. Within two Business Days after delivery of each
monthly report pursuant to Section 11.01, Retrocedant and Retrocessionaire shall
settle all amounts then due under this Agreement for that month.

     SECTION 11.03  LATE PAYMENTS. Should any payment due any party to this
Agreement be received by such party after the due date for such payment under
this Agreement, interest shall accrue from the date on which such payment was
due until payment is received by the party entitled thereto, at an annual rate
equal to the London Interbank Offered Rate quoted for six month periods as
reported in The Wall Street Journal on the first Business Day of the month in
which such payment first becomes due plus one hundred basis points (the
"APPLICABLE RATE").

     SECTION 11.04  COST REIMBURSEMENT. Retrocessionaire shall reimburse for its
allocated share of all costs and expenses incurred by Retrocedant in
administering the Reinsurance Contracts as set forth in Exhibit I hereto.

                                   ARTICLE XII

                             MAINTENANCE OF LICENSES

     Each of Retrocedant and Retrocessionaire hereby covenants to maintain at
all times all licenses and authorizations required to undertake the actions
contemplated hereby.

                                  ARTICLE XIII

                               ACCESS TO RECORDS

           From and after the Closing Date, Retrocedant shall afford to
Retrocessionaire and its respective authorized accountants, counsel and other
designated representatives (collectively, "REPRESENTATIVES") reasonable access
(including using commercially reasonable best efforts to give access to Persons
possessing information) during normal business hours to all data and information
that is specifically described in writing (collectively, "INFORMATION") within
the possession of Retrocedant relating to the liabilities transferred hereunder,
insofar as such information is reasonably required by Retrocessionaire.
Similarly, from and after the Closing Date, Retrocessionaire shall afford to
Retrocedant, any Post-closing Subsidiary of Retrocedant and their respective
Representatives reasonable access (including using commercially reasonable best
efforts to give access to Persons possessing information) during normal business
hours to Information within Retrocessionaire's possession relating to
Retrocedant, insofar as such information is reasonably required by Retrocedant.
Information may be requested under

                                       11
<Page>

this Article XIII for, without limitation, audit, accounting, claims, litigation
(other than any claims or litigation between the parties hereto) and tax
purposes, as well as for purposes of fulfilling disclosure and reporting
obligations and for performing this Agreement and the transactions contemplated
hereby.

     From and after the Closing Date, Retrocessionaire and Retrocedant or their
designated representatives may inspect, at the place where such records are
located, any and all data and information that is specifically described in
writing within the possession of the other party hereto reasonably relating to
this Agreement, on reasonable prior notice and during normal business hours. The
rights of the parties under this Article XIII shall survive termination of this
Agreement and shall continue for as long as there may be liabilities under the
Reinsurance Contracts or reporting or retention requirements under applicable
law. In addition, each party shall have the right to take copies (including
electronic copies) of any information held by the other party that reasonably
relates to this Agreement or the Reinsurance Contracts. Each party shall, and
shall cause its designated representatives to, treat and hold as confidential
information any information it receives or obtains pursuant to this Article
XIII.

                                   ARTICLE XIV

                                 INDEMNIFICATION

     SECTION 14.01  INDEMNIFICATION BY RETROCEDANT. Retrocedant agrees to
indemnify, defend and hold harmless Retrocessionaire, and its officers,
directors and employees with respect to any and all Losses arising from any
breach by Retrocedant of any representation, warranty or covenant herein.
Retrocedant further agrees to indemnify, defend and hold harmless
Retrocessionaire and its officers, directors and employees against any and all
Losses arising out of Retrocedant's administration of the Reinsurance Contracts,
including but not limited to extracontractual obligations, payments in excess of
policy limits and settlements made in respect of any such claims to the extent
arising from the gross negligence or willful misconduct of Retrocedant except to
the extent such actions are taken with the prior consent or direction of
Retrocessionaire. Such indemnification obligations shall be limited to the
aggregate of all fees paid to Retrocedant pursuant to Section 11.04 hereof.

     SECTION 14.02  INDEMNIFICATION BY RETROCESSIONAIRE. Retrocessionaire agrees
to indemnify, defend and hold harmless Retrocedant, and its officers, directors
and employees with respect to any and all Losses arising from any breach by
Retrocessionaire of any representation, warranty or covenant herein.
Retrocessionaire further agrees to indemnify, defend and hold harmless
Retrocedant and its officers, directors and employees against any and all Losses
arising out of Retrocessionaire's administration of the Reinsurance Contracts,
including but not limited to extracontractual obligations, payments in excess of
policy limits and settlements made in respect of any such claims.

     SECTION 14.03  INDEMNIFICATION PROCEDURES. (a) If a party seeking
indemnification pursuant to this Article XIV (each, an "INDEMNITEE") receives
notice or

                                       12
<Page>

otherwise learns of the assertion by a Person (including, without limitation,
any governmental entity) who is not a party to this Agreement or an Affiliate
thereof, of any claim or of the commencement by any such Person of any Action (a
"THIRD PARTY CLAIM") with respect to which the party from whom indemnification
is sought (each, an "INDEMNIFYING PARTY") may be obligated to provide
indemnification pursuant to this Section 14.01 or 14.02, such Indemnitee shall
give such Indemnifying Party written notice thereof promptly after becoming
aware of such Third Party Claim; PROVIDED that the failure of any Indemnitee to
give notice as provided in this Section 14.03 shall not relieve the Indemnifying
Party of its obligations under this Article XIV, except to the extent that such
Indemnifying Party is prejudiced by such failure to give notice. Such notice
shall describe the Third Party Claim in as much detail as is reasonably possible
and, if ascertainable, shall indicate the amount (estimated if necessary) of the
Loss that has been or may be sustained by such Indemnitee.

