Document:

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                                                                 EXHIBIT 10.54

                                                                  EXECUTION COPY

                     100% QUOTA SHARE RETROCESSION AGREEMENT
                              (NON-TRADITIONAL - B-1)

                                 BY AND BETWEEN

                      ST. PAUL REINSURANCE COMPANY LIMITED

                                  (RETROCEDANT)

                                       and

                     PLATINUM UNDERWRITERS REINSURANCE INC.

                               (RETROCESSIONAIRE)

                          DATED AS OF 1 NOVEMBER, 2002

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                                                                  EXECUTION COPY

THIS QUOTA SHARE RETROCESSION AGREEMENT (this "AGREEMENT"), effective as of
12:01 a.m. London time on the day following the Closing (such term and all other
capitalized terms used but not defined herein shall have the meanings ascribed
to such terms in the Formation and Separation Agreement, as defined below; such
time the "EFFECTIVE TIME" and such date the "EFFECTIVE DATE"), is made by and
between ST. PAUL REINSURANCE COMPANY LIMITED, a United Kingdom domiciled
insurance company ("RETROCEDANT"), and PLATINUM UNDERWRITERS REINSURANCE, INC.
(formerly known as USF&G Family Insurance Company), a Maryland domiciled stock
insurance company ("RETROCESSIONAIRE").

WHEREAS, pursuant to a Formation and Separation Agreement dated as of October
28, 2002 (the "FORMATION AND SEPARATION AGREEMENT") between Platinum
Underwriters Holdings, Ltd. ("PLATINUM HOLDINGS"), the ultimate parent of
Retrocessionaire, and The St. Paul Companies, Inc. ("THE ST. PAUL"), the
ultimate parent of Retrocedant, Platinum Holdings acquired one hundred percent
(100%) of the issued and outstanding Shares; and

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

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

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

1.       BUSINESS COVERED

         Retrocedant hereby obligates itself to retrocede to Retrocessionaire
         and Retrocessionaire hereby obligates itself to accept, pursuant to the
         terms of this Agreement, a one hundred percent (100%) quota share of
         any and all liabilities incurred by Retrocedant on or after January 1,
         2002 but not yet paid as of the Effective Time, under all reinsurance
         and retrocession contracts that:

         (i)      are listed in Exhibit A-1 hereto, and Exhibit A-2 sets forth
         the aggregate loss, loss adjustment expense and ceding commission
         reserve amounts, each as of June 30, 2002, over the Reinsurance
         Contracts, by line of business, or

         (ii)     are new or renewal non-traditional reinsurance or retrocession
         contracts of the kind listed in Exhibit A-1 hereto entered into by
         Retrocedant pursuant to Clause 4.2 or 4.3 of Part B or (to the extent
         provided therein) Clause 10 of Part C of the UK Underwriting Agency and
         Underwriting Management Agreement (the "AGENCY AGREEMENT") between
         Retrocedant and Platinum Re (UK) Limited of even date herewith and that
         Retrocedant has consented to being retroceded to Retrocessionaire,

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         (each, a "REINSURANCE CONTRACT").

         Notwithstanding the foregoing, Retrocedant shall retain all liabilities
         for ceding commission and brokerage fees up to the carrying value of
         the related reserves on the books of the Retrocedant as of September
         30, 2002 (the "Initial Ceding Commission Reserves"), and as finally
         determined pursuant to the provisions of Article IV herein, which
         reserves shall also be retained by Retrocedant. All liabilities for
         ceding commissions and brokerage fees in excess of such carrying value
         shall be assumed by Retrocessionaire, as provided for above.

         Notwithstanding the foregoing, Retrocedant will retain all liabilities
         arising under any Reinsurance Contract relating to or emanating from
         the losses caused by the European floods in August 2002 (he "Flood
         Liabilities").

         With respect to any named storm(s) (which are Tropical Prediction
         Center designated named storms) in existence as of the Effective Time
         which cause insured damage within 10 days of the Effective Date, except
         as provided for herein, Retrocedant shall retrocede one hundred percent
         (100%) quota share of losses arising from all such storms, net of the
         inuring benefit of Inuring Retrocessions as allocated pursuant to
         Exhibits D and F (but excluding the inuring benefit of the Holborn
         aggregate cover referenced as Item 13 in Exhibit D) to Retrocessionaire
         and Retrocessionaire shall accept one hundred percent (100%) quota
         share of such losses. However, Retrocedant shall retain $25,000,000 of
         losses, in the aggregate, net of the inuring benefit of Inuring
         Retrocessions as allocated pursuant to Exhibits D and F, in excess of
         the first $25,000,000, net of the inuring benefit of Inuring
         Retrocessions as allocated pursuant to Exhibits D and F, that
         Retrocessionaire assumes. Retrocedant shall use commercially reasonable
         efforts to arrange, on behalf of Retrocessionaire, third party
         retrocessional coverage for losses arising from such named storms in
         excess of $50,000,000 in the aggregate, net of the inuring benefit of
         Inuring Retrocessions as allocated pursuant to Exhibits D and F. The
         cost of such coverage shall not exceed $5 million with such cost shared
         equally by Retrocedant and Retrocessionaire. The amount of such
         coverage shall be $100,000,000 or such lesser amount as may be
         available on the specified terms. It is understood that the calculation
         of any losses or retentions by the Retrocedant or the Retrocessionaire,
         as the case may be, pursuant to this subparagraph shall include all
         losses or retentions, respectively, with respect to all subsidiaries of
         The St. Paul or Platinum Holdings, as the case may be, under any Quota
         Share Retrocession Agreement, as defined in the Formation and
         Separation Agreement, between a subsidiary of The St. Paul, as cedant,
         and any subsidiary of Platinum Holdings as retrocessionaire.

         The Flood Liabilities, the 2002 UK Bank Book Liabilities and the
         liabilities in respect of the named storms, as described above retained
         by Retrocedant as specified above (collectively, the "Excluded Losses")
         shall not be subject to this Agreement.

         No retrocession shall attach with respect to any contracts of
         reinsurance of any kind or type whatsoever issued and/or assumed by
         Retrocedant, other than the Reinsurance Contracts.

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2.       TERM

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

3.       COVERAGE

3.1      SECTION A (RETROSPECTIVE) COVERAGE PERIOD

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

3.2      SECTION B (PROSPECTIVE) COVERAGE PERIOD

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

3.3      COVERAGE LIMITS

         Coverage under this Agreement for a specific Reinsurance Contract shall
         be subject to the aggregate limit specified in the Reinsurance Contract
         reduced by all payments made by either Retrocedant or Retrocessionaire
         pursuant to such Reinsurance Contract. The application of any such
         aggregate limits shall be made in chronological order in accordance
         with the dates of the respective losses. It is understood, however,
         that such application shall not result in Retrocedant's becoming liable
         for any adverse development under this Agreement except as otherwise
         explicitly set forth herein.

4.       PREMIUMS AND ADDITIONAL CONSIDERATION

4.1      SECTION A (RETROSPECTIVE) COVERAGE PERIOD -- PREMIUMS

         (A)      On the Effective Date, in respect of the Section A
                  (Retrospective) Coverage Period, Retrocedant shall pay to the
                  account of Retrocessionaire an aggregate amount representing
                  the sum of all amounts related and specifically allocated to
                  each individual Class of Business (the "Initial Section A
                  Premium") equal to one hundred percent (100%) of the carrying
                  value on the books of the Retrocedant as of September 30,
                  2002, of the aggregate of all Loss Reserves relating to the
                  Reinsurance Contracts, determined in accordance with statutory
                  accounting principles on a basis consistent in all material
                  respects with the methods, principles, practices and policies
                  employed in the preparation and presentation of Retrocedant's
                  annual statutory financial statement as of 31 December 2001 as
                  filed with the Financial Services Authority (consistent with
                  the methods, principles, practices and policies applied at
                  June 30, 2002) and as submitted to

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                  The St. Paul, provided, that in no event shall such amount be
                  less than Retrocedant's good faith estimate, based upon due
                  investigation by the Retrocedant, as of the date at which such
                  the calculation is being made, of all Loss Reserves relating
                  to the Reinsurance Contracts by applicable Class of Business
                  that would be required (i)]in order for such reserves to be in
                  full compliance with customary practices and procedures of
                  Retrocedant for filings and financial statements as of
                  September 30, 2002, and (ii) to cause such reserves to bear a
                  reasonable relationship to the events, conditions,
                  contingencies and risks which are the bases for such reserves,
                  to the extent known by Retrocedant at the time of such
                  calculation.

         (B)      On the 90th day following the Effective Date (or if such 90th
                  day is not a Business Day, the first Business Day following
                  such 90th day), Retrocedant shall prepare and deliver to
                  Retrocessionaire an accounting (the "Proposed Loss Reserve
                  Accounting") of all Loss Reserves relating to the Reinsurance
                  Contracts, as of the Effective Date, determined in accordance
                  with this Section 4.1 and the Methodology for Calculation of
                  the Final Section A Premium, as set forth on Exhibit B hereto
                  (the "Final Section A Premium") and the reserves for ceding
                  commissions and brokerage fees relating to the Reinsurance
                  Contracts on the books at the Retrocedant as of the Effective
                  Date (the "Final Ceding Commission Reserves"), and taking into
                  consideration all relevant data becoming available to
                  Retrocedant subsequent to the Effective Date. In the event the
                  Final Section A Premium for any individual Class of Business
                  is greater than the Initial Section A Premium for such
                  individual Class of Business or the Final Ceding Commission
                  Reserves are less than the Initial Ceding Commission Reserves,
                  Retrocedant shall promptly pay to the account of
                  Retrocessionaire the difference plus interest on such amount
                  at the Applicable Rate from and including the Effective Date
                  to and including the date of such payment. In the event the
                  Final Section A Premium for any individual Class of Business
                  is less than the Initial Section A Premium for such individual
                  Class of Business or the Final Ceding Commission Reserves are
                  greater than the Initial Ceding Commission Reserves,
                  Retrocessionaire shall promptly pay to the account of
                  Retrocedant the difference plus interest on such amount at the
                  Applicable Rate (as defined below) from and including the
                  Effective Date to and including the date of such payment.
                  "Class of Business" shall be defined as each individual class
                  or line of business as delineated by the Retrocedant as of the
                  date hereof as set forth on Exhibit A-1.

         (C)      In the event that a reinsurance contract is not included in
                  one of the classes set forth in Exhibit A-1, but is deemed to
                  be a Reinsurance Contract by the mutual agreement of the
                  parties, the parties shall determine whether the Final Section
                  A Premium reflected one hundred percent of the associated
                  reserves with respect to such Reinsurance Contract as of the
                  Effective Date. If the Final Section A Premium did not so
                  reflect such associated reserves with respect to such
                  Reinsurance Contract as of the Effective Date, Retrocedant
                  shall promptly pay to the account of Retrocessionaire an
                  amount equal to the amount that

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                  should have been included in the Final Section A Premium, as
                  determined pursuant to paragraph (b) of this Section 4.1, less
                  any amounts paid by Retrocedant on or after the Effective Date
                  pursuant to such Reinsurance Contract relating to such
                  reserves, plus interest on such amount at the Applicable Rate
                  calculated from and including the Effective Date to and
                  including the date of such payment to Retrocessionaire.

