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                         RENAISSANCERE OPTION AGREEMENT

NONE OF THE RENRE OPTION (AS DEFINED BELOW) AND THE COMMON SHARES DELIVERABLE
UPON EXERCISE OF THE RENRE OPTION HAVE BEEN REGISTERED UNDER THE U.S. SECURITIES
ACT OF 1933. NEITHER THE RENRE 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 AND EXCEPT TO THE EXTENT
PERMITTED HEREIN. TRANSFER (AS DEFINED IN THE COMPANY'S BYE-LAWS) OF THE RENRE
OPTION OR ANY INTEREST THEREIN, OR ANY COMMON SHARES DELIVERABLE UPON EXERCISE
THEREOF, MAY BE DISAPPROVED BY THE BOARD OF DIRECTORS OF THE COMPANY IF, IN ITS
REASONABLE JUDGMENT, IT HAS 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 THE RENRE OPTION ARE
SUBJECT TO SUBSTANTIAL RESTRICTIONS ON TRANSFER AS SET FORTH IN SECTION 6 OF
THIS OPTION AGREEMENT.

       This OPTION AGREEMENT is made this 1st day of November 2002 between
PLATINUM UNDERWRITERS HOLDINGS, LTD., a company organized under the laws of the
Islands of Bermuda (the "Company"), and RENAISSANCERE HOLDINGS LTD., a company
organized under the laws of the Islands of Bermuda ("RenRe").

                                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, RenRe and the Company have entered into an Investment Agreement,
dated as of September 20, 2002 (the "Investment Agreement") in which RenRe and
the Company have set forth certain terms of their continuing relationship
following the Public Offering; and

       WHEREAS, as contemplated by the Investment Agreement, contingent upon the
consummation of the Public Offering, RenRe will purchase from the Company a
number of Common Shares determined as set forth in the Investment Agreement and
the RenRe Option, as defined below, exercisable under the circumstances
specified in this Agreement.

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       NOW, THEREFORE, in furtherance of the transactions contemplated by the
Investment 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) The Company grants RenRe an option (the "RenRe Option") to purchase for
cash up to 2,500,000 Common Shares (the "RenRe Option Shares") following the
completion of the Public Offering.

       (b)   The RenRe Option is exercisable, at an exercise price per Common
Share equal to 120 percent of the initial public offering price per Common Share
(the "RenRe Option Price"), in whole or in part at any time prior to the tenth
anniversary of the completion of the Public Offering (the "Exercise Period").

       (c)   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"). A RenRe 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.

       (d)   Notwithstanding anything to the contrary in this Agreement, RenRe's
beneficial ownership interest in the Common Shares may not at any time and under
any circumstances exceed 19.9% of the then outstanding Common Shares or such
higher limit as the Company may approve in writing. It is agreed and understood
that, prior to any exercise of the RenRe Option, RenRe shall, if necessary,
dispose of such number of Common Shares so that, immediately after any exercise
of the RenRe Option, except with the prior written approval of the Company,
RenRe will not beneficially own more than 19.9% of the then outstanding Common
Shares.

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

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

       (g)   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 RenRe Option shall entitle RenRe to receive all Transaction
Consideration that RenRe would have been entitled to if it had exercised the
RenRe Option in full immediately prior to the Transaction (to the extent it
remains unexercised and without regard to the limitations in Section 1(c)
hereof), in each case upon payment by RenRe of the RenRe Option Price as in
effect immediately prior to such time. In determining the kind and amount of
Transaction Consideration that RenRe would

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be entitled to receive in respect of any Transaction pursuant to this Section
1(g), RenRe 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(g) 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
RenRe shall be entitled to receive Transaction Consideration upon the terms and
conditions provided in this Section 1(g). Notwithstanding the foregoing, if an
adjustment is made pursuant to this Section 1(g) in respect of a Transaction
that involves a Change of Control (as defined below), RenRe shall be entitled to
exercise the RenRe Option pursuant to this Section 1(g) without regard to
Section 1(c) hereof. A Transaction is deemed to have 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 the RenRe Option in accordance with Section 1(b)
hereof, RenRe shall provide written notice to the Company of its intention to
exercise all or a portion of the RenRe Option at least ten (10) Business Days
prior to the intended Exercise Date (such notice must indicate the number of the
RenRe Option Shares RenRe intends to purchase upon exercise of the RenRe Option
and must be in writing signed by or on behalf of RenRe and delivered or sent to
the Company in accordance with Section 8 hereof).

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

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

       (d)   Notwithstanding anything to the contrary in this Agreement, the
RenRe Option may not 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 RenRe 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

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                (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 the RenRe Option shall
be proportionately adjusted so that RenRe 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 the RenRe 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 RenRe Option Shares that RenRe may purchase thereafter upon the
exercise of the RenRe Option will be determined by multiplying the number of
RenRe Option Shares theretofore purchasable upon exercise of the RenRe 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 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 RenRe Option will upon such distribution be deemed to be an
option to purchase the kind and number of shares of the capital stock of the
Subsidiary which RenRe would have been entitled to receive after such
distribution had the RenRe Option been exercised immediately prior to such
distribution or any record date with respect thereto. The roll-over of the RenRe
Option into an option 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

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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)   In the event the Company shall, in any calendar year, by dividend
or otherwise, distribute to all or substantially all holders of its Common
Shares (the "Current Distribution") (i) any dividend or other distribution of
cash, evidences of indebtedness, or any other assets or properties (other than
as described in Sections 3(a)-(c) above) or (ii) any options, warrants or other
rights to subscribe for or purchase any of the foregoing, with a fair value (as
determined in good faith by the Company's Board of Directors) per Common Share
that, when combined with the aggregate amount per Common Share paid in respect
of all other such distributions to all or substantially all holders of its
Common Shares within such calendar year, exceeds (1) for calendar year 2003, the
Initial Dividend (as defined below) or (2) for any subsequent calendar year, an
amount equal to the Initial Dividend increased at a rate of 10% per annum from
January 1, 2003, compounded annually on December 31 of each year commencing in
2003 (such excess of the Current Distribution being herein referred to as the
"Excess Distribution Amount"), the per share RenRe Option Price in effect
immediately prior to the close of business on the date fixed for such payment
shall be reduced by the Excess Distribution Amount, such reduction to become
effective immediately prior to the opening of business on the day following the
date fixed for such payment. The "Initial Dividend" means the distributions
described in items (i) and (ii) above per Common Share paid by the Company to
all or substantially all holders of its Common Shares during the 2003 calendar
year as determined by the Company's Board of Directors, up to a maximum of $0.44
per Common Share.

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

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

       (h)   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

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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, RenRe 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
the RenRe Option and the RenRe 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 RenRe Option Shares contained
in paragraphs (a) through (f), inclusive, above; provided, however, that the
RenRe 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 the
RenRe Option.

       (i)   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 RenRe
Option Price and the number of Common Shares purchasable upon the exercise of
the RenRe 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 RenRe Option Price or
decreasing the number of Common Shares purchasable upon the exercise of the
RenRe 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.

       (j)   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
RenRe Option Shares thereafter purchasable upon the exercise of the RenRe 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.

       (k)   The Company may at its option, at any time during the term of the
RenRe Option, reduce the then current RenRe 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 RenRe Option
shall become exercisable to a level sufficient to satisfy any exercise of the
RenRe Option.

5.     (a)   For so long as the RenRe Option 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

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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 reasonably, 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 the RenRe Option, including reasonably
promptly furnishing the other with copies of notices or other communications
received by the Company or RenRe, from all third parties and governmental
authorities with respect to the RenRe Option.

       (b)   For so long as the RenRe Option is exercisable, the Company and
RenRe agree to reasonably 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 RenRe to
exercise such RenRe Option pursuant to this Agreement. Each party hereby
covenants to cooperate reasonably 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 reasonably
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
RenRe.

6.     (a)   The RenRe Option and the RenRe Option Shares may not be assigned or
otherwise transferred, disposed of or encumbered by RenRe (or any subsequent
transferee) in whole or in part except as provided in this Section 6.
Notwithstanding anything to the contrary in this Agreement, RenRe may, at any
time, assign or otherwise transfer, dispose or encumber the RenRe Option or the
RenRe Option Shares in whole or in part to any direct or indirect wholly owned
subsidiary of RenRe, provided that such transferee shall enter into an option
agreement with the Company that is substantially identical to this Agreement.

       (b)   In the event of a merger of RenRe into another person, or a sale,
transfer or lease to another person of all or substantially all the assets of
RenRe, the RenRe Option or the RenRe Option Shares may be transferred as part of
such transaction to the other party to such transaction.