     (b)   An Indemnifying Party may elect to defend or to seek to settle or
compromise, at such Indemnifying Party's own expense and by such Indemnifying
Party's own counsel, any Third Party Claim. Within [30] days of the receipt of
notice from an Indemnitee in accordance with Section 14.03(a) (or sooner, if the
nature of such Third Party Claim so requires), the Indemnifying Party shall
notify the Indemnitee of its election whether the Indemnifying Party will assume
responsibility for defending such Third Party Claim, which election shall
specify any reservations or exceptions. After notice from an Indemnifying Party
to an Indemnitee of its election to assume the defense of a Third Party Claim,
such Indemnifying Party shall not be liable to such Indemnitee under this
Article XIV for any legal or other expenses (except expenses approved in writing
in advance by the Indemnifying Party) subsequently incurred by such Indemnitee
in connection with the defense thereof; PROVIDED that, if the defendants in any
such claim include both the Indemnifying Party and one or more Indemnitees and
in any Indemnitee's reasonable judgment a conflict of interest between one or
more of such Indemnitees and such Indemnifying Party exists in respect of such
claim or if the Indemnifying Party shall have assumed responsibility for such
claim with reservations or exceptions that would materially prejudice such
Indemnitees, such Indemnitees shall have the right to employ separate counsel to
represent such Indemnitees and in that event the reasonable fees and expenses of
such separate counsel (but not more than one separate counsel for all such
Indemnitees reasonably satisfactory to the Indemnifying Party) shall be paid by
such Indemnifying Party. If an Indemnifying Party elects not to assume
responsibility for defending a Third Party Claim, or fails to notify an
Indemnitee of its election as provided in this Article XIV, such Indemnitee may
defend or (subject to the remainder of this Article XIV) seek to compromise or
settle such Third Party Claim at the expense of the Indemnifying Party.

     (c)   Neither an Indemnifying Party nor an Indemnitee shall consent to
entry of any judgment or enter into any settlement of any Third Party Claim
which does not include as an unconditional term thereof the giving by the
claimant or plaintiff to such Indemnitee, in the case of a consent or settlement
by an Indemnifying Party, or the Indemnifying Party, in the case of a consent or
settlement by the Indemnitee, of a written release from all liability in respect
to such Third Party Claim.

                                       13
<Page>

     (d)   If an Indemnifying Party chooses to defend or to seek to compromise
or settle any Third Party Claim, the Indemnitee shall make available at
reasonable times to such Indemnifying Party any personnel or any books, records
or other documents within its control or which it otherwise has the ability to
make available that are necessary or appropriate for such defense, settlement or
compromise, and shall otherwise cooperate in a reasonable manner in the defense,
settlement or compromise of such Third Party Claim.

     (e)   Notwithstanding anything in this Article XIV to the contrary, neither
an Indemnifying Party nor an Indemnitee may settle or compromise any claim over
the objection of the other; PROVIDED that consent to settlement or compromise
shall not be unreasonably withheld or delayed. If an Indemnifying Party notifies
the Indemnitee in writing of such Indemnifying Party's desire to settle or
compromise a Third Party Claim on the basis set forth in such notice (provided
that such settlement or compromise includes as an unconditional term thereof the
giving by the claimant or plaintiff of a written release of the Indemnitee from
all liability in respect thereof) and the Indemnitee shall notify the
Indemnifying Party in writing that such Indemnitee declines to accept any such
settlement or compromise, such Indemnitee may continue to contest such Third
Party Claim, free of any participation by such Indemnifying Party, at such
Indemnitee's sole expense. In such event, the obligation of such Indemnifying
Party to such Indemnitee with respect to such Third Party Claim shall be equal
to (i) the costs and expenses of such Indemnitee prior to the date such
Indemnifying Party notifies such Indemnitee of the offer to settle or compromise
(to the extent such costs and expenses are otherwise indemnifiable hereunder)
PLUS (ii) the lesser of (A) the amount of any offer of settlement or compromise
which such Indemnitee declined to accept and (B) the actual out-of-pocket amount
such Indemnitee is obligated to pay subsequent to such date as a result of such
Indemnitee's continuing to pursue such Third Party Claim.

     (f)   In the event of payment by an Indemnifying Party to any Indemnitee in
connection with any Third Party Claim, such Indemnifying Party shall be
subrogated to and shall stand in the place of such Indemnitee as to any events
or circumstances in respect of which such Indemnitee may have any right or claim
relating to such Third Party Claim against any claimant or plaintiff asserting
such Third Party Claim or against any other Person. Such Indemnitee shall
cooperate with such Indemnifying Party in a reasonable manner, and at the cost
and expense of such Indemnifying Party, in prosecuting any subrogated right or
claim.

     (g)   Except with respect to claims relating to actual fraud, the
indemnification provisions set forth in this section are the sole and exclusive
remedy of the parties hereto for any and all claims for indemnification under
this Agreement.