         (D)      Notwithstanding the foregoing, the parties agree that all
                  gross estimated premiums written prior to the Effective Date
                  and earned but not yet billed, net of applicable ceding
                  commission and retrocession premium (net of retrocession
                  commissions) ("EBUB", and also referred to as "estimated
                  premiums receivable" or "EBNR" or "earned but unbilled") as of
                  the Effective Time and relating to the Reinsurance Contracts,
                  as determined on or before 30 September, 2002, as set forth in
                  Exhibit C, in a manner consistent with Retrocedant's customary
                  practices and procedures and as submitted to The St. Paul,
                  shall be allocated to Retrocedant. All payments received after
                  the Effective Time by Retrocedant or Retrocessionaire in
                  respect of EBUB as of the Effective Time shall be retained by
                  Retrocedant or held on trust for and paid by Retrocessionaire
                  to or to the order of Retrocedant, and all rights to collect
                  such amounts shall be retained by or transferred to
                  Retrocedant. Any changes made on or after the Effective Time
                  as to the estimated amount of EBUB as of the Effective Time
                  shall be for the account of Retrocessionaire and shall not
                  affect the amount retained by Retrocedant. The parties agree
                  that as of the first anniversary of the date hereof,
                  Retrocessionaire shall pay to Retrocedant the difference, if
                  any, between the amount of EBUB as of the Effective Time and
                  the aggregate amount subsequently billed and paid to and/or
                  retained by Retrocedant prior to that date with respect to
                  EBUB as of the Effective Time, it being understood that
                  Retrocedant shall bear all risk of non-payment and
                  non-collectibility with respect to premiums written and
                  unearned as of the Effective Date and subsequently billed. All
                  amounts, if any, in respect of EBUB which are in excess of
                  EBUB as of the Effective Time, calculated pursuant to the
                  first sentence of this Section 4.1(D), shall be for the
                  account of Retrocessionaire and no such amounts shall be
                  retained by or payable to Retrocedant.

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

         (A)      On the Effective Date, in respect of the Section B
                  (Prospective) Coverage Period, Retrocedant shall transfer to
                  Retrocessionaire an aggregate amount representing the sum of
                  all amounts related and specifically allocated to each
                  individual Class of Business (the "Initial Section B Premium")
                  equal to the carrying value on the books of Retrocedant as of
                  September 30, 2002, of one hundred percent (100%) of the
                  unearned premium reserves, net of unearned ceding commission
                  and brokerage fees and net of Inuring Retrocession premiums as
                  provided for in Section 7.4 in each case relating to the
                  Reinsurance Contracts, determined in accordance with statutory
                  accounting principles on a basis consistent in all material
                  respects with the methods,

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                  principles, practices and policies employed in the preparation
                  and presentation of Retrocedant's annual statutory financial
                  statement as of 31 December 2001 as filed with the Financial
                  Services Authority (consistent with the methods, principles,
                  practices and policies applied at June 30, 2002) and as
                  submitted to The St. Paul.

         (B)      On the 90th day following the Effective Date (or if such 90th
                  day is not a Business Day, the first Business Day following
                  such 90th day), Retrocedant shall prepare and deliver to
                  Retrocessionaire an accounting (the "Proposed Premium Reserve
                  Accounting", together with the Proposed Loss Reserve
                  Accounting, the "Proposed Accounting") of all unearned premium
                  reserves relating to the Reinsurance Contracts, as of the
                  Effective Date, determined in accordance with statutory
                  accounting principles on a basis consistent in all material
                  respects with the methods, principles, practices and policies
                  employed in the preparation and presentation of Retrocedant's
                  annual statutory financial statement as of 31 December 2001 as
                  filed with the Financial Services Authority (consistent with
                  the methods, principles, practices and policies applied at
                  June 30, 2002) and as submitted to The St. Paul, relating to
                  the Reinsurance Contracts, net of the unearned ceding
                  commission and net of Inuring Retrocession premiums as
                  provided for in Section 7.4 and as allocated pursuant to
                  Exhibit E (the "Final Section B Premium"). In the event the
                  Final Section B Premium for any individual Class of Business
                  is greater than the Initial Section B Premium for such
                  individual Class of Business, Retrocedant shall promptly pay
                  to the account of Retrocessionaire the difference plus
                  interest on such amount at the Applicable Rate from and
                  including the Effective Date to and including the date of such
                  payment. In the event the Initial Section B Premium for any
                  individual Class of Business is greater than the Final Section
                  B Premium for such individual Class of Business,
                  Retrocessionaire shall promptly pay to the account of
                  Retrocedant the difference plus interest on such amount at the
                  Applicable Rate from and including the Effective Date to and
                  including the date of such payment.

         (C)      Retrocedant shall transfer to Retrocessionaire with respect to
                  all Reinsurance Contracts, one hundred percent (100%) of all
                  gross premiums written on or after the Effective Time, net of
                  premium returns, allowances and cancellations and less any
                  applicable Retrocedant Ceding Commission and Inuring
                  Retrocession premiums as provided for in Section 7.4 and as
                  allocated pursuant to Exhibit F, provided, however, that all
                  premiums written arising in respect of a Loss Occurrence (as
                  such term is defined in the Reinsurance Contract) occurring
                  prior to 1st January, 2002, including reinstatement premiums,
                  loss share premiums and penalty premiums, shall be for the
                  account of Retrocedant.

         (D)      Retrocedant shall retain all gross premiums written on or
                  after the Effective Time attributable to losses arising from
                  the Excluded Losses, including but not limited to adjusted
                  premiums, portions of reinstatement premiums and other
                  adjustments attributable to such losses.

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4.3      DISPUTE RESOLUTION.

         (A)      After receipt of the Proposed Accounting, together with the
                  work papers used in preparation thereof, Retrocessionaire
                  shall have 30 days (the "Review Period") to review such
                  Proposed Accounting. Unless Retrocessionaire delivers written
                  notice to Retrocedant on or prior to the 30th day of the
                  Review Period stating that it has material objections to the
                  Proposed Accounting for one or more Classes of Business or the
                  Final Ceding Commission Reserves, Retrocessionaire shall be
                  deemed to have accepted and agreed to the Proposed Accounting
                  and the Final Ceding Commission Reserves. Retrocessionaire
                  shall not object to any method, principle, practice or policy
                  employed in the preparation of the Proposed Accounting if such
                  method, principle, practice or policy is consistent in all
                  material respects with that employed in the preparation and
                  presentation of Retrocedant's statutory annual financial
                  statement as of 31 December 2001, as filed with the Financial
                  Services Authority and as submitted to The St. Paul, it being
                  understood that Retrocessionaire reserves the right to object
                  to the appropriateness of a particular application or manner
                  of application of any such method, principle, practice or
                  policy. If Retrocessionaire so notifies Retrocedant of any
                  material objection(s) to the Proposed Accounting or the Final
                  Ceding Commission Reserves, the parties shall in good faith
                  attempt to resolve, within 30 days (or such longer period as
                  the parties may agree) following such notice (the "Resolution
                  Period"), their differences with respect to such material
                  objections related to any Class of Business so identified.
                  Retrocedant and Retrocessionaire agree that only those Classes
                  of Business (or the Final Ceding Commission Reserves, if
                  applicable) to which such notification relates shall be
                  subject to adjustment, and any resolution by them as to any
                  disputed amounts, as evidenced by a writing signed by both
                  parties, shall be final, binding and conclusive.

                  In the event that Retrocessionaire believes that Loss Reserves
                  for a Class of Business need to be increased beyond the amount
                  implied by the algorithm set forth in Exhibit C, or the Final
                  Ceding Commission Reserves need to be reduced,
                  Retrocessionaire and Retrocedant will endeavor to agree on an
                  appropriate adjustment. If the two parties cannot agree on an
                  adjustment, Retrocedant may elect to (i) retain the
                  liabilities and the associated Loss Reserves for the subject
                  Class of Business and all unearned premium and
                  Retrocessionaire shall transfer to Retrocedant all Initial
                  Section A Premium and Initial Section B Premium paid by
                  Retrocedant for the subject Class of Business, plus interest
                  on the average amount at the Applicable Rate from the
                  Effective Date to the date of such transfer, or (ii) extend
                  the time period for adjusting the reserve to as much as 36
                  months or (iii) choose to arbitrate according to Section
                  4.3(B), it being understood that arbitration according to
                  Section 4.3(b) shall be the sole remedy for disputes regarding
                  the Final Ceding Commission Reserves. In the event that
                  Retrocedant chooses to extend the time period for adjusting
                  the reserves for a Class of Business, Retrocedant retains the
                  exposure to

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                  adverse loss development and Retrocessionaire will suffer no
                  exposure to paid losses in excess of the Initial Section A
                  Premium and Initial Section B Premium paid by Retrocedant. At
                  the end of the extended period, any continued disagreement
                  between Retrocedant and Retrocessionaire would be submitted to
                  arbitration as set forth in Section 4.3(B) hereto.

         (B)      Any amount remaining in dispute at the conclusion of the
                  Resolution Period for which Retrocedant has not elected the
                  remedies set forth in Section 4.3(A)(i) and (ii) above or as
                  to which any extension period has elapsed without agreement
                  between the parties ("Unresolved Changes") shall be submitted
                  to arbitration. One arbiter (each arbiter, an "Arbiter") shall
                  be chosen by Retrocedant, the other by Retrocessionaire, and
                  an umpire (the "Umpire") shall be chosen by the two Arbiters
                  before they enter upon arbitration. In the event that either
                  party should fail to choose an Arbiter within 30 days
                  following a written request by the other party to do so, the
                  requesting party may choose two Arbiters, but only after
                  providing 10 days' written notice of its intention to do so
                  and only if such other party has failed to appoint an Arbiter
                  within such 10 day period. The two Arbiters shall in turn
                  choose an Umpire who shall act as the Umpire and preside over
                  the hearing. If the two Arbiters fail to agree upon the
                  selection of an Umpire within 30 days after notification of
                  the appointment of the second Arbiter, the selection of the
                  Umpire shall be made by the A.I.D.A. Reinsurance and Insurance
                  Arbitration Society of the UK ("ARIAS UK"). All Arbiters and
                  Umpires shall be active or retired disinterested
                  property/casualty actuaries of insurance or reinsurance
                  companies or Lloyd's of London Underwriters.

         (C)      Each party shall present its case to the Arbiters within 30
                  days following the date of appointment of the Umpire, unless
                  the parties mutually agree to an extension of time. Subject to
                  the provisions of paragraph (f) of this Section 4.3, the
                  decision of the Arbiters shall be final and binding on both
                  parties; but failing to agree, they shall call in the Umpire
                  and the decision of the majority shall be final and binding
                  upon both parties. Judgment upon the final decision of the
                  Arbiters may be entered in any court of competent
                  jurisdiction.