       (c)   On and after the date which is the second anniversary of the
closing date of the Public Offering, RenRe may transfer the RenRe Option or the
RenRe Option Shares, in whole or in part, in one or more private transaction(s)
to up to three institutional accredited 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

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

                  (A) that the RenRe Option and the RenRe Option Shares have not
              been registered under the Securities Act and, accordingly, the
              transferee may not offer, sell, assign, pledge or otherwise
              transfer the RenRe Option or any RenRe Option Shares except
              pursuant to an effective registration statement under the
              Securities Act covering such RenRe 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 (as defined in the Company's bye-laws) of RenRe Option
              Shares, and any transfer of RenRe Option and RenRe 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 RenRe Option
              Shares being transferred, including a registration statement filed
              pursuant to the Standstill 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 RenRe Option Share
              shall be held in book-entry form, and each certificate
              representing a RenRe 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

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              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 (AS
              DEFINED IN THE BYE-LAWS OF THE COMPANY) SET FORTH IN THE TRANSFER
              RESTRICTIONS, REGISTRATION RIGHTS AND STANDSTILL AGREEMENT, DATED
              AS OF NOVEMBER 1, 2002, BETWEEN RENAISSANCERE HOLDINGS LTD. 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 Transfer
              Restrictions, Registration Rights and Standstill 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 RenRe Option Shares
              in accordance with clause (i) or (iii) of Section 6(c)(ii)(B)
              (except in the case of a transfer of RenRe Option Shares to an
              "affiliate" of RenRe, as such term is defined in the Securities
              Act, in accordance with clause (i) of Section 6(c)(ii)(B)), and
              upon the surrender of any certificate or certificates representing
              such RenRe 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 RenRe 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 RenRe 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

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              this determination that the RenRe 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, or the right
       to acquire pursuant to the RenRe Option 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 Wholly Owned
       Subsidiary (as defined in the Standstill Agreement) of RenRe provided
       that such Wholly Owned 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 law upon consummation of a merger or
       consolidation of RenRe into another Person (as defined in the Investment
       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 the RenRe
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
RenRe Option Shares covered by the portion of the RenRe Option transferred to
such transferee as the rights and obligations of RenRe 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 the RenRe Option pursuant to
Section 6(c) hereof (or any subsequent transferee who holds any portion of the
RenRe Option as a result of a transfer pursuant to this Section 6(e)) may
transfer, in whole but not in part, its portion of the RenRe Option to a
subsequent transferee; provided that any such transfer shall be subject to the
terms and conditions set forth in Sections 6(c) and 6(d) hereof.

7.     The issuance of share certificates upon the exercise of the RenRe Option
shall be without charge to RenRe. The Company shall pay, and indemnify RenRe
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 the RenRe 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 RenRe.

                                       10

<PAGE>

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 RenRe:

       RenaissanceRe Holdings Ltd.
       Renaissance House
       8-12 East Broadway
       Pembroke HM19 Bermuda
       Attention: Stephen H. Weinstein, General Counsel
       Facsimile: (441) 296-5037

       with a copy to:

       John S. D'Alimonte
       Willkie Farr & Gallagher
       787 Seventh Avenue
       New York, New York  10019
       Facsimile: (212) 728-8111

       If to the Company:

       Platinum Underwriters Holdings, Ltd.
       Clarendon House
       2 Church Street
       Hamilton HM11
       Bermuda
       Attention: General Counsel
       Facsimile: (441) 292-4720

       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, the Standstill Agreement, the Services Agreement, the
Confidentiality Agreement (which Confidentiality Agreement shall terminate as of
Closing) and the Investment 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

<PAGE>

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 RenRe transfers the RenRe Option or RenRe Option Shares in accordance
with Section 6 of this Agreement or Section 2 of the Standstill Agreement, and
then only in accordance with those sections.

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. ss.ss. 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.

       (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.

                                       12

<PAGE>

15.    Capitalized terms used but not defined in this Agreement have the
meanings specified in the Investment 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.

                                       13

<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 November 1,
2002.

                                            PLATINUM UNDERWRITERS HOLDINGS, LTD.

                                            By: /s/ Jerome T. Fadden
                                                --------------------------------
                                            Name:  Jerome T. Fadden
                                            Title: President and Chief Executive
                                                   Officer

                                            RENAISSANCERE HOLDINGS LTD.

                                            By: /s/ John M. Lummis
                                                --------------------------------
                                            Name:  John M. Lummis
                                            Title: Executive Vice President and
                                                   Chief Financial Officer<PAGE>

              [Letterhead of Platinum Underwriters Holdings, Ltd.]

                                                                November 1, 2002

RenaissanceRe Holdings Ltd
Renaissance House
8-12 East Broadway
Pembroke HM 19
Bermuda

                   TRANSFER RESTRICTIONS, REGISTRATION RIGHTS
                            AND STANDSTILL AGREEMENT

Ladies and Gentlemen:

       Pursuant to an Investment Agreement, dated September 20, 2002, among
Platinum Underwriters Holdings, Ltd, a Bermuda company (the "Company"), The St.
Paul Companies, Inc. ("St. Paul") and the Purchaser identified therein
("Purchaser") (the "Investment Agreement"), the Company has agreed to sell to
Purchaser or its permitted assignees, and Purchaser has agreed to purchase from
the Company, (i) 3,960,000 Common Shares, par value $0.01 per share, of the
Company and, in certain circumstances described in the Investment Agreement, has
the right to purchase up to an additional 594,000 Common Shares (collectively,
the "Shares") and (ii) an option (the "RenRe Option") to purchase up to
2,500,000 additional Common Shares pursuant to the RenRe Option Agreement
attached as Exhibit B to the Investment Agreement.

       Unless the context otherwise requires, each reference herein to the
Securities Act, the Exchange Act or Rule 144 (or any other rule, regulation or
form promulgated under either such statute) shall be deemed to mean, as of any
time, such statute, rule, regulation or form as then in effect, after all
amendments thereto, or, if not then in effect, any successor statute, rule,
regulation or form as then in effect, after all amendments thereto.

       The Company and Purchaser are entering into this Agreement to define the
future relationship between the Company and Purchaser and in consideration of
the mutual covenants and agreements contained herein.

1.     Certain Definitions. As used in this Agreement, the following capitalized
terms have the respective meanings set forth below:

       "Affiliate" means, with respect to one person, any other person that
directly or indirectly through one or more intermediaries controls or is
controlled by or is under common control with such person.

       "Beneficial owner" and "beneficially own" means, with respect to any
person

<PAGE>

       (i) securities that such person or any of such person's Affiliates,
       directly or indirectly, has the right to vote or dispose of or has
       "beneficial ownership" of (as determined pursuant to Rule 13d-3 of the
       General Rules and Regulations under the Exchange Act, including without
       limitation pursuant to any agreement, arrangement or understanding,
       whether or not in writing; provided that a person shall not be deemed the
       "beneficial owner" of, or to "beneficially own," (A) securities tendered
       pursuant to a tender or exchange offer made by such person or any of such
       person's Affiliates until such tendered securities are accepted for
       payment, purchase or exchange, (B) any security as a result of an oral or
       written agreement, arrangement or understanding to vote such security if
       such agreement, arrangement or understanding: (1) arises solely from a
       revocable proxy given in response to a public proxy or consent
       solicitation made pursuant to, and in accordance with, the applicable
       provisions of the General Rules and Regulations under the Exchange Act,
       and (2) is not also then reportable by such Person on Schedule 13D under
       the Exchange Act (or any comparable or successor report); or

       (ii) securities that are beneficially owned, directly or indirectly, by
       any other person (or any Affiliate thereof) with which such person (or
       any of such person's Affiliates) has any agreement, arrangement or
       understanding (whether or not in writing, but excluding customary
       agreements with and between underwriters and selling group members with
       respect to a bona fide public offering of securities until the expiration
       of forty days after the date of such acquisition), for the purpose of
       acquiring, holding, voting (except pursuant to a revocable proxy as
       described in the proviso to subparagraph (i) above) or disposing of any
       Voting Securities.

       "Common Shares" means the common shares, par value U.S. $0.01 per share,
of the Company.

       "Exchange Act" means the U.S. Securities Exchange Act of 1934, as
amended.

       "Purchaser Group" means RenRe and its Subsidiaries at such time.

       "Registrable Shares" means, at any time, any and all Common Shares owned
by the Purchaser Group, whether issued to RenRe pursuant to the Investment
Agreement or the RenRe Option or otherwise acquired, as the case may be, other
than shares that have ceased to be Registrable Shares. Common Shares cease to be
Registrable Shares (a) when a registration statement with respect to the
disposition of such shares has become effective under the Securities Act and
such shares shall have been disposed of pursuant to such registration statement,
or (b) when such shares have been sold pursuant to Rule 144 under the Securities
Act.