     SECTION 14.04  SURVIVAL. This Article XIV shall survive termination of this
Agreement.

                                       14
<Page>

                                   ARTICLE XV

                                   ARBITRATION

     (a)   As a condition precedent to any right of Action under this Agreement,
any dispute or difference between the parties hereto relating to the formation,
interpretation, or performance of this Agreement, or any transaction under this
Agreement, whether arising before or after termination, shall be submitted for
decision to a panel of three arbitrators (the "PANEL") at the offices of
Judicial Arbitration and Mediation Services, Inc. in accordance with the
Streamlined Arbitration Rules and Procedures of Judicial Arbitration and
Mediation Services, Inc.

     (b)   The party demanding arbitration shall do so by written notice
complying with the terms of Section 20.06. The arbitration demand shall state
the issues to be resolved and shall name the arbitrator appointed by the
demanding party.

     (c)   Within 30 days of receipt of the demand for arbitration, the
responding party shall notify the demanding party of any additional issues to be
resolved in the arbitration and the name of the responding party's appointed
arbitrator. If the responding party refuses or neglects to appoint an arbitrator
within 30 days following receipt of the written arbitration demand, then the
demanding party may appoint the second arbitrator, but only after providing 10
days' written notice of its intention to do so and only if such other party has
failed to appoint the second arbitrator within such 10 day period.

     (d)   The two arbitrators shall, before instituting the hearing, select an
impartial arbitrator who shall act as the umpire and preside over the hearing.
If the two arbitrators fail to agree on the selection of a third arbitrator
within 30 days after notification of the appointment of the second arbitrator,
the selection of the umpire shall be made by the American Arbitration
Association. Upon resignation or death of any member of the Panel, a replacement
will be appointed in the same fashion as the resigning or deceased member was
appointed. All arbitrators shall be active or former officers of
property/casualty insurance or reinsurance companies, or Lloyd's underwriters,
and shall be disinterested in the outcome of the arbitration.

     (e)   Within 30 days after notice of appointment of all arbitrators, the
Panel shall meet and determine timely periods for briefs, discovery procedures
and schedules for hearings. The Panel shall have the power to determine all
procedural rules for the holding of the arbitration, including but not limited
to the inspection of documents, examination of witnesses and any other matter
relating to the conduct of the arbitration. The Panel shall interpret this
Agreement as an honorable engagement and not as merely a legal obligation and
shall make its decision considering the custom and practice of the applicable
insurance and reinsurance business. The Panel shall be relieved of all judicial
formalities and may abstain from following the strict rules of law. The decision
of any two arbitrators shall be binding and final. The arbitrators shall render
their decision in writing within 60 days following the termination of the
hearing. Judgment upon the award may be entered in any court of competent
jurisdiction.

                                       15
<Page>

     (f)   Except as otherwise provided herein, all proceedings pursuant hereto
shall be governed by the laws of the State of Minnesota without giving effect to
any choice or conflict of laws provision or rule (whether of the State of
Minnesota or any other jurisdiction) that would cause the application of the
laws of any jurisdiction other than the State of Minnesota.

     (g)   The parties agree that any disputes subject to arbitration pursuant
to this Article XV that may also be subject to arbitration proceedings between
respective Affiliates of the parties shall be consolidated with and subject to
arbitration pursuant to this Article XV. The parties further agree that all
issues that are limited to a specific foreign jurisdiction under an agreement
between the respective affiliates of the parties shall be determined by this
Panel pursuant to the consolidation, in reference to the governing law of the
applicable agreement.

     (h)   Each party shall bear the expense of its own arbitrator and shall
share equally with the other party the expense of the umpire and of the
arbitration.

     (i)   Arbitration hereunder shall take place in New York, New York unless
the parties agree otherwise.

     (j)   This Article XV shall survive termination of this Agreement.

                                   ARTICLE XVI

                                   INSOLVENCY

     (a)   In the event of the insolvency of Retrocedant, this reinsurance shall
be payable directly to Retrocedant, or to its liquidator, receiver, conservator
or statutory successor on the basis of the liability of Retrocedant without
diminution because of the insolvency of Retrocedant or because the liquidator,
receiver, conservator or statutory successor of Retrocedant has failed to pay
all or a portion of any claim.

     (b)   It is agreed, however, that the liquidator, receiver, conservator or
statutory successor of Retrocedant shall give written notice to the
Retrocessionaire of the pendency of a claim against Retrocedant indicating the
Reinsurance Contract, which claim would involve a possible liability on the part
of Retrocessionaire within a reasonable time after such claim is filed in the
conservation or liquidation proceeding or in the receivership, and that during
the pendency of such claim, Retrocessionaire may investigate such claim and
interpose, at its own expense, in the proceeding where such claim is to be
adjudicated any defense or defenses that it may deem available to Retrocedant or
its liquidator, receiver, conservator or statutory successor. The expense thus
incurred by Retrocessionaire shall be chargeable, subject to the approval of the
court, against Retrocedant as part of the expense of conservation or liquidation
to the extent of a pro rata share of the benefit which may accrue to Retrocedant
solely as a result of the defense undertaken by Retrocessionaire.