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

         (E)      Any arbitration proceedings shall take place in London,
                  England unless the parties agree otherwise.

         (F)      Once the Proposed Accounting has been finalized in accordance
                  with the above process, the Final Section A Premium and the
                  Final Section B Premium amounts shall be as set forth in the
                  Proposed Accounting, as determined by the Arbiters, if
                  applicable (the "Arbitrated Final Section A Premium" and/or
                  "Arbitrated Final Section B Premium", as the case may be). In
                  the event the

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                  sum of the Arbitrated Final Section A Premium and the
                  Arbitrated Final Section B Premium amounts (determined in
                  accordance with the first sentence of this Section 4.3(f)) is
                  greater than the amount paid by Retrocedant to
                  Retrocessionaire on the Effective Date, Retrocedant shall
                  promptly pay to the account of Retrocessionaire the difference
                  plus interest on such amount at the Applicable Rate from and
                  including the Effective Date to and including the date of such
                  payment. In the event the sum of such amounts (determined in
                  accordance with the first sentence of this Section 4.3(f)) is
                  lower than the amount paid by Retrocedant to Retrocessionaire
                  on the Effective Date, Retrocessionaire shall promptly pay to
                  the account of Retrocedant the difference plus interest on
                  such amount at the Applicable Rate from the Effective Date to
                  the date of such payment.

         (G)      It is understood that the dispute resolution provisions set
                  forth in this Section 4.3 represent the exclusive remedy for
                  disputes arising between the parties with respect to the
                  Proposed Accounting and that the dispute mechanisms set forth
                  in Section 15 shall be the exclusive remedy for all disputes
                  not relating to the Proposed Accounting.

5.       RETROCEDANT CEDING COMMISSION

         With respect to the Reinsurance Contracts, Retrocessionaire shall pay
         to Retrocedant a ceding commission (the "RETROCEDANT CEDING
         COMMISSION") with respect to the Section B (Prospective) Coverage
         Period, and such Retrocedant Ceding Commission shall equal 100 percent
         (100%) of the actual expenses incurred in writing each Reinsurance
         Contract, including actual ceding commissions and brokerage fees, as
         determined in accordance with Retrocedant's customary practices and
         procedures and as submitted to The St. Paul, all as allocable pro rata
         to periods from and after the Effective Time. Retrocedant Ceding
         Commissions shall also include all underwriting fees and other costs
         and expenses paid by Retrocedant pursuant to the Agency Agreement
         between Retrocedant and Platinum Re (UK) Limited, dated as of the date
         hereof, and all underwriting and other expenses incurred by Retrocedant
         on or after the Effective Date with respect to the liabilities
         transferred hereunder, as determined in accordance with Retrocedant's
         customary practices and procedures.

6.       ORIGINAL CONDITIONS

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

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7.       INURING RETROCESSIONS

7.1      ALLOCATION TO RETROCESSIONAIRE

         Retrocedant agrees that the retrocession contracts purchased by the
         reinsurance division of The St. Paul ("ST. PAUL RE") from third party
         retrocessionaires ("THIRD PARTY RETROCESSIONAIRES") on behalf of
         Retrocedant prior to the Effective Time that are listed on Exhibit C
         hereto shall inure to the benefit of Retrocessionaire to the extent of
         liabilities covered under this Agreement ("INURING RETROCESSIONS"),
         subject to the agreed allocations in Exhibits D, E and F. It is further
         understood and agreed that facultative reinsurance not listed on
         Exhibit C but relating to the Reinsurance Contracts shall also inure to
         the benefit of Retrocessionaire to the extent of liabilities covered
         under this Agreement and shall be considered Inuring Retrocessions
         under this Agreement.

7.2      TRANSFER

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

7.3      INURING RETROCESSIONS CLAIMS

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

<PAGE>

                                       11

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

7.4      INITIAL CONSIDERATION

         To the extent not already reflected in the calculation of Final Section
         B Premium, as part of the Section B (Prospective) Coverage Period
         premiums described in Section 4.2, Retrocessionaire shall reimburse
         Retrocedant for one hundred percent (100%) of any and all unearned
         premiums paid by Retrocedant under such Inuring Retrocessions net of
         any applicable unearned ceding commissions paid to Retrocedant
         thereunder.

7.5      ADDITIONAL CONSIDERATION

         Retrocessionaire agrees to pay under the Inuring Retrocessions all
         future premiums Retrocedant is obligated to pay pursuant to the terms
         of the Inuring Retrocessions to the extent that such premiums are
         allocable to Retrocessionaire in the manner set forth in Exhibit E
         hereto, and not otherwise paid by Retrocessionaire and to indemnify
         Retrocedant for all such premiums paid directly by Retrocedant, net of
         any ceding commissions and similar amounts paid by Third Party
         Retrocessionaires to Retrocedant.

7.6      TERMINATION AND COMMUTATION OF INURING RETROCESSIONS

         (A)      With respect to any Inuring Retrocessions providing coverage
                  solely with respect to the Reinsurance Contracts, Retrocedant
                  agrees, on behalf of itself and its affiliates, that
                  Retrocedant shall not take any action or fail to take any
                  action that would reasonably result in the termination or
                  commutation of or any material change in the coverage provided
                  by any Inuring Retrocession, without the prior written consent
                  of the Retrocessionaire, such consent not to be unreasonably
                  withheld.

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

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

         (A)      Retrocessionaire shall be liable for one hundred percent
                  (100%) of all future loss, loss adjustment expenses, incurred
                  but not reported losses and other payment obligations that
                  arise (including ceding commissions, as and to the

<PAGE>

                                       12

                  extent determined in Article IV) under the Reinsurance
                  Contracts on and after January 1, 2002 and are payable as of
                  or after the Effective Time and shall reimburse Retrocedant
                  for any losses, loss adjustment expenses and other payment
                  obligations paid by Retrocedant following the Effective Time
                  in respect of the Reinsurance Contracts, net of any recoveries
                  received by Retrocedant with respect thereto, including
                  recoveries under Inuring Retrocessions. Retrocessionaire shall
                  have the right to all salvage and subrogation on the account
                  of claims and settlements with respect to the Reinsurance
                  Contracts.

         (B)      In the event of a claim under a Reinsurance Contract, the
                  Retrocedant will assess the validity of the claim and make a
                  determination as to payment, consistent with the claims
                  handling guidelines previously provided to Retrocedant in
                  writing by Retrocessionaire and Retrocessionaire may exercise
                  its rights under Section 10.1 in respect thereof. Retrocedant
                  shall provide prompt notice of any claim in excess of $500,000
                  to Retrocessionaire. All payments made by Retrocedant, whether
                  under strict contract terms or by way of compromise, shall be
                  binding on Retrocessionaire. In addition, if Retrocedant
                  refuses to pay a claim in full and a legal proceeding results,
                  Retrocessionaire will be unconditionally bound by any
                  settlement agreed to by Retrocedant or the adverse judgment of
                  any court or arbitrator (which could include any judgment for
                  bad faith, punitive damages, excess policy limit losses or
                  extra contractual obligations) and Retrocedant may recover
                  with respect to such settlements and judgments under this
                  Agreement. Though Retrocedant will settle such claims and
                  litigation in good faith, Retrocessionaire is bound to accept
                  the settlements paid by Retrocedant and such settlements may
                  be for amounts that could be greater than the amounts that
                  would be agreed to by Retrocessionaire if Retrocessionaire
                  were to settle such claims or litigation directly. It is the
                  intent of this Agreement that Retrocessionaire shall in every
                  case in which this Agreement applies and in the proportions
                  specified herein, "follow the fortunes" of Retrocedant in
                  respect of risks Retrocessionaire has accepted under this
                  Agreement.

9.       EXTRA CONTRACTUAL OBLIGATIONS

         In the event Retrocedant or Retrocessionaire is held liable to pay any
         punitive, exemplary, compensatory or consequential damages because of
         alleged or actual bad

         faith or negligence related to the handling of any claim under any
         Reinsurance Contract or otherwise in respect of such Reinsurance
         Contract, the parties shall be liable for such damages in proportion to
         their responsibility for the conduct giving rise to the damages. Such
         determination shall be made by Retrocedant and Retrocessionaire, acting
         jointly and in good faith, and in the event the parties are unable to
         reach agreement as to such determination, recourse shall be had to
         Section 15 hereof.

<PAGE>

                                       13

10.      ADMINISTRATION OF REINSURANCE CONTRACTS

10.1     ADMINISTRATION

         (A)      The parties agree that, as of the Effective Time, Retrocedant
                  shall have the sole authority to administer the Reinsurance
                  Contracts in all respects, which authority shall include, but
                  not be limited to, authority to bill for and collect premiums,
                  adjust all claims and handle all disputes thereunder and to
                  effect any and all amendments, commutations and cancellations
                  of the Reinsurance Contracts, subject, however, in the case of
                  administration of claims, to all claims handling guidelines
                  provided in advance in writing by Retrocessionaire to
                  Retrocedant. Retrocedant shall not, on its own, settle any
                  claim, waive any right, defense, setoff or counterclaim
                  relating to the Reinsurance Contracts with respect to amounts
                  in excess of $500,000 or make any ex gratia payments, and
                  shall not amend, commute or terminate any of the Reinsurance
                  Contracts, in each case without the prior written consent of
                  Retrocessionaire.

         (B)      Notwithstanding the foregoing, to the extent permitted by law
                  Retrocessionaire may, at its discretion and at its own
                  expense, assume the administration, defence and settlement of
                  any claim upon prior written notice to Retrocedant. Upon
                  receipt of such notice, Retrocedant shall not compromise,
                  discharge or settle such claim except with the prior written
                  consent of Retrocessionaire. Retrocessionaire shall not take
                  any action in the administration of such claim that would
                  reasonably be expected to adversely affect Retrocedant, its
                  business or its reputation, without the prior written consent
                  of Retrocedant. Subject to the terms of Section 9 hereof,
                  Retrocessionaire shall indemnify Retrocedant for all Losses,
                  including punitive, exemplary, compensatory or consequential
                  damages arising from such assumption of the conduct of such
                  settlement pursuant to Section 14 herein.

10.2     REPORTING AND REGULATORY MATTERS

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

10.3     DUTY TO COOPERATE

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

<PAGE>

                                       14

10.4     COMMUNICATIONS RELATING TO THE REINSURANCE CONTRACTS

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

11.      REPORTS AND REMITTANCES

11.1     REPORT FROM RETROCEDANT

         Within thirty days following the end of each month, Retrocedant shall
         provide Retrocessionaire with a summary statement of account for the
         previous month showing all activity relating to each of the Reinsurance
         Contracts, including related administration costs and expenses incurred
         by Retrocedant, consisting of the categories of information set forth
         in Exhibit G hereto. The monthly statement of account shall also
         provide a breakdown of any amounts due to Retrocedant or
         Retrocessionaire, as the case may be, as reimbursement for paid claims,
         collected premiums or other amounts due pursuant to the terms of this
         Agreement, including amounts relating to Inuring Retrocessions.