       "Registration Expenses" means any and all expenses incident to
performance of or compliance with the demand rights set forth in Section 3(a)
and piggy-back rights set forth in Section 3(b), including, (a) all SEC and
stock exchange or National Association of Securities Dealers, Inc. registration
and filing fees, (b) all fees and expenses of complying with state securities or
blue sky laws (including reasonable fees and disbursements of counsel for the
underwriters in connection with blue sky qualifications of the Registrable
Shares), (c) the cost of printing or preparing any registration statement,
prospectus, offering circular, agreement among underwriters, underwriting
agreement, blue sky memorandum, share certificates and any other

                                       2

<PAGE>

documents in connection with the offering, purchase, sale and delivery of the
Registrable Shares, (d) the costs and charges of any transfer agent and
registrar and any custodian or attorney-in-fact appointed to act on behalf of
Purchaser, (e) all messenger and delivery expenses of the Company, (f) the
reasonable fees and expenses of any qualified independent underwriter, (g) the
reasonable fees and disbursements of counsel for the Company and the Company's
independent public accountants, including the expenses of any special audits
and/or "cold comfort" letters required by or incident to such performance and
compliance and (h) any road show and marketing expenses; provided that Purchaser
shall pay the fees and disbursements of its own counsel, if any, and all
underwriting discounts, commissions and transfer taxes, if any, relating to the
sale or disposition of its Registrable Shares.

       "Securities Act" means the U.S. Securities Act of 1933, as amended.

       "Subsidiary" means, as to any person, (i) any corporation 50% of whose
stock of any class or classes having by the terms thereof ordinary voting power
to elect a majority of the directors of such corporation (irrespective of
whether or not at the time stock of any class or classes of such corporation
shall have or might have voting power by reason of the happening of any
contingency) is at the time owned by such person and/or one or more Subsidiaries
of such person and (ii) any other person in which such person and/or one or more
Subsidiaries of such person has a 50% equity interest at the time.

       "Voting Securities" means securities of the Company with the power to
vote with respect to the election of directors generally, including, without
limitation, Common Shares (or, where reference is made to the "voting securities
of another corporation," such term shall mean securities that are generally
entitled to vote in the election of directors of such other corporation).

       "Wholly Owned Subsidiary" means, as to any person, (i) any corporation
100% of whose stock of any class or classes having by the terms thereof ordinary
voting power to elect a majority of the directors of such corporation
(irrespective of whether or not at the time stock of any class or classes of
such corporation shall have or might have voting power by reason of the
happening of any contingency) is at the time owned by such person and/or one or
more Wholly Owned Subsidiaries of such person and (ii) any other person in which
such person and/or one or more Wholly Owned Subsidiaries of such person has a
100% equity interest at the time.

2.     Restrictions on Transfers.

       (a)   Purchaser agrees that, prior to the first anniversary of the
Closing (as defined in the Investment Agreement), it will not, directly or
indirectly, sell, transfer or otherwise dispose of any of the Shares or any
interest therein, except that Purchaser may transfer Shares under the following
circumstances:

       (i) to any Wholly Owned Subsidiary of Purchaser that enters into a
       standstill agreement with the Company containing terms and conditions
       substantially identical to those in this Agreement, provided that any
       such transferee shall not, at the time of the transfer or at any time
       thereafter, be other than a Foreign Corporation (as such term is defined
       in the Investment Agreement) and a Qualified Institutional Buyer (as such
       term is defined in

                                       3

<PAGE>

       Rule 144A under the Securities Act), and in any case in accordance with
       all applicable law;

       (ii) pursuant to any tender offer or exchange offer which is recommended
       by the Board of Directors of the Company; or

       (iii) in a transfer by operation of law upon consummation of a merger or
       consolidation of Purchaser into another person.

       (b)   Notwithstanding anything to the contrary in this Agreement,
Purchaser may not, at any time, directly or indirectly, sell, transfer or
otherwise dispose of more than 9.9% of the Common Shares outstanding at the time
of such sale, transfer or other disposition to 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, except in the following circumstances: (i) in connection with any
tender offer or exchange offer made to all holders of outstanding Common Shares;
(ii) to a Wholly Owned Subsidiary of Purchaser provided that such Wholly Owned
Subsidiary agrees in writing with the Company to the same transfer restrictions
as are contained in this Section 2; or (iii) in a transfer by operation of law
upon consummation of a merger or consolidation of Purchaser into another person.

       (c)   For the avoidance of doubt, no transfer of Shares, RenRe Option
Shares or the RenRe Option or any interest therein pursuant to this Section 2 or
pursuant to the Option Agreement shall result in any increase in the number of
Demand Requests (as defined below) available.

3.     Registration Rights.

       (a)   Demand Rights.

             (i)   From and after the first anniversary of the Closing (unless
       the Company consents to an earlier date, such consent not be unreasonably
       withheld), Purchaser has the right, on four occasions, to require the
       Company to file a registration statement on Form S-1, S-2 or S-3 (or Form
       F-1, F-2 or F-3) or any similar or successor to such Forms under the
       Securities Act for a public offering Registrable Shares, by delivering to
       the Company written notice, with a copy to St. Paul, stating that such
       right is being exercised, naming, if applicable, the members of the
       Purchaser Group whose Registrable Shares are to be included in such
       registration (collectively, the "Demanding Shareholders"), specifying the
       number of each such Demanding Shareholder's Registrable Shares to be
       included in such registration and describing the intended method of
       distribution thereof (a "Demand Request"); provided that, from and after
       the fifth anniversary of the Closing, Purchaser has the right to two
       additional Demand Requests if on such date Purchaser is the beneficial
       owner (directly or indirectly) of more than 9.9% of the Common Shares
       then outstanding. Upon receipt of a Demand Request, the Company shall use
       its reasonable best efforts to promptly effect the registration under the
       Securities Act of the Registrable Shares included in the Demand Request
       to permit the Demanding Shareholders to sell or otherwise dispose of its
       Registrable Shares included in the registration in accordance with the
       method or methods of distribution intended by the Demanding Shareholders.
       The

                                       4

<PAGE>

       rights and obligations of the parties listed under this Section 3(a)(i)
       are subject to the other provisions of this Agreement.

             (ii)  The Company's obligations pursuant to Section 3(a)(i) above
       are subject to the following conditions:

                  (A) the Company is not obligated to fulfill a Demand Request
             if it has fulfilled a Demand Request received during the period of
             12 months immediately preceding the date of receipt of such Demand
             Request;

                  (B) the Company is not obligated to fulfill a Demand Request
             unless the Demand Request is for such number of Registrable Shares
             with a market value that is equal to at least $50 million as of
             the date of such Demand Request, provided that the last Demand
             Request (as specified in Section 3(a)(i) of this Agreement) will
             not be subject to the limitations of this Section 3(a)(ii)(B);

                  (C) the Company shall, if requested by Purchaser, undertake a
             "road show" and other customary marketing efforts in connection
             with the sale of Registrable Shares pursuant to such registration,
             at such times and in such manner as Purchaser may reasonably
             request;

                  (D) the Company is not obligated to fulfill the requirements
             herein with regard to any registration relating to a Demand
             Request:

                      (1) during any period of time (not to exceed ninety (90)
                  days in the aggregate during any period of twelve (12)
                  consecutive months) after the Company has determined to
                  proceed with a Securities Act registration of any of its
                  securities and is diligently proceeding to complete such
                  registration or any offering of securities pursuant thereto
                  (whether for its own account or that of any shareholder but
                  excluding any registration on Form S-8 under the Securities
                  Act or any similar or successor form) if, in the judgment of a
                  nationally recognized investment banking firm (which may be
                  acting as managing underwriter for any such offering or as
                  financial advisor to the Company), the fulfillment of such
                  requirements or such filing would have an adverse effect on
                  the offering,

                      (2) during any period of time (not to exceed ninety (90)
                  days during any period of twelve (12) consecutive months) when
                  the Company is in possession of material, non-public
                  information that the Company would not be required to disclose
                  publicly in the absence of any Securities Act registration of
                  its securities, and the disclosure of which would be
                  materially injurious to the Company, or

                      (3) during any period of time (not to exceed ninety (90)
                  days during any period of twelve (12) consecutive months) when
                  the Company is engaged in, or has determined to engage in and
                  is proceeding diligently with, any program for the purchase
                  of, or any tender offer or exchange offer for, its capital
                  securities, and determines, on advice of nationally

                                       5

<PAGE>

                  recognized independent U.S. counsel knowledgeable in such
                  matters, that such program or offer and the requested
                  registration may not proceed concurrently without violating
                  Regulation M under the Exchange Act;

                  (E) the Company is not required to maintain the effectiveness
             of a registration statement filed pursuant to Section 3(a)(i) for
             a period in excess of 90 consecutive days, which period shall be
             tolled during any period in which the Company invokes its rights
             under Section 3(f); provided, however, that, from and after the
             third anniversary of the Closing and receipt thereafter by the
             Company of written instructions from Purchaser to such effect, in
             the case of any registration of Registrable Shares on Form S-3 or
             F-3 which are intended to be offered on a continuous or delayed
             basis, such 90-day period shall be extended until all such
             Registrable Securities are sold, provided that Rule 415, or any
             successor rule under the Securities Act, permits an offering on a
             continuous or delayed basis, provided further that applicable
             rules under the Securities Act governing the obligation to file a
             post-effective amendment permit, in lieu of filing a
             post-effective amendment which (1) includes any prospectus
             required by Section 10(a) of the Securities Act or (2) reflects
             facts or events representing a material or fundamental change in
             the information set forth in the registration statement, the
             incorporation by reference of information required to be included
             in (1) and (2) above to be contained in periodic reports filed
             pursuant to Section 12 or 15(d) of the Exchange Act in the
             registration statement and provided further that Purchaser shall
             give the Company written notice, with a copy to St. Paul, at least
             ten business days prior to the beginning of any fiscal quarter in
             which Purchaser intends to attempt to sell, transfer or otherwise
             distribute any Common Shares pursuant to this subsection (E) which
             are offered on a continuous or delayed basis, which notice shall
             specify the aggregate number of Common Shares Purchaser intends to
             attempt to sell, transfer or dispose of in such fiscal quarter:

                  (F) and shall not be required to file or maintain any
             registration statement that permits a delayed or continuous
             offering to be made for more than 30 consecutive days, which
             period shall be tolled during any period in which the Company
             invokes its rights under Section 3(f), after such registration
             statement becomes effective;

                  (G) any underwriting agreement entered into in connection with
             any public offering pursuant to this Section 3 shall contain a
             provision pursuant to which the managing underwriter of any such
             public offering shall agree to use its reasonable best efforts to
             avoid selling Registrable Shares to any one person or group of
             related persons (other than another dealer acting as an
             underwriter or member of any selling group in connection with such
             public offering) if, as a result of such sale, any person would
             beneficially or of record own directly or indirectly through a
             foreign corporation, or constructively under applicable rules
             contained in the Internal Revenue Code of 1986, as amended (the
             "Code"), more than 9.9% of the Voting Securities; and

                                       6

<PAGE>

                  (H) Purchaser is entitled to designate any one or more lawful
             methods of distribution permitted pursuant to the registration
             statement (including a firm commitment underwriting) to be the
             method of distribution for the registration pursuant to this
             Section 3(a), and Purchaser will sell its Registrable Shares
             included in the registration in the designated methods (and, in
             the case of any underwriting, on the same terms and conditions as
             the Company and any other selling shareholder); the intended
             methods of distribution shall be indicated in the Demand Request
             and shall be finally determined prior to filing the registration
             statement. In any distribution pursuant to a Demand Request
             involving an underwriter, Purchaser is entitled to select any
             nationally recognized investment banking firm to act as
             underwriter, provided that with respect to any Demand Requests and
             piggy-back registrations for which the Company bears the costs and
             expenses pursuant to Section 3(g), such selection of an
             underwriter by Purchaser is subject to the consent of the Company,
             such consent not to be unreasonably withheld.

             (iii) Subject to Section 3(c), the Company may elect to include in
       any registration statement filed pursuant to this Section 3(a) any Common
       Shares to be issued by it or held by any of its Subsidiaries or by any
       other shareholders only to the extent such shares are offered and sold
       pursuant to, and on the terms and subject to the conditions of, any
       underwriting agreement or distribution arrangements entered into or
       effected by the Demanding Shareholders.

             (iv)  Purchaser may withdraw a Demand Request at any time. A Demand
       Request withdrawn pursuant to this Section 3(a)(iv) is deemed not to have
       been made for purposes of Section 3(a) and is of no further effect if and
       only if Purchaser pays or reimburses the Company for all expenses and
       costs incurred by the Company in connection with such Demand Request.

       (b)   "Piggy-Back" Rights. If at any time after the Closing the Company
proposes to register, for its own account or for the account of any shareholder,
any Common Shares on a registration statement on Form S-1, S-2 or S-3 (or Form
F-1, F-2 or F-3) or any similar or successor to such Forms under the Securities
Act for purposes of a public offering of such Common Shares, other than pursuant
to a Demand Request, Purchaser has the right to include any Registrable Shares
in such registration. The Company shall give prompt written notice of any such
proposal, including the intended method of distribution of such Common Shares,
to Purchaser. Subject to Section 3(c), upon the written request (a "Piggy-Back
Request") of Purchaser, given within fifteen (15) business days after the
transmittal of any such written notice, the Company will use its reasonable best
efforts to include in such public offering any or all of the Registrable Shares
then held by Purchaser or, if applicable, the Purchaser Group, to permit the
sale of such Registrable Shares pursuant to the intended method or methods of
distribution; provided that any participation in such public offering by
Purchaser must be on substantially the same terms as the Company's and each
other shareholder's participation therein; and provided further, that the total
number of Common Shares to be included in any such public offering may not
exceed the Maximum Number (as defined below), and Common Shares must be
allocated to give effect to this proviso as provided in Section 3(c). Purchaser
has the right to withdraw a Piggy-Back Request by giving written notice to the
Company of its election to withdraw such

                                       7

<PAGE>

request at least five (5) business days prior to the proposed filing date of
such registration statement. Each Piggy-Back Request by Purchaser must specify
the members of the Purchaser Group whose Registrable Shares are to be included
in the registration and the number of shares for each such member. The Company
is entitled to select any nationally recognized investment banking firm as
underwriter in a registration pursuant to this Section 3(b).

       (c)   Allocation of Securities Included in a Public Offering. If the
managing underwriter or placement agent for any public offering effected
pursuant to Section 3(a) or Section 3(b) (or, if there is none, a nationally
recognized investment banking firm acting as financial advisor to the Company)
advises the Company and Purchaser in writing that the number of Common Shares
sought to be included in such public offering (including those sought to be
offered by the Company and those sought to be offered by St. Paul and Purchaser)
exceeds the maximum number of Common Shares whose inclusion in such public
offering would not be reasonably likely to have an adverse effect on the price,
timing or distribution of the Common Shares included in such public offering
(the "Maximum Number"), the Company shall allocate Common Shares to be included
in such public offering up to the Maximum Number as follows:

             (i)    in the case of any registration pursuant to Section 3(a),
       first to the Demanding Shareholders, subject, if applicable, to
       allocation below the Maximum Number in such manner as they may agree
       among themselves; then, as to any excess, to the Company; and

             (ii)   in the case of any registration pursuant to Section 3(b),
       first to the Company for its own account; then to Purchaser and each
       other shareholder designated by the Company, subject to allocation below
       the Maximum Number pro rata according to the number of Registrable Shares
       held by the Purchaser Group or by such other shareholder, as the case may
       be.

Purchaser may allocate any allocation made to it pursuant to this Section 3(c)
among the members of the Purchaser Group as it wishes. The Company may allocate
any allocation made to it pursuant to Section 3(c)(i) among itself, its
Subsidiaries and its shareholders as it wishes, and may allocate any allocation
made to it for its own account pursuant to Section 3(c)(ii) among itself and its
Subsidiaries as it wishes.

       (d)   Indemnification.

             (i)    The Company shall indemnify, to the extent permitted by law,
       and hold harmless Purchaser and each member of the Purchaser Group and
       each underwriter against any losses, claims, damages or liabilities,
       joint or several, or actions in respect thereof ("Claims"), to which such
       indemnified party may become subject, under the Securities Act or
       otherwise, insofar as such Claims arise out of or are based upon any
       untrue statement or alleged untrue statement of any material fact
       contained in the registration statement, in any prospectus or preliminary
       prospectus included in such registration statement or in any amendment or
       supplement thereto filed with the SEC (collectively, "Registration
       Documents") or insofar as such Claims arise out of or are based upon the
       omission or alleged omission to state in any Registration Document a
       material fact required to be stated therein or necessary to make the
       statements made

                                       8
<PAGE>

       therein not misleading, and will reimburse any such indemnified party for
       any legal or other expenses reasonably incurred by such indemnified party
       in investigating or defending any such Claim as such expenses are
       incurred; provided that the Company is not liable in any such case to the
       extent that any such Claim arises out of or is based upon an untrue
       statement or alleged untrue statement or omission or alleged omission
       made in any Registration Document in reliance upon and in conformity with
       written information furnished to the Company by or on behalf of such
       indemnified party specifically for use in the preparation of such
       Registration Document.

             (ii)   In connection with any registration in which Purchaser is
       participating, Purchaser shall indemnify, to the extent permitted by law,
       and hold harmless the Company and each underwriter against any Claims to
       which each such indemnified party may become subject under the Securities
       Act or otherwise, insofar as such Claims arise out of or are based upon
       any untrue statement or alleged untrue statement of any material fact
       contained in any Registration Document, or insofar as any claims arise
       out of or are based upon the omission or alleged omission to state in any
       Registration Document a material fact required to be stated therein or
       necessary to make the statements made therein not misleading; provided,
       however, that such indemnification is payable only if, and to the extent
       that, any such Claim arises out of or is based upon an untrue statement
       or alleged untrue statement or omission or alleged omission made in any
       Registration Document in reliance upon and in conformity with written
       information furnished to the Company by or on behalf of Purchaser or any
       member of the Purchaser Group specifically for use in the preparation of
       such Registration Document.