     (c)   As to all reinsurance made, ceded, renewed or otherwise becoming
effective under this Agreement, the reinsurance shall be payable as set forth
above by

                                       16
<Page>

Retrocessionaire to Retrocedant or to its liquidator, receiver, conservator or
statutory successor, except (1) where the Reinsurance Contracts specifically
provide another payee in the event of the insolvency of Retrocedant, and (2)
where Retrocessionaire, with the consent of the reinsured or reinsureds under
the Reinsurance Contracts, has assumed such Reinsurance Contract obligations of
Retrocedant as direct obligations of Retrocessionaire to the payees under such
Reinsurance Contracts and in substitution for the obligations of the Retrocedant
to such payees.

                                  ARTICLE XVII

                                     OFFSET

     Retrocedant and Retrocessionaire shall have the right to offset any balance
or amounts due from one party to the other under the terms of this Agreement.
The party asserting the right of offset may exercise such right at any time
whether the balances due are on account of premiums, losses or otherwise.

                                  ARTICLE XVIII

                              ERRORS AND OMISSIONS

     Any inadvertent delay, omission, error or failure shall not relieve either
party hereto from any liability which would attach hereunder if such delay,
omission, error or failure had not been made, provided such delay, omission,
error or failure is rectified as soon as reasonably practicable upon discovery.

                                   ARTICLE XIX

                        CREDIT FOR REINSURANCE; SECURITY

     SECTION 19.01  CREDIT FOR REINSURANCE. Retrocessionaire shall take all
actions reasonably necessary, if any, to permit Retrocedant to obtain full
financial statement credit in all applicable U.S. jurisdictions for all
liabilities assumed by the Retrocessionaire pursuant to this Agreement,
including but not limited to loss and loss adjustment expense reserves, unearned
premium reserves, reserves for incurred but not reported losses, allocated loss
adjustment expenses and ceding commissions, and to provide the security required
for such purpose, in a form reasonably acceptable to Retrocedant. Any reserves
required by the foregoing in no event shall be less than the amounts required
under the law of the jurisdiction having regulatory authority with respect to
the establishment of reserves relating to the relevant Reinsurance Contracts.
For purposes of this Article XIX, such "actions reasonably necessary" may
include, without limitation, the furnishing of a letter of credit or the
establishment of a custodial or trust account, as permitted under applicable
law, to secure the payment of the amounts due the Retrocedant under this
Agreement.

     SECTION 19.02  EXPENSES. All expenses of establishing and maintaining any
letter of credit or other security arrangement shall be paid by
Retrocessionaire.

                                       17
<Page>

     SECTION 19.03  SECURITY.

     (a)   Retrocessionaire shall establish and maintain a trust fund for the
benefit of Retrocedant as security for the obligations of Retrocessionaire under
this Agreement. The trust fund shall be in a form reasonably satisfactory to
Retrocedant and shall comply in all material respects with the requirements
under Maryland Insurance Law applicable to trust funds established for credit
for reinsurance purposes.

     (b)   At the Closing Date, Retrocessionaire shall deposit qualifying assets
into the trust account equal to all payments and proceeds received by
Retrocessionaire in respect of the Reinsurance Contracts, including but not
limited to assets related to transferred reserves, premium payments, reinsurance
recoverables and other payments. As of the end of each calendar quarter,
Retrocessionaire shall calculate the balance of the trust fund and the aggregate
loss, loss adjustment expense reserves, unearned premium reserves, ceding
commission and other reserves related to the Reinsurance Contracts as reported
in the statutory financial statements filed by Retrocessionaire with the
Maryland Insurance Commission for such quarter and shall provide such
calculation to Retrocedant within five days of the filing of such statutory
financial statements with the Maryland Insurance Commission. If the balance of
the trust fund is less than the aggregate of the related reserves,
Retrocessionaire promptly shall deposit sufficient qualifying assets to cause
the balance of the trust fund to equal at least one hundred percent of such
aggregate reserves. If the balance of the trust fund is greater than the
aggregate of the related reserves, Retrocessionaire may withdraw assets equal to
the amount of such excess.

     (c)   Upon receipt of the quarterly calculation from Retrocessionaire,
Retrocedant shall have the right to reasonably object to such calculation and to
offer a reasonable proposal for reserve amounts. If the parties in good faith
are not able to resolve the disagreement within [two weeks] of Retrocedant's
indication of disagreement, the parties shall mutually agree upon an independent
actuarial firm to determine an appropriate level of aggregate reserves with
respect to the Reinsurance Contracts, such level to be no more than the amount
proposed by Retrocedant and no less than the amount reported by
Retrocessionaire, and both parties agree to be bound by such determination.

     (d)   Retrocessionaire shall retain the investment discretion with respect
to the assets in the trust, provided, however, that all assets held in the trust
shall qualify as admitted assets under Maryland Insurance Law.

     (e)   Retrocessionaire shall be permitted to liquidate the trust at the
earlier of (i) such time as Retrocessionaire's obligations under this Agreement
have been met or are terminated or waived or (ii) the reserves so reported by
Retrocessionaire do not exceed $100 million as of two successive calendar year
ends.

     (f)   Retrocedant shall bear the costs and expenses of the trustee relating
to the trust.