11.2     REMITTANCES

         Within ten Business Days after delivery of each monthly report pursuant
         to Section 11.1, Retrocedant and Retrocessionaire shall settle all
         amounts then due under this Agreement for that month. It is agreed that
         Retrocedant shall retain all premiums received arising from all
         business written for which the first day of the original cedant's
         account period occurs prior to the Effective Date until such time as
         such aggregate amount of such premiums received equals the net amount
         to be retained by Retrocedant pursuant to Section 4.01(D) and 4.02(B)
         herein, after which time, such premiums shall be remitted by
         Retrocedant to Retrocessionaire.

11.3     LATE PAYMENTS

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

<PAGE>

                                       15

11.4     COST REIMBURSEMENT

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

11.5     CURRENCY

         For purposes of this Agreement, where Retrocedant receives premiums or
         pays losses in currencies other than United States dollars, GBP or
         Euros, such premiums or losses shall (subject to the consent of
         Retrocessionaire, not to be unreasonably withheld or delayed) be
         converted into United States dollars at the actual rates of exchange at
         which these premiums or losses are entered in Retrocedant's books.

12.      MAINTENANCE OF LICENSES

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

13.      ACCESS TO RECORDS

13.1     From and after the Closing Date, Retrocedant shall afford to
         Retrocessionaire and its respective authorized accountants, counsel and
         other designated representatives (collectively, "Representatives")
         reasonable access (including using commercially reasonable best efforts
         to give access to Persons possessing information) during normal
         business hours to all data and information that is specifically
         described in writing (collectively, "Information") within the
         possession of Retrocedant relating to the liabilities transferred
         hereunder, insofar as such information is reasonably required by
         Retrocessionaire. Similarly, from and after the Closing Date,
         Retrocessionaire shall afford to Retrocedant, any Post-closing
         Subsidiary of Retrocedant and their respective Representatives
         reasonable access (including using commercially reasonable best efforts
         to give access to Persons possessing information) during normal
         business hours to Information within Retrocessionaire's possession
         relating to Retrocedant, insofar as such information is reasonably
         required by Retrocedant. Information may be requested under this
         Section 13 for, without limitation, audit, accounting, claims,
         litigation (other than any claims or litigation between the parties
         hereto) and tax purposes, as well as for purposes of fulfilling
         disclosure and reporting obligations and for performing this Agreement
         and the transactions contemplated hereby.

13.2     From and after the Closing Date, Retrocessionaire and Retrocedant or
         their designated representatives may inspect, at the place where such
         records are located, any and all data and information that is
         specifically described in writing within the possession of the other
         party hereto reasonably relating to this Agreement, on reasonable prior
         notice and during normal business hours. The rights of the parties
         under this Section 13 shall survive termination of this Agreement and
         shall continue for as long as there may be liabilities under the
         Reinsurance Contracts or reporting or retention requirements under
         applicable law. In addition, each party shall have the right to take
         copies (including

<PAGE>

                                       16

         electronic copies) of any information held by the other party that
         reasonably relates to this Agreement or the Reinsurance Contracts. Each
         party shall, and shall cause its designated representatives to, treat
         and hold as confidential information any information it receives or
         obtains pursuant to this Section 13.

14.      INDEMNIFICATION

14.1     INDEMNIFICATION BY RETROCEDANT

         Retrocedant agrees to indemnify, defend and hold harmless
         Retrocessionaire, and its officers, directors and employees with
         respect to any and all Losses arising from any breach by Retrocedant of
         any representation, warranty or covenant herein. Retrocedant further
         agrees to indemnify, defend and hold harmless Retrocessionaire and its
         officers, directors and employees against any and all Losses arising
         out of Retrocedant's administration of the Reinsurance Contracts,
         including but not limited to extracontractual obligations, payments in
         excess of policy limits and settlements made in respect of any such
         claims to the extent arising from the gross negligence or wilful
         misconduct of Retrocedant except to the extent such actions are taken
         with the prior consent or direction of Retrocessionaire. Such
         indemnification obligations shall be limited to the aggregate of all
         fees paid to Retrocedant pursuant to Section 11.4 hereof.

14.2     INDEMNIFICATION BY RETROCESSIONAIRE

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

14.3     INDEMNIFICATION PROCEDURES

         (A)      If a party seeking indemnification pursuant to this Section 14
                  (each, an "INDEMNITEE") receives notice or otherwise learns of
                  the assertion by a Person (including, without limitation, any
                  governmental entity) who is not a party to this Agreement or
                  an Affiliate thereof, of any claim or of the commencement by
                  any such Person of any Action (a "THIRD PARTY CLAIM") with
                  respect to which the party from whom indemnification is sought
                  (each, an "INDEMNIFYING PARTY") may be obligated to provide
                  indemnification pursuant to Section 14.1 or 14.2, such
                  Indemnitee shall give such Indemnifying Party written notice
                  thereof promptly after becoming aware of such Third Party
                  Claim; provided that the failure of any Indemnitee to give
                  notice as provided in this Section 14.3 shall not relieve the
                  Indemnifying Party of its obligations under this Section 14,
                  except to the extent that such Indemnifying Party is
                  prejudiced by such failure to give

<PAGE>

                                       17

                  notice. Such notice shall describe the Third Party Claim in as
                  much detail as is reasonably possible and, if ascertainable,
                  shall indicate the amount (estimated if necessary) of the Loss
                  that has been or may be sustained by such Indemnitee.

         (B)      An Indemnifying Party may elect to defend or to seek to settle
                  or compromise, at such Indemnifying Party's own expense and by
                  such Indemnifying Party's own counsel, any Third Party Claim.
                  Within 30 days of the receipt of notice from an Indemnitee in
                  accordance with Section 14.3(A) (or sooner, if the nature of
                  such Third Party Claim so requires), the Indemnifying Party
                  shall notify the Indemnitee of its election whether the
                  Indemnifying Party will assume responsibility for defending
                  such Third Party Claim, which election shall specify any
                  reservations or exceptions. After notice from an Indemnifying
                  Party to an Indemnitee of its election to assume the defense
                  of a Third Party Claim, such Indemnifying Party shall not be
                  liable to such Indemnitee under this Section 14 for any legal
                  or other expenses (except expenses approved in writing in
                  advance by the Indemnifying Party) subsequently incurred by
                  such Indemnitee in connection with the defense thereof;
                  provided that, if the defendants in any such claim include
                  both the Indemnifying Party and one or more Indemnitees and in
                  any Indemnitee's reasonable judgment a conflict of interest
                  between one or more of such Indemnitees and such Indemnifying
                  Party exists in respect of such claim or if the Indemnifying
                  Party shall have assumed responsibility for such claim with
                  reservations or exceptions that would materially prejudice
                  such Indemnitees, such Indemnitees shall have the right to
                  employ separate counsel to represent such Indemnitees and in
                  that event the reasonable fees and expenses of such separate
                  counsel (but not more than one separate counsel for all such
                  Indemnitees reasonably satisfactory to the Indemnifying Party)
                  shall be paid by such Indemnifying Party. If an Indemnifying
                  Party elects not to assume responsibility for defending a
                  Third Party Claim, or fails to notify an Indemnitee of its
                  election as provided in this Section 14, such Indemnitee may
                  defend or (subject to the remainder of this Section 14) seek
                  to compromise or settle such Third Party Claim at the expense
                  of the Indemnifying Party.

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

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

<PAGE>

                                       18

                  compromise, and shall otherwise cooperate in a reasonable
                  manner in the defense, settlement or compromise of such Third
                  Party Claim.

         (E)      Notwithstanding anything in this Section 14 to the contrary,
                  neither an Indemnifying Party nor an Indemnitee may settle or
                  compromise any claim over the objection of the other; provided
                  that consent to settlement or compromise shall not be
                  unreasonably withheld or delayed. If an Indemnifying Party
                  notifies the Indemnitee in writing of such Indemnifying
                  Party's desire to settle or compromise a Third Party Claim on
                  the basis set forth in such notice (provided that such
                  settlement or compromise includes as an unconditional term
                  thereof the giving by the claimant or plaintiff of a written
                  release of the Indemnitee from all liability in respect
                  thereof) and the Indemnitee shall notify the Indemnifying
                  Party in writing that such Indemnitee declines to accept any
                  such settlement or compromise, such Indemnitee may continue to
                  contest such Third Party Claim, free of any participation by
                  such Indemnifying Party, at such Indemnitee's sole expense. In
                  such event, the obligation of such Indemnifying Party to such
                  Indemnitee with respect to such Third Party Claim shall be
                  equal to (i) the costs and expenses of such Indemnitee prior
                  to the date such Indemnifying Party notifies such Indemnitee
                  of the offer to settle or compromise (to the extent such costs
                  and expenses are otherwise indemnifiable hereunder) plus (ii)
                  the lesser of (A) the amount of any offer of settlement or
                  compromise which such Indemnitee declined to accept and (B)
                  the actual out-of-pocket amount such Indemnitee is obligated
                  to pay subsequent to such date as a result of such
                  Indemnitee's continuing to pursue such Third Party Claim.

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

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

14.4     SURVIVAL

         This Section 14 shall survive termination of this Agreement.

<PAGE>

                                       19

15.      ARBITRATION

15.1     All disputes and differences arising under or in connection with this
         Agreement shall be referred to arbitration under the Arbitration Rules
         of ARIAS UK.

15.2     The Arbitration Tribunal shall consist of three arbitrators, one to be
         appointed by the claimant party, one to be appointed by the respondent
         party and the third to be appointed by the two appointed arbitrators.

15.3     The third member of the Tribunal shall be appointed as soon as
         practicable (and no later than 28 days) after the appointment of the
         two party-appointed arbitrators. The Tribunal shall be constituted upon
         the appointment of the third arbitrator.

15.4     The Arbitrators shall be persons (including those who have retired)
         with not less than ten years' experience of insurance or reinsurance
         within the industry or as lawyers or other professional advisers
         serving the industry.

15.5     Where a party fails to appoint an arbitrator within 14 days of being
         called upon to do so or where the two party-appointed arbitrators fail
         to appoint a third within 28 days of their appointment, then upon
         application ARIAS (UK) will appoint an arbitrator to fill the vacancy.
         At any time prior to the appointment by ARIAS (UK) the party or
         arbitrators in default may make such appointment.

15.6     The Tribunal may in its sole discretion make such orders and directions
         as it considers to be necessary for the final determination of the
         matters in dispute. The Tribunal shall have the widest discretion
         permitted under the law governing the arbitral procedure when making
         such orders or directions.

15.7     The seat of arbitration shall be London.

15.8     Each party shall bear the expense of its own arbitrator and shall share
         equally with the other party the expense of the third arbitrator and of
         the arbitration.