             (iii)  Any person entitled to indemnification under Section 3(d)(i)
       or (ii) above shall notify promptly the indemnifying party in writing of
       the commencement of any Claim if a claim for indemnification in respect
       thereof is to be made against an indemnifying party under this Section
       3(d), but the omission of such notice shall not relieve the indemnifying
       party from any liability which it may have to any indemnified party
       otherwise than under Section 3(d)(i) or (ii). In case any action is
       brought against an indemnified party and it shall notify the indemnifying
       party of the commencement thereof, the indemnifying party is entitled to
       participate in, and, to the extent that it chooses, to assume the defense
       thereof with counsel reasonably acceptable to the indemnified party, who
       may be counsel for the indemnifying party unless the indemnified party
       reasonably concludes such counsel would have a conflict of interest in
       representing both indemnified and indemnifying parties (provided, that
       the Company is not responsible for the fees and expenses of more than one
       counsel for all indemnified parties with respect to any Claim or group of
       Claims alleged to have arisen from similar facts); and, after notice from
       the indemnifying party to the indemnified party that it so chooses, the
       indemnifying party is not liable for any legal or other expenses
       subsequently incurred by the indemnified party in connection with the
       defense thereof other than reasonable costs of investigation. The
       indemnifying party is not liable for any settlement of any proceeding
       effected without its written consent, but if settled with such consent or
       if there be a final judgment for the plaintiff, the indemnifying party
       agrees to indemnify the indemnified party from and against any loss or
       liability by reason of such settlement or judgment. No indemnifying party
       may, without the prior written consent of the indemnified party, effect
       any settlement of any pending or threatened proceeding in

                                       9
<PAGE>

       respect of which any indemnified party is or could have been a party and
       indemnity could have been sought hereunder by such indemnified party,
       unless such settlement includes an unconditional release of such
       indemnified party from all liability on claims that are the subject
       matter of such proceeding.

             (iv)   If for any reason the foregoing indemnity is unavailable to,
       or is insufficient to hold harmless, an indemnified party in respect of
       any Claim, (a) if the indemnified party is an underwriter, then each
       indemnifying party shall contribute to the amount paid or payable by the
       indemnified party as a result of any Claim in such proportion as is
       appropriate to reflect the relative benefits received by Purchaser and
       the Company, on the one hand, and the indemnified party, on the other,
       from the offering of securities to which such Registration Documents
       relate, (b) as between the Company and Purchaser, the indemnifying party
       shall contribute to the amount paid or payable by the indemnified party
       as a result of any Claim in such proportion as is appropriate to reflect
       the relative benefits to and the relative fault of the indemnifying
       party, on the one hand, and the indemnified party, on the other, in
       connection with the statements or omissions that resulted in such Claims,
       as well as any other relevant equitable considerations. If, however, the
       allocation provided in clause (a) or (b) of the immediately preceding
       sentence is not permitted by applicable law, or if the indemnified party
       failed to give the notice required by clause (iii) above, then each
       indemnifying party shall contribute to the amount paid or payable by such
       indemnified party in such proportion as is appropriate to reflect both
       the relative benefits and the relative fault of the indemnifying party
       and the indemnified party in connection with the statements or omissions
       that resulted in such Claims as well as any other relevant equitable
       considerations. The relative benefits received by Purchaser and the
       Company, on the one hand, and by the underwriters, on the other, shall be
       deemed to be in the same proportion as the total net proceeds from the
       offering of the securities (before deducting expenses) received by
       Purchaser and the Company, on the one hand, bear to the total
       underwriting discounts and commissions received by the underwriters, on
       the other hand, in connection with such offering. The relative fault
       shall be determined by reference to, among other things, whether the
       untrue or alleged untrue statement of a material fact or the omission or
       alleged omission to state a material fact relates to information supplied
       by the indemnifying party or by the indemnified party and the parties'
       relative intent, knowledge, access to information and opportunity to
       correct or prevent such statement or omission. The amount paid or payable
       in respect of any Claim shall be deemed to include any legal or other
       expenses reasonably incurred by such indemnified party in connection with
       investigating or defending any such Claim. No person guilty of fraudulent
       misrepresentation (within the meaning of Section 11(f) of the Securities
       Act) is entitled to contribution from any person who was not guilty of
       such fraudulent misrepresentation.

             (v)    As a condition to their obligations under this Section 3(d),
       each of the Company and Purchaser must have received from each
       underwriter of Registrable Shares included in a registration statement
       filed under the Securities Act pursuant to Section 3(a) or 3(b) an
       undertaking to indemnify, to the extent permitted by law, and hold
       harmless the Company and Purchaser against (or if such indemnity is
       unavailable or is insufficient to hold harmless an indemnified party, to
       provide contribution, on substantially the same basis provided to such
       underwriter in accordance with Section 3(d)(iv), in respect of) any

                                       10
<PAGE>

       Claims to which each such indemnified party may become subject under the
       Securities Act or otherwise, insofar as such Claims arise out of or are
       based upon any untrue statement or alleged untrue statement of any
       material fact contained in any Registration Document, or insofar as any
       claims arise out of or are based upon the omission or alleged omission to
       state in any Registration Document a material fact required to be stated
       therein or necessary to make the statements made therein not misleading;
       provided, however, that such indemnification (or contribution, as the
       case may be) shall be payable only if, and to the extent that, any such
       Claim arises out of or is based upon an untrue statement or alleged
       untrue statement or omission or alleged omission made in any Registration
       Document in reliance upon and in conformity with written information
       furnished to the Company by or on behalf of such underwriter specifically
       for use in the preparation thereof. Notwithstanding the foregoing, no
       underwriter shall be required to contribute any amount in excess of the
       amount by which the total price at which the Registrable Shares
       underwritten by it and distributed to the public were offered to the
       public exceeds the amount of any damages which such underwriter otherwise
       has been required to pay by reason of such untrue or alleged untrue
       statement or omission or alleged omission. The obligation of any
       underwriters to provide indemnification (or contribution, as the case may
       be) pursuant to this paragraph (v) shall be several in proportion to
       their respective underwriting commitments and not joint.

             (vi)   The maximum liability of Purchaser to indemnify or
       contribute payments pursuant to this Section 3(d) may not exceed the
       aggregate net proceeds from the sale of Common Shares (including the sale
       of Common Shares, if any, pursuant to the exercise of an over-allotment
       option) to Purchaser in such registration.

             (vii)  The obligations of the Company pursuant to this Section 3(d)
       are in addition to any liability which the Company may otherwise have and
       extends, upon the same terms and conditions, to each officer, director
       and general partner of any underwriter or Purchaser and to each person,
       if any, who controls any underwriter or Purchaser within the meaning of
       the Securities Act. The obligations of Purchaser pursuant to this Section
       3(d) are in addition to any liability which Purchaser may otherwise have
       and extends, upon the same terms and conditions, to each officer,
       director and general partner of the Company, any underwriter and to each
       person, if any, who controls the Company or any underwriter within the
       meaning of the Securities Act. The obligations of any underwriter
       pursuant to this Section 3(d) are in addition to any liability which such
       underwriter may otherwise have and extends, upon the same terms and
       conditions, to each officer, director and general partner of the Company
       or Purchaser and to each person, if any, who controls the Company or
       Purchaser within the meaning of the Securities Act.

             (viii) 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.

       (e)   Requirements with Respect to Registration. If and whenever the
Company is required by the provisions hereof to use its reasonable best efforts
to register any Registrable Shares under the Securities Act, the Company shall,
as promptly as practicable:

                                       11
<PAGE>

             (i)    Prepare and file with the SEC a registration statement with
       respect to such Registrable Shares and use its reasonable best efforts to
       cause such registration statement to become and remain effective for the
       periods specified herein.

             (ii)   Prepare and file with the SEC such amendments and
       supplements to such registration statement and the prospectus used in
       connection therewith as may be necessary to keep such registration
       statement current and to comply with the provisions of the Securities Act
       and any regulations promulgated thereunder with respect to the sale or
       other disposition of such Registrable Shares, for as long as a prospectus
       relating to any such Registrable Shares is required to be delivered under
       the Securities Act, subject to the limitation in Section 3(a)(ii)(F).

             (iii)  Furnish to each member of the Purchaser Group participating
       in the offering copies (in reasonable quantities) of summary,
       preliminary, final, amended or supplemented prospectuses, in conformity
       with the requirements of the Securities Act and any regulations
       promulgated thereunder, and other documents as reasonably may be required
       in order to facilitate the disposition of such Registrable Shares, but
       only while the Company is required under the provisions hereof to keep
       the registration statement current.

             (iv)   Use its reasonable best efforts to register or qualify the
       Registrable Shares covered by such registration statement under such
       other securities or blue sky laws of such jurisdictions in the United
       States as the managing underwriter or placement agent (or, if none,
       Purchaser) shall reasonably request, and do any and all other acts and
       things which may be reasonably necessary to enable such managing
       underwriter, placement agent or Purchaser to consummate the disposition
       of the Registrable Shares in such jurisdictions; provided, however, that
       in no event is the Company required to qualify to do business as a
       foreign corporation in any jurisdiction where it is not so qualified; to
       execute or file any general consent to service of process under the laws
       of any jurisdiction; to take any action that would subject it to service
       of process in suits other than those arising out of the offer and sale of
       the securities covered by the registration statement; or to subject
       itself to taxation in any jurisdiction where it has not theretofore done
       so unless the Company shall have received a reasonably satisfactory
       indemnity in respect thereto; or to subject itself to any insurance
       regulation in any jurisdiction in which it has not theretofore been so
       subject.