                                       18
<Page>

                                   ARTICLE XX

                            MISCELLANEOUS PROVISIONS

     SECTION 20.01  SEVERABILITY. If any term or provision of this Agreement
shall be held void, illegal, or unenforceable, the validity of the remaining
portions or provisions shall not be affected thereby.

     SECTION 20.02  SUCCESSORS AND ASSIGNS. This Agreement may not be assigned
by either party without the prior written consent of the other. The provisions
of this Agreement shall be binding upon and inure to the benefit of and be
enforceable by the parties hereto and their respective successors and assigns as
permitted herein.

     SECTION 20.03  NO THIRD PARTY BENEFICIARIES. Except as otherwise
specifically provided for in Article XIV of this Agreement, nothing in this
Agreement is intended or shall be construed to give any Person, other than the
parties hereto, their successors and permitted assigns, any legal or equitable
right, remedy or claim under or in respect of this Agreement or any provision
contained herein, and Retrocessionaire shall not be directly liable hereunder to
any reinsured under any Reinsurance Contract.

     SECTION 20.04  EQUITABLE RELIEF. Each party hereto acknowledges that if it
or its employees or agents violate the terms of this Agreement, the other party
will not have an adequate remedy at law. In the event of such a violation, the
other party shall have the right, in addition to any other rights that may be
available to it, to obtain in any court of competent jurisdiction injunctive
relief to restrain any such violation and to compel specific performance of the
provisions of this Agreement. The seeking or obtaining of such injunctive relief
shall not foreclose or limit in any way relief against either party hereto for
any monetary damage arising out of such violation.

     SECTION 20.05  EXECUTION IN COUNTERPARTS. This Agreement may be executed by
the parties hereto in any number of counterparts and by each of the parties
hereto in separate counterparts, each of which counterparts, when so executed
and delivered, shall be deemed to be an original, but all such counterparts
shall together constitute but one and the same instrument.

     SECTION 20.06  NOTICES. All notices, requests, claims, demands and other
communications hereunder shall be in writing and shall be deemed to have been
duly given if delivered by hand (with receipt confirmed), or by facsimile (with
transmission confirmed), or by certified mail, postage prepaid and return
receipt requested, addressed as follows (or to such other address as a party may
designate by written notice to the others) and shall be deemed given on the date
on which such notice is received:

     If to Retrocedant:

     St. Paul Fire and Marine Insurance Company
     385 Washington Street
     St. Paul, MN 55102

                                       19
<Page>

     Facsimile: [ NO.  ]
     Attention: [TITLE]

     If to Retrocessionaire:

     Platinum Underwriters Reinsurance Inc.
     Clarendon House, 2 Church Street
     Hamilton, Bermuda HM11
     Facsimile: [ NO.  ]
     Attention: Secretary

     SECTION 20.07  WIRE TRANSFER. All settlements in accordance with this
Agreement shall be made by wire transfer of immediately available funds on the
due date, or if such day is not a Business Day, on the next day which is a
Business Day, pursuant to the following wire transfer instructions: [  ].
Payment may be made by check payable in immediately available funds in the event
the party entitled to receive payment has failed to provide wire transfer
instructions.

     SECTION 20.08  HEADINGS. Headings used herein are not a part of this
Agreement and shall not affect the terms hereof.

     SECTION 20.09  FURTHER ASSURANCES. Each of the parties shall from time to
time, on being reasonably requested to do so by the other party to this
Agreement, do such acts and/or execute such documents in a form reasonably
satisfactory to the party concerned as may be necessary to give full effect to
this Agreement and securing to that party the full benefit of the rights, powers
and remedies conferred upon it by this Agreement.

     SECTION 20.10  AMENDMENTS; ENTIRE AGREEMENT. This Agreement may be amended
only by written agreement of the parties. This Agreement, together with the
Formation and Separation Agreement, supersedes all prior discussions and written
and oral agreements and constitutes the sole and entire agreement between the
parties with respect to the subject matter hereof.

     SECTION 20.11  GOVERNING LAW. This Agreement shall be governed by the laws
of the State of Minnesota, without giving effect to principles of conflicts of
laws thereof.

                                       20
<Page>

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by their duly authorized representatives as of the date first above written.

                                                  ST. PAUL FIRE AND MARINE
                                                  INSURANCE COMPANY

                                                  By
                                                     ---------------------------
                                                     Name:
                                                     Title:

                                                  PLATINUM UNDERWRITERS
                                                  REINSURANCE INC.

                                                  By
                                                     ---------------------------
                                                     Name:
                                                     Title:

                                       21
<Page>

                                   EXHIBIT A-1

                            LIST OF INCLUDED CLASSES

THE BUSINESS THAT WILL BE TRANSFERRED INTO PLATINUM RE IS DEFINED BY ALL
BUSINESS INCEPTING IN THE 2002 UNDERWRITING YEAR AND BELONGING TO THE INCLUDED
CLASSES LISTED BELOW.