15.9     This Section 15 shall survive termination of this Agreement.

16.      INSOLVENCY

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

16.2     It is agreed, however, that the liquidator, receiver, conservator or
         statutory successor of Retrocedant shall give written notice to
         Retrocessionaire of the pendency of a claim against Retrocedant
         indicating the Reinsurance Contract, which claim would involve a

<PAGE>

                                       20

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

16.3     As to all reinsurance made, ceded, renewed or otherwise becoming
         effective under this Agreement, the reinsurance shall be payable as set
         forth above by Retrocessionaire to Retrocedant or to its liquidator,
         receiver, conservator or statutory successor, except (i) where the
         Reinsurance Contracts specifically provide another payee in the event
         of the insolvency of Retrocedant, and (ii) where Retrocessionaire, with
         the consent of the reinsured or reinsureds under the Reinsurance
         Contracts, has assumed such Reinsurance Contract obligations of
         Retrocedant as direct obligations of Retrocessionaire to the payees
         under such Reinsurance Contracts and in substitution for the
         obligations of the Retrocedant to such payees.

16.4     For the purposes of this section 16, an insolvency event shall occur
         if:

         (A)      (i)      a winding up petition is presented in respect of
                           Retrocedant or a provisional liquidator is appointed
                           over it or if Retrocedant goes into administration,
                           administrative receivership or receivership or if
                           Retrocedant has a scheme of arrangement or voluntary
                           arrangement proposed in relation to all or any part
                           of its affairs; or

                  (ii)     Retrocedant goes into compulsory or voluntary
                           liquidation;

                  or, in each case, if Retrocedant becomes subject to any other
                  similar insolvency process (whether under the laws of England
                  and Wales or elsewhere); and

         (B)      Retrocedant is unable to pay its debts as and when they fall
                  due within the meaning of section 123 of the Insolvency Act
                  1986 (or any statutory amendment or re-enactment of that
                  section).

17.      OFFSET

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

<PAGE>

                                       21

18.      ERRORS AND OMISSIONS

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

19.      CREDIT FOR REINSURANCE; SECURITY

19.1     CREDIT FOR REINSURANCE

         Retrocessionaire shall take all actions reasonably necessary, if any,
         to permit Retrocedant to obtain full financial statement credit in all
         applicable jurisdictions for all liabilities assumed by the
         Retrocessionaire pursuant to this Agreement, including but not limited
         to loss and loss adjustment expense reserves, unearned premium
         reserves, reserves for incurred but not reported losses, allocated loss
         adjustment expenses and ceding commissions, and to provide the security
         required for such purpose, in a form acceptable to Retrocedant. Any
         reserves required by the foregoing in no event shall be less than the
         amounts required under the law of the jurisdiction having regulatory
         authority with respect to the establishment of reserves relating to the
         relevant Reinsurance Contracts. For purposes of this Section 19, such
         "actions reasonably necessary" may include, without limitation, the
         furnishing of a letter of credit or the establishment of a custodial or
         trust account, as permitted under applicable law, to secure the payment
         of the amounts due the Retrocedant under this Agreement.

19.2     EXPENSES

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

19.3     SECURITY

         (A)      Retrocessionaire shall establish and maintain a trust fund or
                  other security arrangement for the benefit of Retrocedant as
                  security for the obligations of Retrocessionaire under this
                  Agreement. The trust fund or other security arrangement shall
                  be in a form reasonably satisfactory to Retrocedant and shall
                  comply with such requirements (if any) as may be laid down by
                  the Financial Services Authority. It is understood that to the
                  extent Retrocessionaire provides such other security
                  arrangement reasonably satisfactory to Retrocedant,
                  Retrocessionaire shall not be required to provide a trust fund
                  under this provision. It is further understood that to the
                  extent payments are made either to Retrocedant or to an
                  affiliate of Retrocedant pursuant to such other security
                  arrangement in respect of obligations of Retrocessionaire
                  hereunder, Retrocessionaire shall be relieved of such
                  obligations to the extent of such payment.

<PAGE>

                                       22

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

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

20.      MISCELLANEOUS PROVISIONS

20.1     SEVERABILITY

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

20.2     SUCCESSORS AND ASSIGNS

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

20.3     EQUITABLE RELIEF

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

20.4     EXECUTION IN COUNTERPARTS

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

20.5     NOTICES

         All notices, requests, claims, demands and other communications
         hereunder shall be in writing and shall be deemed to have been duly
         given if delivered by hand (with receipt

<PAGE>

                                       23

         confirmed), or by facsimile (with transmission confirmed), or by
         certified mail, postage prepaid and return receipt requested, addressed
         as follows (or to such other address as a party may designate by
         written notice to the others) and shall be deemed given on the date on
         which such notice is received:

         If to Retrocedant:

         St. Paul Reinsurance Company Limited
         27 Camperdown Street
         London
         E1 8DS

         Facsimile: +44 20 7488 6345
         Attention: Company Secretary

         If to Retrocessionaire:

         Platinum Underwriters Reinsurance, Inc.
         195 Broadway,
         New York, New York 10007
         Facsimile: 001 212 238 9202
         Attention: Chief Financial Officer

20.6     WIRE TRANSFER

         All settlements in accordance with this Agreement shall be made by wire
         transfer of immediately available funds on the due date, or if such day
         is not a Business Day, on the next day which is a Business Day,
         pursuant to the following wire transfer instructions:

         For credit to Platinum Underwriters Reinsurance, Inc.
         USD Account
         Citibank
         Newcastle, Delaware
         Account Number 38660864
         Bank ABA Number 031100209

         -        GBP Account
                  Citibank
                  London
                  Account Number 10440698
                  SWIFT CITIGB2L

         -        EUR Account
                  Citibank
                  London
                  Account Number 10440701
                  SWIFT CITIGB2L

         For credit to St. Paul Reinsurance Company Limited [ ]

         -        USD Account
                  Citibank
                  London
                  Account Number 988529
                  Sort Code 18-50-08

         -        GBP Account
                  Citibank
                  London
                  Account Number 8560420
                  Sort Code 18-50-08

         -        EUR Account
                  Citibank
                  London
                  Account Number 8655197
                  Sort Code 18-50-08

         Payment may be made by cheque payable in immediately available funds in
         the event the party entitled to receive payment has failed to provide
         wire transfer instructions.

20.7     HEADINGS

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

<PAGE>

                                       24

20.8     FURTHER ASSURANCES

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

20.9     THIRD PARTY RIGHTS

         (A)      Section 14 confers a benefit on the officers, directors and
                  employees of Retrocedant and of Retrocessionaire (the "Third
                  Parties") and, subject to the remaining provisions of this
                  Section 20.9, is intended to be enforceable by the Third
                  Parties by virtue of the Contracts (Rights of Third Parties)
                  Act 1999.

         (B)      The parties to this Agreement do not intend that any term of
                  this Agreement, apart from Section 14, should be enforceable,
                  by virtue of the Contracts (Rights of Third Parties) Act 1999,
                  by any person who is not a party to this Agreement.

         (C)      Notwithstanding the provisions of Section 20.9(A) above, this
                  Agreement may be rescinded or varied in any way and at any
                  time by the parties to this Agreement without the consent of
                  any or all of the Third Parties.

20.10    AMENDMENTS; ENTIRE AGREEMENT

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

20.11    GOVERNING LAW

         This Agreement shall be governed by English law.

<PAGE>

                                       25

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

                                      ST. PAUL REINSURANCE COMPANY LIMITED

                                      By /s/ T. Mahoney
                                         -----------------------------------
                                      Name:  T. MAHONEY
                                      Title: MANAGING DIRECTOR

                                      PLATINUM UNDERWRITERS REINSURANCE,
                                      INC.

                                      By ________________________________
                                      Name:
                                      Title:

<PAGE>

                                   EXHIBIT A-1

                              Reinsurance Contracts

ST. PAUL REINSURANCE COMPANY LIMITED : NON-TRADITIONAL B1 QUOTA SHARE TREATY

SCHEDULE A- REINSURANCE CONTRACTS.

<TABLE>
<CAPTION>
Reserving Class     Genius Class     Policy Reference   Inception    Expiry             Cedant                      Title
<S>               <C>                <C>                <C>         <C>        <C>                       <C>
      88          88 Non Trad Intl     003102011FXP     18/05/01    31/03/04   Transatlantic Re Co *AC*  TRC 1st Property Risk Retro
      88          88 Non Trad Intl     003103011FXP     18/05/01    31/03/04   Transatlantic Re Co *AC*  TRC 2nd Property Risk Retro
</TABLE>

                                       A-1

<PAGE>

                                   EXHIBIT A-2

                       Loss Reserves by Class of Business

         None.

                                       A-2

<PAGE>

                                    EXHIBIT B

                                  Loss Reserves

Loss Reserves shall consist of loss and loss adjustment expense reserves,
including incurred but not reported loss and loss adjustment expense reserves as
of the Effective Time with respect to premium earned on the Reinsurance
Contracts net of retrocessional recoverables under the Inuring Retrocessions,
Loss Reserves shall not include any loss and loss adjustment expense reserves or
ceding commission reserves relating to Excluded Losses. Aggregate Loss Reserves
as of June 30, 2002 are set forth on Exhibit A-1.

             Methodology for Calculation of Final Section A Premium

It is understood that the Loss Reserve analysis will be performed by
Retrocessionaire's employees under the direction of Retrocedant and reviewed by
Retrocedant's employees.

Excluding catastrophes, the IBNR component of Loss Reserves will be booked, by
Class of Business, to the planned IBNR. Planned IBNR is determined using the
Bornhuetter-Ferguson methodology, using the planned loss ratio (adjusted for the
difference between actual and planned commission and brokerage) as the initial
expected loss ratio and the development pattern used for the class in the
September 30, 2002 analysis. In the case of a Class of Business where the
expected reported losses are less than 75% of the expected ultimate losses, as
per the loss development patterns in use as of September 30, 2002, the IBNR will
not be less than that amount needed to produce an ultimate loss ratio equal to
the ultimate plan loss ratio (adjusted for the difference between actual and
planned commission and brokerage).

In addition to the above, known large events and catastrophe variances from plan
as of the Effective Date will be added to the ultimate losses. Subsequent
adjustments to the reserves for known large events and catastrophe variances
from plan in the 90 days following the Effective Date could be upward or
downward.

          Calculation Methodology for Earned But Not Yet Billed Premium

Earned But Not Yet Billed Premium shall equal estimated premiums receivable with
respect to the Reinsurance Contracts net of estimated ceding commissions and
Inuring Retrocession premiums. Earned But Not Yet Billed Premium as of September
30, 2002 is equal to $[ ].