             (v)    Notify Purchaser, at any time when a prospectus relating to
       any Registrable Shares covered by such registration statement is required
       to be delivered under the Securities Act, of the Company's becoming aware
       that the prospectus included in such registration statement, as then in
       effect, includes an untrue statement of a material fact or omits to state
       any material fact required to be stated therein or necessary to make the
       statements therein not misleading in the light of the circumstances then
       existing, and, subject to the limitation in Section 3(a)(ii), promptly
       prepare and furnish to Purchaser and each underwriter a reasonable number
       of copies of a prospectus supplemented or amended so that, as thereafter
       delivered to the purchasers of the Registrable Shares, such prospectus
       shall not include an untrue statement of a material fact or omit to state
       a

                                       12
<PAGE>

       material fact required to be stated therein or necessary to make the
       statements therein not misleading in the light of the circumstances then
       existing.

             (vi)   As soon as practicable after the effective date of such
       registration statement, and in any event within eighteen (18) months
       thereafter, make generally available to Purchaser an earnings statement
       (which need not be audited) covering a period of at least twelve (12)
       consecutive months beginning after the effective date of the registration
       statement, which earning statement shall satisfy the provisions of
       Section 11(a) of the Securities Act, including at the Company's option,
       Rule 158 thereunder.

             (vii)  Deliver promptly to Purchaser, upon Purchaser's written
       request, copies of all correspondence between the SEC and the Company,
       its counsel or auditors and all memoranda relating to discussions with
       the SEC or its staff with respect to the registration statement and
       permit Purchaser to do such investigation, upon reasonable advance
       notice, with respect to information contained in or omitted from the
       registration statement as it deems reasonably necessary. Purchaser agrees
       that it will use its reasonable best efforts not to interfere
       unreasonably with the Company's business when conducting any such
       investigation. Purchaser shall not, and shall not permit any member
       (other than a member controlling Purchaser) of the Purchaser Group and
       shall use its reasonable best efforts to cause any member of the
       Purchaser Group controlling Purchaser and any underwriter in connection
       with such offering not to, disclose any material non-public information
       received from the Company pursuant to this Section 3(e)(vii) unless such
       material non-public information becomes generally known on a
       non-confidential basis other than as a result of the breach of any
       obligation of confidentiality.

             (viii) The Company agrees that it will use its reasonable best
       efforts to obtain "cold comfort" letters from the Company's independent
       public accountants (including one letter when such registration statement
       goes effective and one at the closing) in customary form and covering
       such matters of the type customarily covered by such "cold comfort"
       letters.

             (ix)   Enter into underwriting or placement agreements in the
       customary form, including, without limitation, representations and
       warranties and indemnification and contribution provisions for any
       underwriter or placement agent selling Registrable Shares hereunder.

             (x)    Use its commercially reasonable efforts to qualify (and
       remain qualified) for registration on Form S-3 or F-3, as applicable.

       (f)   Use of Registration Statement. Purchaser shall, and shall cause
each other member (other than a member controlling Purchaser) of the Purchaser
Group and shall use its reasonable best efforts to cause each member of the
Purchaser Group controlling Purchaser and each underwriter in connection with
any public offering to, upon receipt by Purchaser of the Company's notice
pursuant to Section 3(e)(v), promptly discontinue the disposition of Registrable
Shares pursuant to the prospectus and registration statement contemplated by
such notice, until such time as Purchaser and the underwriters have received
copies of the amended or supplemented prospectus contemplated by Section 3(e)(v)
and upon such receipt by Purchaser,

                                       13
<PAGE>

Purchaser shall, and shall use its reasonable best efforts to cause each
underwriter in connection with any public offering to, deliver to the Company
all copies in the possession of Purchaser or any such underwriter at the time of
receipt by Purchaser of the Company's notice pursuant to Section 3(e)(v) of any
prospectus covering Registrable Shares.

       (g)   Expenses.

             (i)    The Company shall pay (to the extent permitted by the
       Bermuda Companies Act 1981 as then in effect) the Registration Expenses
       (other than underwriting discounts and commissions, which shall be borne
       by Purchaser) incurred in connection with the first two Demand Requests,
       and Purchaser shall pay the Registration Expenses (including the
       underwriting discounts and commissions) incurred in connection with all
       other Demand Requests, provided that in each case, each of the Company
       and Purchaser shall pay the expenses of its own legal counsel and
       provided further, that to the extent the Company files a registration
       statement in response to a Demand Request made prior to the first
       anniversary of the Closing, Purchaser will pay the Registration Expenses
       (including the underwriting discounts and commissions) and such Demand
       Request shall not be considered one of the first two Demand Requests for
       purposes of this Section 3(g)(i).

             (ii)   With respect to the Registration Expenses (other than
       underwriting discounts and commissions, which shall be borne by
       Purchaser) incurred in connection with any piggy-back registration under
       Section 3(b), Purchaser shall only pay such portion of such expenses that
       is equal to the fraction, (A) the numerator of which is the number of
       Registrable Shares registered (subject to any cutback) pursuant to the
       applicable Piggy-Back Request of Purchaser, and (B) the denominator of
       which is the total number of Common Shares registered under the
       applicable registration statement.

       (h)   Certain Obligations of Purchaser. Purchaser shall provide such
information to the Company as the Company may reasonably request in connection
with any registration hereunder of Registrable Shares for Purchaser's account
and shall dispose of any such Registrable Shares pursuant to any registration
hereunder in the manner contemplated thereby, and shall notify the Company in
writing if it becomes aware of any material change or inaccuracy in such
information.

       (i)   Transfer of RenRe Option. In the event Purchaser transfers the
RenRe Option to one or more transferees pursuant to Section 6(c) of the RenRe
Option Agreement, following execution by any such transferee and delivery to the
Company of an instrument reasonably acceptable to the Company acknowledging that
such transferee has become a party to this Agreement and assumed Purchaser's
rights and obligations hereunder, all references herein to Purchaser with
respect to Registrable Shares consisting of Common Shares issuable pursuant to
the RenRe Option Agreement shall be deemed to apply (i) in the case of a
transfer of the RenRe Option in whole, solely to the transferee of the RenRe
Option and (ii) in the case of a transfer of the RenRe Option in part,
collectively either to the transferees of the RenRe Option or, if Purchaser has
retained a portion of the RenRe Option, to Purchaser and such transferee(s). The
Company shall be entitled to rely solely upon the instructions of Purchaser or
the transferee of the RenRe Option designated in writing by RenRe with respect
to any rights granted hereunder

                                       14
<PAGE>

to the holders of Registrable Option Shares. The number of demand and piggy back
registration rights afforded Purchaser hereunder shall apply in aggregate to
Purchaser and any and all said transferees, without any increase in the number
of said demand and piggy back registration rights. There are no registration
rights with respect to the RenRe Option itself.

       (j)   Lock-up Arrangements. Purchaser agrees that, upon the request of
the Company, it shall agree to any lock-up arrangement requested by any
underwriter for up to a 90 day period following the effectiveness of any
Securities Act registration statement covering the Company's capital securities
(but excluding any registration on Form S-8 under the Securities Act or any
similar successor form), provided, that if such registration statement relates
to a public offering of Common Shares, other than pursuant to a Demand Request,
Purchaser has the right to submit a Piggy-Back Request to the Company pursuant
to Section 3(b) without regard to the notice requirement in such section.

       (k)   Availability of Rule 144. The Company shall use its reasonable best
efforts to ensure that the information requirement set forth in paragraph (c) of
Rule 144 is satisfied so that the safe harbor provided by Rule 144 is available
to Purchaser for all transfers of Registrable Shares made after the 90th day
after the Company becomes subject to the reporting requirements of Section 13 of
the Exchange Act. Upon request made by Purchaser at any time during such period,
the Company will provide Purchaser with a written statement confirming that the
Company has been subject to and has complied with the reporting requirements as
provided in said paragraph (c), unless the Company has included such a statement
in its then-latest annual or quarterly report filed with the SEC.

       (l)   Termination of Certain Rights. The rights of Purchaser to make a
Piggy-Back Request pursuant to Section 3(b) shall terminate on the first day
after the Closing on which Purchaser does not have a right to make a Demand
Request pursuant to Section 3(a) (the "Termination Date"); provided that, as to
any Registrable Shares that are subject to a Demand Request or Piggy-Back
Request duly delivered on or prior to the Termination Date, such termination
will be delayed until such shares have been disposed of pursuant to such
registration statement or such offering has been completed or abandoned.