<Table>
<Caption>
                              NEW YORK CLASSES
 <S>         <C>
 1101                   PROPERTY TREATY P-R, NY
 1102                PROPERTY TREATY XS - RISK, NY
 1103               PROPERTY TREATY EXCESS - CAT, NY
 1104                      RETROCESSIONS, NY
 1105                        CROP-HAIL, NY
 1106                 CASUALTY TREATY PRO-RATA, NY
 1107                   CAS FIRST DOLLAR WC, NY
 1108                  CASUALTY TREATY EXCESS, NY
 1109           CAS FIRST DOLLAR AUTO, NY (NON-PROGRAM)
 1110                          LPIC, NY
 1111         CAS FIRST DOLLAR GL/OTHER, NY (NON-PROGRAM)
 1112                  NA ACCIDENT & HEALTH, NY
 1128             CASUALTY TREATY EXCESS - CLASH, NY
 1201                 INTL PROPERTY PRO RATA, NY
 1202            INTL PROPERTY TREATY EXCESS - RISK, NY
 1203            INTL PROPERTY TREATY EXCESS - CAT, NY
 1204                INTL CASUALTY TREATY, NY
 1205                   INTL MOTOR PRO-RATA, NY
 1206                 INTL ACCIDENT & HEALTH, NY
 1298                   INTL PROP OUTWARD RETRO
 1301                 MARINE TREATY PRO RATA, NY
 1302                  MARINE TREATY EXCESS, NY
 1303                   MARINE FACULTATIVE, NY
 1307                      SATELLITE XS, NY
 1500                       NON-TRADITIONAL
 1800                         CCA AIG QS
 2201        INTL PROPERTY TREATY EXCESS - RISK MIAMI
 2202                INTL PROPERTY PRO RATA, MIAMI
 2203               INTL CASUALTY TREATY, MIAMI
 2204              MARINE TREATY PRO RATA, MIAMI
 2205               INTL MOTOR PRO-RATA, MIAMI
</Table>

                                      A-1-1
<Page>

<Table>
<Caption>
                      LONDON CLASSES
<S>        <C>
L06                          N. AM MED MAL
L08                      N AM CASUALTY TREATY
L11                            N. AM CAT
L17                        N AM PROPERTY P-R
L18                      N AM PROPERTY PER RISK
L74                           MED MAL PR
L91                            N. AM CROP
L21                         INT'L MARINE P-R
L23                        INT'L PROPERTY P-R
L24                      INT'L PROPERTY PER RISK
L25                            INT'L CAT
L26                         INT'L MOTOR XS
L27                      INT'L CASUALTY EXCESS
L32                         INT'L MARINE XL
L33                U.K. PROPERTY PROPORTIONAL TREATY
L34                       INT'L CASUALTY P-R
L79                           SATELITE XS
L80                    INT'L MOTOR LIABILITY PR
L88                          INT'L NT 1999
L89                           NA NT 1999
L40                       N AM MOTOR PRO RATA
L41                          N AM MOTOR XL
L43                        N AM GL PRO RATA
L44                           N AM GL XL
L48                           N AM PI XL
L63                        N AM PI PRO RATA
B21                       BRUSSELS MARINE PR
B23                   BRUSSELS INT'L PROPERTY P-R
B24                BRUSSELS INT'L PROPERTY PER RISK
B25                       BRUSSELS INT'L CAT
B26                       BRUSSES INT'L MOTOR
B27                     BRUSSELS INT'L LIAB XS
B32                    BRUSSELS INT'L MARINE XS
B34                     BRUSSELS INT'L LIAB PR
B55                 BRUSSELS INT'L PERSONAL ACC P-R
B60              BRUSSELS INT MOTOR PHYSICAL DAMAGE PR
B61                     BRUSSELS ENGINEERING PR
B62                     BRUSSELS ENGINEERING XL
B80                     BRUSSELS MOTOR PRO RATA
B88                      BRUSSELS NON TRADITIONAL
M21                         MUNICH - MARINE PR
M23                    MUNICH - INT'L PROPERTY P-R
M24                  MUNICH - INT'L PROPERTY PER RISK
M25                         MUNICH - INT'L CAT
M26                        MUNICH - INT'L MOTOR
M27                       MUNICH - INT'L LIAB XS
M32                    MUNICH - INT'L MARINE XS
M34                 MUNICH INT'L LIABILITY PRO RATA
M55           MUNICH INT'L PROPORTIONAL PERSONAL ACCIDENT
M60        MUNICH INTERNATIONAL MOTOR PRO RATA TREATY (MAPD)
M61         MUNICH INTERNATIONAL ENGINEERING PRO RATA TREATY
M62          MUNICH INTERNATIONAL ENGINEERING EXCESS TREATY
LL1                 L1 GTR SCALEBACK EUROPE CLASS 1
LL2                 L2 GTR SCALEBACK EUROPE CLASS 2
LL3                 L3 GTR SCALEBACK EUROPE CLASS 3
LL5                 L5 GTR SCALEBACK EUROPE CLASS 5
LF1                 F1 GTR SCALEBACK EUROPE CLASS 1
LF2                 F2 GTR SCALEBACK EUROPE CLASS 2
LF3                 F3 GTR SCALEBACK EUROPE CLASS 3
LF5                 F5 GTR SCALEBACK EUROPE CLASS 5
</Table>

                                      A-1-2
<Page>

                                   EXHIBIT A-2

                            THE REINSURANCE CONTRACTS

                                      A-2-1
<Page>

                                   EXHIBIT B-1

                            LIST OF EXCLUDED CLASSES

THE FOLLOWING BUSINESS IS TO BE EXCLUDED FROM TRANSFER.