                                       B-1

<PAGE>

                                    EXHIBIT C

                              Inuring Retrocessions

        PLATINUM RE UK / US / BERMUDA - SCHEDULE OF INURING REINSURANCE :
                          PROPORTIONAL AS AT 17/10/02

<TABLE>
<CAPTION>
 Reference                             Inception   Expiration
    No.          Name of Contract        Date         Date                 Cover
--------------------------------------------------------------------------------------------
<S>          <C>                       <C>         <C>          <C>
    1)       Worldwide Property          1/1/02     12/31/02    International Property Risk
             Excluding Japan                                    Excess of Loss & Catastrophe
                                                                Excess of Loss Business
                                                                (protects Europe)

    2)       UK/Eire Cat. XL Q.S. /      1/1/02     12/31/02    U.K. / Eire Cat. Excess
             1st & / 2nd Surplus                                of Loss Treaty Business
                                                                (protects Europe)

    3)       UK/Europe Cat. XL Quota     1/1/02     12/31/02    International Property
             Share Treaty                                       Catastrophe Excess of Loss
                                                                Business (protects Europe)

    4)       Japan Cat. XL Surplus       1/1/02     12/31/02    Japan / Japanese Islands
             Treaty                                             Property Cat. Excess of Loss
                                                                Business (protects New York
                                                                & Europe)
</TABLE>

<TABLE>
<CAPTION>
Reference
    No.          Name of Contract                Limit                 Projected Prem.       Participants    % Placed
---------------------------------------------------------------------------------------------------------------------
<S>          <C>                       <C>                         <C>                      <C>              <C>
    1)       Worldwide Property        USD 40,000,000 Aggregate    USD 9m - USD 12m [100%   Nisshin - 50%       55%
             Excluding Japan           Cession Limit               treaty estimate]         Nichido -  5%

    2)       UK/Eire Cat. XL Q.S. /    GBP 100,000,000 Aggregate   GBP 5m [100% treaty      Nisshin - 14%       29%
             1st & / 2nd Surplus       Cession Limit               estimate]                PX Re  -  10%
                                                                                            TOA Re  -  5%

    3)       UK/Europe Cat. XL Quota   GBP 75,000,000 Aggregate    GBP 3m - GBP 3.5m        Montpelier         100%
             Share Treaty              Cession Limit                                        Re    -   100%

    4)       Japan Cat. XL Surplus     USD 30,000,000 Aggregate    USD 1.2m                 PX Re - 100%       100%
             Treaty                    Cession Limit : quake USD
                                       20,000,000 Aggregate
                                       Cession Limit : windstorm
</TABLE>

                                       C-1

<PAGE>

<TABLE>
<S>          <C>                         <C>        <C>         <C>
5)           Casualty Clash Quota        1/1/96     12/31/02    Casualty Clash, Casualty
             Share                                              Contingency, Casualty Cat.
                                                                and Workers Comp. Cat. (NY)

6)           Nisshin NM Open Cover       7/1/01      6/30/02    Business in the Pacific Rim
                                                                Region from our NY,
                                                                Singapore & HK offices

7)           North America Property      4/1/02      12/1/02    North America Property
             Cat. Quota Share                                   Catastrophe business written
                                                                by NY & Chicago
</TABLE>

<TABLE>
<S>          <C>                       <C>                         <C>                <C>                <C>
5)           Casualty Clash Quota      20% Quota Share of          $  4,200,000       Auto-Owners        100%
             Share                     USD 7,500,000 any                              Ins. Co.
                                       one occurrence etc.

6)           Nisshin NM Open Cover     SGD 2,000,000               $    500,000       Nisshin F & M      100%

7)           North America Property    50% Quota Share             estimated          Montpelier Re      100%
             Cat. Quota Share                                      $ 12,500,000
</TABLE>

                                       C-2

<PAGE>

        PLATINUM RE UK / US / BERMUDA - SCHEDULE OF INURING REINSURANCE :
                         NON-PROPORTIONAL AS AT 17/10/02

<TABLE>
<CAPTION>

Reference                      Inception  Expiration
   No.      Name of Contract     Date       Date            Cover               Limit                 Retention
--------------------------------------------------------------------------------------------------------------------
<S>         <C>                <C>        <C>         <C>                     <C>                    <C>
   1a)      Marine XL (a)        5/1/01     4/30/02   Protects Europe         $  1,500,000           $ 1,000,000
                                                      XL account              L    750,000           L   500,000

   1b)      Marine XL (b)        1/1/02    12/31/02   Protects Europe         $  5,000,000           $ 5,000,000
                                                      XL account              L  2,500,000           L 2,500,000

   1c)      Marine XL (c)        1/1/02    12/31/02   Protects Europe         $  5,000,000           $10,000,000
                                                      XL account              L  2,500,000           L 5,000,000

   2a)      International       7/11/01     7/10/02   Protects Europe         $  7,500,000           $ 7,500,000
            Property Cat. XL                          Risk/Prorata/Cat.       L  5,000,000           L 5,000,000
                                                      XL business
</TABLE>

<TABLE>
Reference                                          projected
   No.      Name of Contract   Reinstatement        premium          ROL      %Placed         Participants
---------------------------------------------------------------------------------------------------------------------
<S>         <C>                <C>                 <C>              <C>       <C>        <C>
   1a)      Marine XL (a)         1 @ 100%            $   360,000   26.67%       100%    PX Re - 44.20%
                                                      L    20,000                        Lloyd's Synd. 2121 (HYL) - 10%
                                                                                         Cornhill Ins. - 33.33%
                                                                                         XL Re - 12.47%

   1b)      Marine XL (b)         2 @ 100%            $ 1,125,000   25.00%       100%    Lloyd's Synd. 1861 (BRM) - 20%
                                                      L    62,500                        QBE Intnl. London - 30%
                                                                                         Cornhill - 25%
                                                                                         Odyssey London Branch - 25%

   1c)      Marine XL (c)         2 @ 100%            $   675,000   15.00%       100%    QBE Intnl. London - 50%
                                                      L    37,500                        Cornhill - 25%
                                                                                         Odyssey London Branch - 25%

   2a)      Property Cat. XL      1 @ 100%            $   843,750   22.50%       100%    PX Re - 40%
            International                             L   562,500                        GE Frankona Re (Germany) - 20%
                                                                                         Gerling Global (UK) - 1.91%
                                                                                         Safety National Casualty Corp. - 7.61
                                                                                         Lloyd's Synd. 566 (STN) - 15.24%
                                                                                         Lloyd's Synd. 780 (BFC) - 3.81%
                                                                                         Lloyd's Synd. 2121 (HYL) - 3.81%
                                                                                         Lloyd's Synd. 2027 (COX) - 3.81%
                                                                                         Lloyd's Synd. 2010 (MMX) - 3.81%
</TABLE>

                                       C-3

<PAGE>

<TABLE>
<S>         <C>                 <C>         <C>       <C>                     <C>                <C>
2b)         International       7/11/01     7/10/02   Protects Europe         $  7,500,000       $15,000,000
            Property Cat. XL                          Risk/Prorata/Cat.       L  5,000,000       L10,000,000
                                                      XL business

2c)         International       7/11/01     7/10/02   Protects Europe         $  7,500,000       $22,500,000
            Property Cat. XL                          Risk/Prorata/Cat.       L  5,000,000       L15,000,000
                                                      XL business

3a)         Joint Risk XOL      2/13/02     2/12/03   1st layer XS 5M         $  2,500,000       $ 2,500,000
            Cover - First                             aggregate
            Layer

3b)         Joint Risk XOL      2/13/02     2/12/03   Property Risk &         $  5,000,000       $ 5,000,000
            Cover - Second                            Prorata
            Layer                                     business
                                                      (all offices)
</TABLE>

<TABLE>
<S>         <C>                   <C>            <C>           <C>          <C>     <C>
2b)         International         1 @ 100%       $ 1,162,500   31.00%       100%    PX Re - 15.66%
            Property Cat. XL                     L   775,000                        [18.91% w.e.f. 1/11/02]
                                                                                    GE Frankona Re (Germany) - 25%
                                                                                    XL Re (UK) - 15%
                                                                                    Gerling Global (UK) - 1.54%
                                                                                    Taisei F&M - 3.25% (replaced
                                                                                    @1/11/02)
                                                                                    Protective Ins. Co. - 3.25%
                                                                                    Safety National Corp. - 6.5%
                                                                                    Lloyd's Synd. 626 (IRK) - 19.23%
                                                                                    Lloyd's Synd. 566 (STN) - 7.69%
                                                                                    Lloyd's Synd. 958 (GSC) - 1.92%
                                                                                    Lloyd's Synd. 529 (SHE) - 0.96%

2c)         International         1 @ 100%       $   900,000   24.00%       100%    PX Re - 12% [14.93% w.e.f. 1/11/02]
            Property Cat. XL                     L   600,000                        GE Frankona Re (Germany) - 20%
                                                                                    XL Re (UK) - 15%
                                                                                    Gerling Global (UK) - 1.17%
                                                                                    Taisei F&M - 2.93% (replaced @
                                                                                    1/11/02)
                                                                                    Royal Bank of Canada Ins. Co. - 5.87%
                                                                                    Protective Ins. Co. - 2.93%
                                                                                    Safety National Corp. - 5.86%
                                                                                    Lloyd's Synd. 626 (IRK) - 17.5%
                                                                                    Lloyd's Synd. 566 (STN) - 6.75%
                                                                                    Lloyd's Synd. 2027 (COX) - 4.42%
                                                                                    Lloyd's Synd. 958 (GSC) - 1.76%
                                                                                    Lloyd's Synd. 529 (SHE) - 0.88%
                                                                                    Lloyd's Synd. 727 (SAM) - 2.93%

3a)         Joint Risk XOL        1 @ 100%       $   875,000   35.00%       100%    Lloyd's Synd. 566 (STN) - 25%
            Cover - First                                                           Lloyd's Synd. 780 (BFC) - 15%
            Layer                                                                   Gerling Global (UK) - 2.373%
                                                                                    XL Re - 8.898%
                                                                                    Transatlantic Re - 15%
                                                                                    Lloyd's Synd. 626 (IRK) - 5.933%
                                                                                    Lloyd's Synd. 2010 (MMX) - 4.449%
                                                                                    Lloyd's Synd. 282 (LSM) - 4.449%
                                                                                    GE Frankona - 8.898%
                                                                                    PX Re - 10%

3b)         Joint Risk XOL        1 @ 100%       $ 2,000,000   40.00%       100%    Lloyd's Synd. 566 (STN) - 10%
            Cover - Second                                                          Lloyd's Synd. 780 (BFC) - 15%
            Layer                                                                   Gerling Global (UK) - 4%
                                                                                    XL Re - 15%
                                                                                    Transatlantic Re - 20%
                                                                                    Lloyd's Synd. 2010 (MMX) - 3.50%
                                                                                    Lloyd's Synd. 282 (LSM) - 7.50%
                                                                                    GE Frankona - 15%
                                                                                    PX Re - 10%
</TABLE>

                                       C-4

<PAGE>

<TABLE>
<S>         <C>                 <C>        <C>        <C>                    <C>                 <C>
4a)         International        3/9/02      2/8/03   International           $ 20,000,000       $50,000,000
            Cat. XOL - First                          Risk/Prorata/Cat.
            Layer                                     XL (all offices)

4b)         International        3/9/02      2/8/03   International           $ 30,000,000       $70,000,000
            Cat. XOL - Second                         Risk/Prorata/Cat.
            Layer                                     XL (all offices)

5)          Satellite XL        6/12/02     6/11/03   Protects all            $ 10,000,000       $    10,000
            [Geosynchronous /                         offices. 3 satellite
            Geostationary                             warranty.
            In-Orbit                                  Covers naturally
            Reinsurance]                              occurring
                                                      phenomena in
                                                      space.