4.     Standstill and Voting Provisions; Share Repurchases.

       (a)   Purchaser agrees that except as contemplated in the Investment
Agreement, Purchaser and its Subsidiaries will not, and Purchaser will use its
commercially reasonable efforts to cause its Affiliates and any officer,
employee, agent or representative of Purchaser or such Affiliates (collectively,
the "Representatives") to not, directly or indirectly, (i) advise or encourage
any party or entity with respect to the voting of any Voting Securities in an
attempt to cause a Change in Control of the Company, (ii) initiate or otherwise
solicit shareholders of the Company for the granting of any proxy or the
approval of one or more shareholder proposals, or induce any other party or
entity to seek any proxy or to initiate any shareholder proposal, that in any
case results or is designed to result in a Change in Control of the Company, or
(iii) directly or indirectly acquire, announce an intention to acquire, or agree
to acquire, by purchase or otherwise, beneficial ownership of any Voting
Securities, if, immediately after any such acquisition, Purchaser or any
Subsidiary of Purchaser would beneficially or of record own, in the aggregate,
more than 19.9% of the Voting Securities then outstanding, except with the prior

                                       15
<PAGE>

written approval of the Company, provided, that nothing herein shall limit the
ability of Purchaser or any of its Affiliates to discuss any matter, including a
Change in Control of the Company, with St. Paul or any of its Affiliates. A
"Change in Control" of the Company is deemed to have occurred if (i) any person
or group (as defined for purposes of Section 13 of the Securities Exchange Act
of 1934, as amended) (excluding the Company or any Subsidiary thereof) becomes
the beneficial owner of more than 50% of the outstanding equity securities of
the Company representing the right to vote for the election of directors or (ii)
there shall occur a merger, consolidation or other business combination in which
the Company is acquired (unless the shareholders of the Company immediately
before such business combination own, directly or indirectly, immediately
following such business combination, at least a majority of the combined voting
power of the entity resulting from such business combination).

       (b)   In the event that the Company determines to effect repurchases of
its Common Shares (and, if applicable, New Securities, as defined below) in a
repurchase program approved by its board of directors, then Purchaser must sell
to the Company, on each day on which any Common Shares are so repurchased at a
price equal to the average price of repurchases by the Company on such day, such
number of Common Shares necessary to limit Purchaser's beneficial ownership
interest in the Company to no more than 19.9% of the outstanding Voting
Securities (on an Unadjusted Basis (as defined in the Company's bye-laws)) after
all such repurchases, or such higher limit as the Company may approve in
writing; provided, that Purchaser may require that any repurchases from it by
the Company must be at the average purchase price of any repurchases effected by
the Company on such day pursuant to Rule 10b-18 under the Exchange Act. The
precise number of Common Shares to be repurchased by the Company from Purchaser
will be rounded up to the nearest round lot number.

       (c)   Notwithstanding anything in Section 4(b) to the contrary, if (i)
Purchaser beneficially owns less than 19.9% of the outstanding Voting Securities
on an Unadjusted Basis (as defined in the Company's bye-laws) or such higher
limit as the Company may approve in writing other than as a result of any
voluntary sale of Common Shares by Purchaser, and (ii) Purchaser thereafter
purchases Common Shares to maintain such beneficial ownership level at 19.9% or
such higher limit as the Company may approve in writing either (A) in accordance
with its pre-emptive rights under Section 5 or (B) in the open market, in each
case within 60 days after suffering such dilution, then any repurchases by the
Company of its Common Shares in the period that is six months plus one day from
the trade date of any such purchase by Purchaser in accordance with clause (A)
or (B) may only be effected in a manner that either does not trigger Purchaser's
obligation pursuant to Section 4(b) to sell back Common Shares to the Company,
or would not result in any requirement by Purchaser to disgorge profits pursuant
to Section 16(b) of the Exchange Act.

       (d)   Purchaser shall use its commercially reasonable efforts to cause
all Voting Securities beneficially owned directly or indirectly by it or any
Subsidiary to be present for quorum purposes, in person or represented by proxy
at every meeting of holders of Common Shares (or, if applicable, in any matter
to be acted upon by written consent of shareholders without a meeting).

                                       16
<PAGE>

5.     Pre-emptive Rights.

       (a)   If the Company proposes to issue (a "Dilutive Transaction") any
Common Shares or any securities convertible into or exchangeable for or carrying
in any way the right to acquire Common Shares (the "New Securities"), Purchaser
will have the right to subscribe for up to such number of New Securities as is
necessary to maintain Purchaser's beneficial ownership interest in the Company
at the same percentage owned immediately prior to the Dilutive Transaction
(assuming conversion or exchange of the New Securities; provided, however, that
Purchaser shall not have a right to subscribe for any New Securities if the
ownership of such New Securities would cause Purchaser to beneficially own in
excess of 19.9% of the outstanding Voting Securities, or such higher limit as
the Company may approve in writing. The precise number of New Securities to be
issued to Purchaser will be rounded up to the nearest round lot number. For the
avoidance of doubt, the issuance of Common Shares upon the settlement of the
Purchase Contracts forming part of the ESUs is deemed to be a Dilutive
Transaction.

       (b)   If the Company proposes to issue New Securities, it shall give
Purchaser 30 days' written notice of its intention, describing the type and
number of New Securities and the price and terms upon which the Company proposes
to issue the same. Purchaser shall have ten days from the date of receipt of any
such notice to agree to purchase up to Purchaser's pro rata share of New
Securities specified above for the same price paid to the Company in connection
with such Dilutive Transaction (i.e., less underwriting discounts and
commissions) by giving written notice to the Company and stating therein the
quantity of New Securities to be purchased provided, however, that in the
connection with an Early Settlement (as such term is defined in the Purchase
Contract Agreement) of the Purchase Contracts pursuant to Section 5.10 of the
Purchase Contract Agreement, this Section 5(b) shall not apply, but the Company
shall give the Purchaser prompt written notice of such Early Settlement.

       (c)   In the event that Purchaser fails to exercise its pre-emptive right
within the ten-day notice period, the Company shall have 120 days thereafter to
sell the New Securities with respect to which Purchaser's pre-emptive right was
not exercised, upon the same terms specified in the Company's notice to
Purchaser (except that underwriting discounts and commissions may be paid),
provided that the Company shall not be obligated to issue such New Securities.
To the extent the Company does not sell all the New Securities offered within
such 120-day period, the Company shall not thereafter issue or sell such New
Securities without first again offering such securities to Purchaser in the
manner provided above.

       (d)   Notwithstanding anything in this Section 5 to the contrary, the
parties hereby agree that

             (i)    any New Securities issued pursuant to (A) any director or
       employee benefit plans of the Company or (B) any acquisition transaction
       engaged in by the Company are not to be deemed Dilutive Transactions and
       that, consequently, no pre-emptive rights will attach with respect to New
       Securities issued pursuant to clauses (A) and (B);

                                       17
<PAGE>

             (ii)   Purchaser's pre-emptive rights to subscribe for New
       Securities will terminate without any further action by either party
       hereto at such time as Purchaser beneficially owns less than 6.25% of the
       outstanding Common Shares;

             (iii)  Purchaser shall have no pre-emptive rights with respect to
       any proposed Dilutive Transaction if (A) to the extent a proposed
       Dilutive Transaction is an underwritten public offering, the underwriters
       request a reduction of the number of New Securities to be issued, or (B)
       prior to a Dilutive Transaction a nationally recognized investment bank
       mutually agreed by the parties advises Purchaser and the Company in
       writing that Purchaser exercising pre-emptive rights in connection with
       such Dilutive Transaction would materially hinder or interfere with such
       proposed Dilutive Transaction;

             (iv)   with respect to any New Securities that are securities
       convertible into or exchangeable for or carrying in any way the right to
       acquire Common Shares ("Convertible New Securities"), the terms of such
       Convertible New Securities issuable to Purchaser upon exercise of the
       pre-emptive rights shall contain provisions which preclude conversion
       into or exchange for the underlying Common Shares until such time as
       Purchaser's ownership of Voting Securities measured immediately after
       such conversion or exchange is no more than 19.9% of the total number of
       outstanding Voting Securities, or such higher limit as the Company may
       approve in writing. Ownership for this purpose will be determined under
       Section 958 of the Code. These special limitations on conversions or
       exchanges shall lapse upon a transfer of the Convertible New Securities
       by Purchaser to a person with which Purchaser has no constructive
       ownership relationship under Section 958 of the Code; and

             (v)    Purchaser shall have no pre-emptive rights in the event of
       an issuance of Common Shares upon the conversion or exchange of New
       Securities with respect to the issuance of which Purchaser had
       pre-emptive rights.

(e)    Cooperation.