<Table>
<Caption>
                          NEW YORK CLASSES
  <S>          <C>
  1109           CAS FIRST DOLLAR AUTO, NY (PROGRAM)
  1111         CAS FIRST DOLLAR GL/OTHER, NY (PROGRAM)
  1304                        OMPT_AVT
  1305                     AVIATION XS, NY
  1306                 SATELLITE PRO RATA, NY
  1401                        BOND, NY
  1402                       CREDIT, NY
  1403                   OTHER SPECIALTY, NY
  1600                       FAC RUNOFF
  1606                CASUALTY FAC REDHAWK, NY
  2601            INTL PROPERTY FACULTATIVE, MIAMI
  3201                MOTOR PRO-RATA, SINGAPORE
  3203            INTL PROPERTY PRO RATA, SINGAPORE
  3204             INTL PROPERTY EXCESS, SINGAPORE
  3205             INTL CASUALTY TREATY, SINGAPORE
  3301            MARINE TREATY PRO RATA, SINGAPORE
  3601          INTL PROPERTY FACULTATIVE, SINGAPORE
  4201               MEDICAL MALPRACTICE, SYDNEY
  4202                 CASUALTY TREATY, SYDNEY
                           CREDIT, SYDNEY
                             ART, SIDNEY

<Caption>
                        LONDON CLASSES
  <S>       <C>
  L12                     N. AM PROF
  L13                     INTL PROF
  L14                 NA PROPERTY BINDERS
  L98                U.S. RUN-OFF BUSINESS
  L20                   LMX/RETRO PROP
  L22                   LMX/RETRO CAS
  L30                    N AM CAS E&S
  L31                  N AM BINDERS CAS
  L15                      AVIATION
  L19                    INT'L CREDIT
  L35                FINANCIAL LONG TAIL
  L67                     SATTELITE
  R21                   MARINE RUNOFF
  R22                CASUALTY RETRO RUNOF
  L97                INT PROPERTY RUNOFF
  L98                 NA CASUALTY RUNOFF
  B36       BRUSSELS FINANCIAL LINES SHORT TAIL PR
  B37       BRUSSELS FINANCIAL LINES SHORT TAIL XL
  B56          BRUSSELS NON-MARINE FAC PRO RATA
  B57             BRUSSELS NON-MARINE FAC EXCESS
  B58              BRUSSELS MARINE FAC PRO RATA
  B59               BRUSSELS MARINE FAC EXCESS
  B67                  BRUSSELS SATTELITE PR
  B77       BRUSSELS AVIATION LIABILITY PRO RATA TREATY
  B78         BRUSSELS AVIATION HULL PRO RATA TREATY
  B90               BRUSSELS FIN LINES PRO RATA
  M97              MUNICH INT'L RUN-OFF BUSINESS
  LL4             L4 GTR SCALEBACK EUROPE CLASS 4
  LF4             F4 GTR SCALEBACK EUROPE CLASS 4
</Table>

                         * NEED TO ADD AVIATION PRO RATA

                                      B-1-1
<Page>

                                   EXHIBIT B-2

                             THE EXCLUDED CONTRACTS

                                      B-2-1
<Page>

                                    EXHIBIT C

                           ADJUSTMENT OF LOSS RESERVES

Reserves to be transferred to Retrocessionaire shall include loss and loss
adjustment expense reserves, including incurred but not reported loss and loss
adjustment expense reserves, and ceding commission reserves as of the Effective
Time with respect to the Reinsurance Contracts net of retrocessional
recoverables under the Inuring Retrocessions. "Ceding commission reserves" shall
equal reserves for estimated contingent commissions, profit commissions and
sliding-scale commissions.

                                       C-1
<Page>

                                    EXHIBIT D

                              INURING RETROCESSIONS

                          [To be provided by Platinum]

                                       F-1
<Page>

                                    EXHIBIT E

                            ALLOCATION OF RECOVERIES

1.   Recoveries available under an Inuring Retrocession shall be allocated
between the parties in proportion to the losses otherwise recoverable.

2.   Any and all loss recoveries and premium adjustments resulting from
triggering the 2002 Holborn cover will be allocated between St. Paul Companies
and Platinum Re based on variance from plan and in accordance with the existing
methodology shown below.

Variance from plan at an underwriting year level will be the basis for the
allocation. The 2000, 2001 and 2002 underwriting year plan loss ratios
associated with the 2002 calendar year plan loss ratio will be compared to
indicated ultimate loss ratios for the same underwriting years. These indicated
ultimate loss ratios are the same ones used to determine if the Holborn cover
has been triggered. The 2002 underwriting year must be segmented into three
pieces. Namely, that business written on Fire and Marine paper and subject to
transfer, that written on Fire and Marine paper and not subject to transfer and
that written on Platinum Re paper. The distinction is warranted as the cession
to Platinum Re will be net of the Holborn cover. The variance in loss ratio by
underwriting year will be multiplied by the respective underwriting year's EP
component in the 2002 calendar year. This is the same EP by underwriting year
that was used to calculate the total 2002 Holborn Year's EP. This dollar
variance will be the basis for determining the distribution to be applied to the
total loss recovery and AP. It is in this manner that the total loss recovery
and AP attributable to the 2002 Holborn Year will be allocated to underwriting
year. To the extent that the recoveries and AP's have been allocated to the 2000
and 2001 underwriting year's they will be afforded to St. Paul Companies.
Similarly, the allocation to that part of the 2002 underwriting year pertaining
to non-transferred business will also be realized by St. Paul Companies. The
allocation pertaining to business written on St Paul paper and transferred will
be used in determining the net transferred business that will be ceded to
Platinum Re. The remaining allocation associated with 2002 underwriting year
business written on Platinum Re paper will inure to the benefit of Platinum Re
directly. The margin for the 2002 Holborn cover will be distributed based on
earned premium and allocated between St Paul Companies and Platinum Re by
underwriting year.