6)          Latin America &      7/1/00      6/3/06   All loss recoveries     $ 25,000,000       $15,000,000
            Caribbean ILW XOL                         on Latin America       Term Aggregate
                                                      and Caribbean          Limit - USD 75M
                                                      business subject
                                                      to USD 1 Billion
                                                      ILW

7)          Caribbean ILW XOL   11/1/01    10/31/02   Caribbean               $ 15,000,000       $   100,000
                                                      Property business
                                                      subject to an
                                                      Industry Loss of
                                                      USD1.5 Billion

8)          N.A. $10 Billion     7/1/01     6/30/02   North American          $  2,500,000       $    10,000
            ILW                                       Property business
                                                      subject to
                                                      Industry Loss of
                                                      USD 10B
</TABLE>

<TABLE>
<S>         <C>                   <C>         <C>                   <C>         <C>      <C>
4a)         International         1 @ 100%            $ 4,800,000   24.00%       100%    Lloyd's Synd. 566 (STN) - 12.5%
            Cat. XOL - First                                                             Lloyd's Synd. 780 (BFC) - 10%
            Layer                                                                        Lloyd's Synd. 282 (LSM) - 8%
                                                                                         PX Re - 8%
                                                                                         Renaissance Re - 25%
                                                                                         Di Vinci Re - 12.5%
                                                                                         Transatlantic Re - 10%
                                                                                         GE Frankona Re - 10%
                                                                                         Royal Bank of Canada - 4%

4b)         International         1 @ 100%            $ 4,500,000   15.00%       100%    Lloyd's Synd. 566 (STN) - 5%
            Cat. XOL - Second                                                            Lloyd's Synd. 780 (BFC) - 12.5%
            Layer                                                                        Lloyd's Synd. 626 (IRK) - 4.004%
                                                                                         Lloyd's Synd. 2010 (MMX) - 1.202%
                                                                                         Lloyd's Synd. 282 (LSM) - 10.01%
                                                                                         Lloyd's Synd. 1096 (RAS) - 1.602%
                                                                                         Gerling Global (UK) - 0.801%
                                                                                         PX Re - 8.007%
                                                                                         Folksamerica - 16.014%
                                                                                         Renaissance Re - 8.007%
                                                                                         Di Vinci Re - 4.004%
                                                                                         Transatlantic Re - 7.5%
                                                                                         Auto-Owners - 16.015%
                                                                                         Royal Bank of Canada - 2.667%
                                                                                         Protective - 2.667%

5)          Satellite XL                0             $   575,000    5.75%       100%    Renaissance Re - 100%
            [Geosynchronous /
            Geostationary
            In-Orbit
            Reinsurance]

6)          Latin America &                   margin -$   400,000     N/A       56.50%   Fuji F & M - 5%
            Caribbean ILW XOL                                                            Nisshin F & M - 13.5%
                                                                                         Sumitomo - 10%
                                                                                         Taisei F & M - 8%
                                                                                         Toa Re - 20%

7)          Caribbean ILW XOL        Nil              $ 3,450,000   23.00%       100%    Continental Casualty - 100%

8)          N.A. $10 Billion      1 @ 100%            $   500,000   20.00%       100%    Transatlantic Re - 100%
            ILW
</TABLE>

                                       C-5

<PAGE>

<TABLE>
<S>         <C>                  <C>       <C>        <C>                     <C>              <C>
9)          N.A. $10 Billion     8/1/01     7/31/02   North American          $  2,500,000               $ 1,000,000
            ILW                                       Property business
                                                      subject to Industry
                                                      Loss of USD 10B
10)         N.A. Property /      1/1/02    12/31/02   North American          $ 10,000,000               $   100,000
            WCA Cat $ 30B ILW                         Property and
                                                      Workers
                                                      Compensation
                                                      business subject
                                                      to ILW of USD 30
                                                      Billion
11)         N.A. Property Cat    1/5/02      1/5/03   North American          $  5,000,000               $    50,000
            $15B ILW                                  Property business
                                                      subject to ILW of
                                                      USD 15 Billion
12a)        Marine XOL - 1st     1/1/02    12/31/02   Marine business         $  5,000,000               $ 5,000,000
            layer [NY]                                for New York
                                                      Office

12b)        Marine XOL - 2nd     1/1/02    12/31/02   Marine business         $  5,000,000               $10,000,000
            layer [NY]                                for New York
                                                      Office

13)         Single Period        1/1/02    12/31/02   Covers aggregate        $200,000,000     79.4% Traditional bus.
            Accident Year                             net losses                               93.5% Non-traditional
            Aggregate XOL                             incurred on an                           business
            (Holborn)                                 ultimate accident
                                                      year basis IRO all
                                                      business written
                                                      by All offices
                                                      including
                                                      Discovery Re.

14)         Workers'             1/1/02    12/31/02   Covers Workers'         $ 50,000,000               $75,000,000
            Compensation Cat.    1/1/03    12/31/05   Compensation            $ 50,000,000               $75,000,000
            XOL (Holborn)                             treaty business

15)         Puerto Rico ILW     7/26/02     7/25/03   Property business       $ 10,000,000               $    10,000
            XOL                                       subject to an
                                                      Industry Loss of
                                                      USD 1.5 Billion
</TABLE>

<TABLE>
<S>      <C>                   <C>                 <C>           <C>          <C>     <C>
9)       N.A. $10 Billion      1 @ 100%            $   475,000   19.00%       100%    IPC Re Limited - 100%
         ILW

10)      N.A. Property /       1 @ 100%            $   420,000    4.20%       100%    Tokio Millenium Re - 100%
         WCA Cat $ 30B ILW

11)      N.A. Property Cat     1 @ 100%            $   950,000   19.00%       100%    Odyssey Re - 100%
         $15B ILW

12a)     Marine XOL - 1st      1 @ 100%            $ 1,125,052   22.50%       100%    Lloyd's Synd. 457 (WTK) - 7.5%
         layer [NY]                                                                   Cornhill - 21.5%
                                                                                      Folksamerica Re - 30%
                                                                                      Lloyd's Synd. 2 (WHS) - 20%
                                                                                      Nisshin F & M - 1%
                                                                                      XL Mid Ocean Re - 20%

12b)     Marine XOL - 2nd      1 @ 100%            $   624,982   12.50%       100%    Lloyd's Synd. 457 (WTK) - 7.5%
         layer [NY]                                                                   Cornhill - 21.5%
                                                                                      Folksamerica Re - 30%
                                                                                      Lloyd's Synd. 2 (WHS) - 20%
                                                                                      Nisshin F & M - 1%
                                                                                      XL Mid Ocean Re - 20%

13)      Single Period                             $ 4,750,000                100%    Underwriters Reinsurance - 53.75%
         Accident Year                                                                London Life & General - 25%
         Aggregate XOL                                                                PMA Reins. - 10%
         (Holborn)                                                                    Hannover Re - 9%
                                                                                      E & S Reins. - 2.25%

14)      Workers'                                  $10,000,000                100%    Swiss Re - 81.25%
         Compensation Cat.     Annual Agg.                                            Hannover - 15%
         XOL (Holborn)         Of 50M                                                 E & S Reins. - 3.75%

15)      Puerto Rico ILW         Nil               $ 1,250,000   12.50%       100%    ACE Tempest Re - 50%
         XOL                                                                          Renaissance Re - 50%
</TABLE>

                                       C-6

<PAGE>

                                    EXHIBIT D

                            Allocation of Recoveries

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

2.       Any and all loss recoveries and premium adjustments allocable to this
         contract resulting from triggering the 2002 Holborn cover will be
         allocated between The St. Paul Companies and Retrocessionaire and its
         affiliates ("Platinum Re") based on variance from plan and in
         accordance with the existing methodology shown below.

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

                                       D-1

<PAGE>

                                    EXHIBIT E

                      Allocation of Retrocessional Premiums

1.       Ceded premium allocable to this contract will be allocated between the
         parties and to the underwriting year in proportion to the earned
         subject premium. Ceding commission will be allocated in the same
         manner.

2.       Reinstatement premium allocable to this contract due in respect of
         non-proportional Inuring Retrocessions will be allocated between the
         parties in proportion to the related allocated recoverable losses.

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

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

4.       The $10 million of premium payable for 2002 under the Workers
         Compensation Catastrophe Excess of Loss $50 million excess of $75
         million Retrocession Contract will be split $1 million for Platinum Re
         and $9 million for The St. Paul Companies. Such contract has a feature
         that states that for certain unfavourable experience on the Whole
         Account Stop Loss Cover the premium on this cover could reduce by as

                                       E-1

<PAGE>

         much as $9 million. In this event the reduction in ceded premium would
         benefit The St. Paul Companies exclusively. The Platinum Re Share would
         remain at $1 million.

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

                                       E-2

<PAGE>

                                    EXHIBIT F

                              Allocation of Limits

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

                                       F-1

<PAGE>

                                    EXHIBIT G

                          Form of Retrocedant's Report

Retrocedant will provide the following information separately for each coverage
period on a monthly basis:

a)       Transaction listing at assumed policy level showing all revenue items
including booked premiums, booked acquisition costs and paid losses entered in
Retrocedant's books during the relevant accounting period.

b)       Claims listing at assumed policy level showing loss description, date
of loss, paid amount and outstanding case reserve.

c)       Listing of Inuring Retrocession amounts allocated to Retrocessionaire
during the relevant accounting period including details of non-proportional
Inuring Retrocession premiums and recoverables.

Note 1 relating to a) and b): Revenue and reserve amounts will be shown in the
accounting currency used by Retrocedant for the purposes of its own books.

Note 2 relating to a) and b): Transaction and claims listings will include gross
amounts and proportional Inuring Retrocession amounts.

Note 3 relating to c): Retrocession amounts will be paid to Retrocessionaire
only following receipt by Retrocedant. These amounts together with any unpaid
amounts that are due to Retrocessionaire but not yet received by Retrocedant
will be included in the listing of Inuring Retrocession amounts.

                                       G-1

<PAGE>

                                    EXHIBIT H

                      Allocation of Administrative Expenses

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

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

                                     H-1

<PAGE>

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

                                           ST. PAUL REINSURANCE
                                           COMPANY LIMITED

                                           By______________________________

                                           Name:
                                           Title:

                                           PLATINUM UNDERWRITERS
                                           REINSURANCE, INC.