             (i)    For so long as Purchaser has the right to exercise any
       pre-emptive rights pursuant to this Section 5, each party hereto shall
       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 in connection with Purchaser's
       exercise of such rights, and will cooperate reasonably with the other
       party in promptly seeking to obtain all such authorizations, consents,
       orders and approvals. The parties hereto agree to cooperate reasonably,
       complete and file any joint applications for any authorizations from any
       governmental authorities reasonably necessary or desirable to effectuate
       the transactions contemplated by this Section 5. The parties hereto agree
       that they will keep each other apprised of the status of matters relating
       to the exercise of the pre-emptive rights contemplated under this Section
       5, including reasonably promptly furnishing the other with copies of
       notices or other communications received by the Company or Purchaser,
       from all third parties and governmental authorities with respect to the
       pre-emptive rights contemplated by this Section 5.

                                       18
<PAGE>

             (ii)   For so long as Purchaser has the right to exercise any
       pre-emptive rights pursuant to this Section 5, the Company and Purchaser
       agree to reasonably promptly prepare and file, if necessary, any filing
       under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as
       amended, with the Federal Trade Commission (the "FTC") and the Antitrust
       Division of the Department of Justice (the "DOJ") in order to enable
       Purchaser to exercise such pre-emptive rights under this Section 5. Each
       party hereby covenants to cooperate reasonably with the other such party
       to the extent reasonably necessary to assist in making any reasonable
       supplemental presentations to the FTC or the DOJ, and, if requested by
       the FTC or the DOJ, to reasonably promptly amend or furnish additional
       information thereunder.

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

       6.    Specific Performance. Each of Purchaser and the Company
acknowledges that the other party would not have an adequate remedy at law for
money damages if any of the covenants or agreements of the other party in this
Agreement were not performed in accordance with its terms and therefore agrees
that the other party shall be entitled to specific enforcement of such covenants
or agreements and to injunctive and other equitable relief in addition to any
other remedy to which it may be entitled, at law or in equity.

       7.    Legend. Each of the Company and Purchaser agrees that the
certificates for the Shares and the RenRe Option shall bear the following legend
thereon, which legend shall remain until the date the securities represented by
such certificates are transferred in accordance with the provisions of this
Agreement. In the event of the termination of this Agreement pursuant to Section
13, the second sentence of the legend shall be removed:

       THESE SECURITIES WERE SOLD IN A PRIVATE PLACEMENT, AND ANY COMMON SHARES
       ISSUED UPON EXERCISE HEREOF WILL BE ISSUED AND SOLD, WITHOUT REGISTRATION
       UNDER THE SECURITIES ACT OF 1933, AND MAY BE OFFERED OR SOLD ONLY IF
       REGISTERED UNDER THE SECURITIES ACT OF 1933 OR IF AN EXEMPTION FROM
       REGISTRATION IS AVAILABLE. THESE SECURITIES ARE SUBJECT TO THE PROVISIONS
       OF A TRANSFER RESTRICTIONS, REGISTRATION RIGHTS AND STANDSTILL AGREEMENT
       DATED NOVERMER1, 2002, BY AND BETWEEN THE ISSUER AND THE PURCHASER
       IDENTIFIED THEREIN, AND MAY NOT BE SOLD OR TRANSFERRED EXCEPT IN
       ACCORDANCE THEREWITH.

       8.    Entire Agreement. This Agreement, the Investment Agreement, the
Services Agreement, the RenRe Option Agreement and the Confidentiality Agreement
(which Confidentiality Agreement shall terminate as of Closing), contain the
entire understanding of the parties with respect to the subject matter of such
agreements. This Agreement may not be amended or any provision waived except by
a writing signed, in the case of an amendment, by each party hereto and, in the
case of a waiver, by the party against whom the waiver is to be effective. No
failure or delay by any party in exercising any right, power or privilege
hereunder shall operate as a waiver thereof unless the other party is materially
prejudiced thereby, nor shall any single or partial exercise thereof preclude
any other or further exercise thereof or the

                                       19
<PAGE>

exercise of any other right, power or privilege. The rights and remedies herein
provided shall be cumulative and not exclusive of any rights and remedies
provided by law.

       9.    Assignment. This Agreement is not assignable by either of the
parties without the prior written consent of the other, except that this
Agreement may be assigned by the Purchaser to (i) any Subsidiary of Purchaser
that is a Foreign Corporation (as defined in the Investment Agreement) and a
Qualified Institutional Buyer (as such term is defined in Rule 144A under the
Act), provided that such assignee enters into an assumption agreement reasonably
satisfactory to the Company, and, provided further that no assignment pursuant
to this clause shall relieve Purchaser of its obligations hereunder, and (ii)
Purchaser may assign in whole or in part its rights and obligations under this
Agreement (excluding Sections 4 and 5 hereof) to any transferee of Registrable
Shares representing more than 4% of the outstanding Common Shares. This
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and permitted assigns.

       10.   Severability. If any term, provision or restriction of this
Agreement is held by a court of competent jurisdiction to be invalid, void or
unenforceable, the remainder of the terms, provisions and restrictions of this
Agreement shall remain in full force and effect, unless such action would
substantially impair the benefits to either party of the remaining provisions of
this Agreement.

       11.   Notices. Any notices and other communications required to be given
pursuant to this Agreement shall be deemed to have been duly given or made as of
the date delivered or mailed if delivered personally, mailed by registered or
certified mail (postage prepaid, return receipt requested), or delivered by
facsimile or by telex, as follows:

       If to the Company:

             Platinum Underwriters Holdings, Ltd.
             Clarendon House
             2 Church Street
             Hamilton HM (11)
             Bermuda
             Attention: General Counsel
             Telecopier: (441) 292-4720

       with copies to:

             Linda E. Ransom
             Dewey Ballantine LLP
             1301 Avenue of the Americas
             New York, New York  10019
             Telecopier: (212) 259-6333

                                       20
<PAGE>

       If to Purchaser:

             RenaissanceRe Holdings Ltd.
             Renaissance House
             8-12 East Broadway
             Pembroke HM19 Bermuda
             Attention: Stephen H. Weinstein, General Counsel
             Telecopier: (441) 296-5037

       with copies to:

             John S. D'Alimonte
             Willkie Farr & Gallagher
             787 Seventh Avenue
             New York, New York  10019
             Telecopier: (212) 728-8111

       12.   Effectiveness of Agreement. This Agreement shall become effective
only upon the execution and delivery of this Agreement by the parties hereto and
the occurrence of the Closing under the Investment Agreement.

       13.   Termination. This Agreement shall terminate upon the occurrence of
any of the following:

       (a)   the written agreement of the Company and Purchaser to terminate
this Agreement; or

       (b)   Purchaser shall cease to own Voting Securities.

provided, that the provisions set forth in Section 4(a) hereof will continue in
effect until six months after the termination of this Agreement.

       14.   Expenses. Except as otherwise provided herein, all costs and
expenses incurred in connection with this Agreement shall be paid by the party
incurring such cost or expense.

       15.   Governing Law, etc. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York without regard to
the conflicts of laws rules of such State. This Agreement may be executed in one
or more counterparts, which together will constitute a single agreement.

       16.   Jurisdiction. Except as otherwise expressly provided in this
Agreement, the parties hereto agree that any suit, action or proceeding seeking
to enforce any provision of, or based on any matter arising out of or in
connection with, this Agreement or the transactions contemplated hereby shall be
brought in the United States District Court for the Southern District of New
York or, if such court shall not have jurisdiction over such suit, any New York
State court sitting in New York City, so long as such courts shall have subject
matter jurisdiction over such suit, action or proceeding, and that any cause of
action arising out of this Agreement shall be deemed to have arisen from a
transaction of business in the State of New York, and each of

                                       21
<PAGE>

the parties hereby irrevocably consents only with respect to such suits, actions
or proceedings to the jurisdiction of such courts (and of the appropriate
appellate courts therefrom) in any such suit, action or proceeding and
irrevocably waives, to the fullest extent permitted by law, any objection that
it may now or hereafter have to the laying of the venue of any such suit, action
or proceeding in any such court or that any such suit, action or proceeding
which is brought in any such court has been brought in an inconvenient forum.
Without limiting the foregoing, each party agrees that service of process on
such party by hand delivery as provided in Section 11 shall be deemed effective
service of process on such party.

       17.   Waiver of Jury Trial. Each of the parties hereto irrevocably waives
any and all right to trial by jury in any legal proceeding arising out of or
related to this Agreement or the transactions contemplated hereby.

       18.   Captions. The captions herein are included for convenience of
reference only and shall be ignored in the construction or interpretation
hereof.

                                       22

<PAGE>

         If you are in agreement with the foregoing, please sign the
accompanying copy of this letter and return it to the Company, whereupon this
letter shall be a binding agreement between you and the Company.

                                           Very truly yours,

                                           PLATINUM UNDERWRITERS HOLDINGS, LTD.

                                           By: /s/ Jerome T. Fadden
                                               ---------------------------------
                                           Name:  Jerome T. Fadden
                                           Title: President and Chief Executive
                                                  Officer

Accepted and agreed as of the date first written above:

RENAISSANCERE HOLDINGS LTD.

By: /s/ John M. Lummis
    ----------------------------------
Name:  John M. Lummis
Title: Executive Vice President and
       Chief Financial Office

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