                                       G-1
<Page>

                                    EXHIBIT F

                      ALLOCATION OF RETROCESSIONAL PREMIUMS

1.   Ceded premium will be allocated to cedant and underwriting year in
proportion to the earned subject premium. Ceding commission will be allocated in
the same manner.

2.   Any and all loss recoveries and premium adjustments resulting from
triggering the 2002 Holborn cover will be allocated between St. Paul Companies
and Platinum Re based on variance from plan and in accordance with the existing
methodology shown below.

Variance from plan at an underwriting year level will be the basis for the
allocation. The 2000, 2001 and 2002 underwriting year plan loss ratios
associated with the 2002 calendar year plan loss ratio will be compared to
indicated ultimate loss ratios for the same underwriting years. These indicated
ultimate loss ratios are the same ones used to determine if the Holborn cover
has been triggered. The 2002 underwriting year must be segmented into three
pieces. Namely, that business written on Fire and Marine paper and subject to
transfer, that written on Fire and Marine paper and not subject to transfer and
that written on Platinum Re paper. The distinction is warranted as the cession
to Platinum Re will be net of the Holborn cover. The variance in loss ratio by
underwriting year will be multiplied by the respective underwriting year's EP
component in the 2002 calendar year. This is the same EP by underwriting year
that was used to calculate the total 2002 Holborn Year's EP. This dollar
variance will be the basis for determining the distribution to be applied to the
total loss recovery and AP. It is in this manner that the total loss recovery
and AP attributable to the 2002 Holborn Year will be allocated to underwriting
year. To the extent that the recoveries and AP's have been allocated to the 2000
and 2001 underwriting year's they will be afforded to St. Paul Companies.
Similarly, the allocation to that part of the 2002 underwriting year pertaining
to non-transferred business will also be realized by St. Paul Companies. The
allocation pertaining to business written on St Paul paper and transferred will
be used in determining the net transferred business that will be ceded to
Platinum Re. The remaining allocation associated with 2002 underwriting year
business written on Platinum Re paper will inure to the benefit of Platinum Re
directly. The margin for the 2002 Holborn cover will be distributed based on
earned premium and allocated between St Paul Companies and Platinum Re by
underwriting year.

3.   The $10 million of premium payable for 2002 under the Workers Compensation
$50 million excess of $75 million Payback Retrocession Contract will be split $1
million for Platinum and $9 million for St. Paul. Such contract has a feature
that states that for certain unfavorable experience on the Whole Account Stop
Loss Cover the premium on this cover could reduce by as much as $9 million. In
this event the reduction in ceded premium would benefit the St. Paul
exclusively. The Platinum share would remain at $1 million.

                                       H-1
<Page>

     The contract has a feature that allows the Retrocessionaire to renew the
cover if it is in a loss position. In this event the subsequent years' premium
will be split in proportion to the losses incurred to the cover.

                                       H-2
<Page>

                                    EXHIBIT G

                              ALLOCATION OF LIMITS

     Available limits under an Inuring Retrocession shall be allocated between
the parties in proportion to the losses otherwise recoverable.

                                       I-1
<Page>

                                    EXHIBIT H

                          FORM OF RETROCEDANT'S REPORT

                          [TBD]

                                       J-1
<Page>

                                    EXHIBIT I

                      ALLOCATION OF ADMINISTRATIVE EXPENSES

Retrocessionaire shall pay to Retrocedant the "actual cost" to Retrocedant
(which shall consist of Retrocedant's direct and reasonable indirect costs), as
certified in good faith by Retrocedant. For greater certainty, the parties agree
that "actual cost" will include any incremental and out-of-pocket costs incurred
by Retrocedant in connection with the administrative services provided
hereunder, including the conversion, acquisition and disposition cost of
software and equipment acquired for the purposes of providing the services and
the cost of establishing requisite systems and data feeds and hiring necessary
personnel.

No later than 30 days following the last day of each calendar quarter,
Retrocedant shall provide Retrocessionaire with a report setting forth an
itemized list of the services provided to Retrocessionaire during such last
calendar quarter, in a form agreed to by the parties. Retrocessionaire shall
promptly (and in no event later than 30 days after receipt of such report,
unless Retrocessionaire is contesting the amount set forth in the report in good
faith) pay to Retrocedant by wire transfer of immediately available funds all
amounts payable as set forth in such report. Each party will pay all taxes for
which it is the primary obligor as a result of the provision of any service
under this Agreement; PROVIDED, that Retrocessionaire shall be solely
responsible for, and shall reimburse Retrocedent in respect of, any sales, gross
receipts or transfer tax payable with respect to the provision of any service
under this Agreement, and any such reimbursement obligation shall be in addition
to Retrocessionaire's obligation to pay for such service.

                                       K-1

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