                                           By /s/ Michael D. Price
                                             ------------------------------

                                           Name:  Michael D. Price
                                           Title: President and Chief
                                                  Underwriting Officer<PAGE>

                                                                  EXHIBIT 10.55

                    100% QUOTA SHARE RETROCESSION AGREEMENT
                                 (TRADITIONAL)

                                 BY AND BETWEEN

                      ST. PAUL REINSURANCE COMPANY LIMITED

                                 (RETROCEDANT)

                                      and

                            PLATINUM RE (UK) LIMITED

                               (RETROCESSIONA1RE)

                         DATED AS OF 27 November, 2002

THIS QUOTA SHARE RETROCESSION AGREEMENT (this "Agreement"), effective as of
12:01 a.m. London time on the day following receipt by Retrocessionaire of
permission from the Financial Services Authority under Part IV of the Financial
Services and Markets Act 2000 to conduct reinsurance business in the United
Kingdom (such time the Effective Time" and such date the "Effective Date") is
made by and between ST. PAUL REINSURANCE COMPANY LIMITED, a United Kingdom
domiciled insurance company ("Retrocedant"), and PLATINUM RE (UK) LIMITED, a
United Kingdom domiciled insurance company ("Retrocessionaire").

All capitalised terms used but not defined herein shall have the meanings
ascribed to such terms in the Formation and Separation Agreement dated 28th
October, 2002 between Platinum Underwriters Holdings, Ltd., the ultimate parent
of Retrocessionaire, and The St. Paul Companies, Inc., the ultimate parent of
Retrocedant.

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

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

BUSINESS COVERED; EXCLUSIONS

      Retrocedant hereby obligates itself to retrocede to Retrocessionaire and
      Retrocessionaire hereby obligates itself to accept, pursuant to the terms
      of this Agreement, a one hundred percent (100%) quota share of any and all
      liabilities incurred by Retrocedant under all reinsurance and retrocession
      contracts (each, a "Reinsurance Contract") that are new or renewal
      traditional reinsurance contracts entered into by Retrocedant on or after
      the Effective Date pursuant to Clause 4.1 or Clause 4.3 of Part B of the
      UK Underwriting Agency and Underwriting Management Agreement (the "Agency
      Agreement") between Retrocedant and Retrocessionaire dated 1st November,
      2002 and that Retrocedant has consented to being retroceded to
      Retrocessionaire. No retrocession shall attach with respect to any
      contracts of reinsurance of any kind or type whatsoever issued and/or
      assumed by Retrocedant, other than the Reinsurance Contracts.

<PAGE>

TERM

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

COVERAGE

      The Coverage Period will be the period from and including the Effective
      Time through the commutation, expiration or final settlement of all
      liabilities under any of the Reinsurance Contracts.

PREMIUMS AND COMMISSION

      Retrocedant shall transfer to Retrocessionaire with respect to all
      Reinsurance Contracts, one hundred percent (100%) of all gross premiums
      written on or after the Effective Time, net of premium returns, allowances
      and cancellations and less any applicable Retrocedant Ceding Commission
      and Inuring Retrocession premiums.

RETROCEDANT CEDING COMMISSION

      With respect to the Reinsurance Contracts, Retrocessionaire shall pay to
      Retrocedant a ceding commission (the "RETROCEDANT CEDING COMMISSION"), and
      such Retrocedant Ceding Commission shall equal 100 percent (100%) of the
      actual expenses incurred in writing each Reinsurance Contract, including
      actual ceding commissions and brokerage fees, as determined in accordance
      with Retrocedant's customary practices and procedures and as submitted to
      The St. Paul Companies, Inc., all as allocable pro rata to periods from
      and after the Effective Time. Retrocedant Ceding Commission shall also
      include all underwriting fees and other costs and expenses paid by
      Retrocedant pursuant to the Agency Agreement between Retrocedant and
      Retrocessionaire, and all underwriting and other expenses incurred by
      Retrocedant on or after the Effective Time with respect to the liabilities
      transferred hereunder, as determined in accordance with Retrocedant's
      customary practices and procedures.

ORIGINAL CONDITIONS

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

INURING RETROCESSIONS

ALLOCATION TO RETROCESSIONAIRE

      Retrocedant agrees that the retrocession contracts purchased by the
      reinsurance division of The St. Paul ("ST. PAUL RE") from third party
      retrocessionaires ("THIRD PARTY RETROCESSIONAIRES") on behalf of
      Retrocedant prior to the Effective Time that are listed on Exhibit A
      hereto shall inure to the benefit of Retrocessionaire to the extent of
      liabilities covered under this Agreement ("Inuring Retrocessions"),
      subject to the agreed allocations in Exhibits B, C and D. It is further
      understood and agreed that facultative and other reinsurances not listed
      on Exhibit A but relating to the Reinsurance Contracts shall also inure to
      the benefit of Retrocessionaire to the extent of liabilities covered under
      this Agreement and shall be considered Inuring Retrocessions under this
      Agreement.

                                        2
<PAGE>
INURING RETROCESSIONS CLAIMS

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

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

CONSIDERATION

      Retrocessionaire agrees to pay under the Inuring Retrocessions its share
      of all future premiums Retrocedant is obligated to pay pursuant to the
      terms of the Inuring Retrocessions to the extent that such premiums are
      allocable to Retrocessionaire in the manner set forth in Exhibit C hereto,
      and not otherwise paid by Retrocessionaire and to indemnify Retrocedant
      for all such premiums paid directly by Retrocedant, net of any ceding
      commissions and similar amounts paid by Third Party Retrocessionaires to
      Retrocedant.

TERMINATION OR COMMUTATION OF INURING RETROCESSIONS

      With respect to any Inuring Retrocessions providing coverage solely with
      respect to the Reinsurance Contracts, Retrocedant agrees, on behalf of
      itself and its affiliates, that Retrocedant shall not take any action or
      fail to take any action that would reasonably result in the termination or
      commutation of, or any material change in the coverage provided by, any
      Inuring Retrocession, without the prior written consent of the
      Retrocessionaire, such consent not to be unreasonably withheld.

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

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

      Retrocessionaire shall be liable for one hundred percent (100%) of all
      future loss, loss adjustment expenses, incurred but not reported losses
      and other payment obligations as incurred by Retrocedant under the
      Reinsurance Contracts on and after the Effective Date. Retrocessionaire
      shall have the right to all salvage and subrogation on the account of
      claims and settlements with respect to the Reinsurance Contracts.

                                       3

<PAGE>
      In the event of a claim under a Reinsurance Contract, Retrocedant will
      assess the validity of the claim and make a determination as to payment,
      consistent with the claims handling guidelines previously provided to
      Retrocedant in writing by Retrocessionaire and Retrocessionaire may
      exercise its rights under the Administration subsection in respect
      thereof. Retrocedant shall provide prompt notice of any claim in excess of
      USD500,000 or GBP325,000 to Retrocessionaire. All payments made by
      Retrocedant, whether under strict contract terms or by way of compromise,
      shall be binding on Retrocessionaire. In addition, if Retrocedant refuses
      to pay a claim in full and a legal proceeding results, Retrocessionaire
      will be unconditionally bound by any settlement agreed to by Retrocedant
      or the adverse judgment of any court or arbitrator (which could include
      any judgment for bad faith, punitive damages, excess policy limit losses
      or extra contractual obligations) and Retrocedant may recover with respect
      to such settlements and judgments under this Agreement. Though Retrocedant
      will settle such claims and litigation in good faith, Retrocessionaire is
      bound to accept the settlements paid by Retrocedant and such settlements
      may be for amounts that could be greater than the amounts that would be
      agreed to by Retrocessionaire if Retrocessionaire were to settle such
      claims or litigation directly. It is the intent of this Agreement that
      Retrocessionaire shall in every case in which this Agreement applies and
      in the proportion specified herein "follow the fortunes" of Retrocedant in
      respect of risks Retrocessionarire has accepted under this Agreement.

EXTRA CONTRACTUAL OBLIGATIONS

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

ADMINISTRATION OF REINSURANCE CONTRACTS

ADMINISTRATION

      The parties agree that, as of the Effective Time, Retrocedant shall have
      the sole authority to administer the Reinsurance Contracts in all
      respects, which authority shall include, but not be limited to, authority
      to bill for and collect premiums, adjust all claims and handle all
      disputes thereunder and to effect any and all amendments, commutations and
      cancellations of the Reinsurance Contracts, subject, however, in the case
      of administration of claims, to all claims handling guidelines provided in
      advance in writing by Retrocessionaire to Retrocedant. Retrocedant shall
      not, on its own, settle any claim, waive any right, defence, setoff or
      counterclaim relating to the Reinsurance Contracts with respect to amounts
      in excess of USD500,000 or GBP325,000 or make any ex gratia payments, and
      shall not amend, commute or terminate any of the Reinsurance Contracts, in
      each case without the prior written consent of Retrocessionaire.

      Notwithstanding the foregoing, to the extent permitted by law,
      Retrocessionaire may, at its discretion and at its own expense, assume the
      administration, defence and settlement of any claim upon prior written
      notice to Retrocedant. Upon receipt of such notice, Retrocedant shall not
      compromise, discharge or settle such claim except with the prior written
      consent of Retrocessionaire. Retrocessionaire shall not take any action in
      the administration of such claim that would reasonably be expected to
      adversely affect Retrocedant, its business or its reputation, without the
      prior written

                                        4

<PAGE>

      consent of Retrocedant. Subject to the terms of the Extra Contractual
      Obligations Section hereof, Retrocessionaire shall indemnify Retrocedant
      for all Losses, including punitive, exemplary, compensatory or
      consequential damages arising from such assumption of the conduct of such
      settlement pursuant to the Indemnification Section herein.

REPORTING AND REGULATORY MATTERS

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

DUTY TO COOPERATE

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

COMMUNICATIONS RELATING TO THE REINSURANCE CONTRACTS

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

REPORTS AND REMITTANCES

REPORT FROM RETROCEDANT

      Within 30 days after the close of each month, Retrocedant shall provide
      Retrocessionaire with a summary statement of account for the previous
      month showing all activity relating to each of the Reinsurance Contracts,
      including related administration costs and expenses incurred by
      Retrocedant, consisting of the categories of information set forth in
      Exhibit E hereto. The monthly statement of account shall also provide a
      breakdown of any amounts due to Retrocedant or Retrocessionaire, as the
      case may be, as reimbursement for paid claims, collected premiums or other
      amounts due pursuant to the terms of this Agreement, including amounts
      relating to Inuring Retrocessions.

REMITTANCES

      Within ten Business Days after delivery of each monthly report pursuant to
      the Report subsection of this Section, Retrocedant and Retrocessionaire
      shall settle all amounts then due under this Agreement for that month.

LATE PAYMENTS

      Should any payment due any party to this Agreement be received by such
      party after the due date for such payment under this Agreement, interest
      shall accrue from the date on which such payment was due until payment is
      received by the party entitled thereto, at an annual rate equal to the
      London Interbank Offered Rate quoted for six month periods as reported in
      The Wall Street Journal on the first Business Day of the

                                       5

<PAGE>

      month in which such payment first becomes due plus one hundred basis
      points (the "Applicable Rate").

COST REIMBURSEMENT

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

CURRENCY

      For purposes of this Agreement, where Retrocedant receives premiums or
      pays losses in currencies other than United States dollars, GBP or Euros,
      such premiums or losses shall be converted into GBP at the actual rates of
      exchange at which these premiums or losses are entered in the
      Retrocedant's books.

MAINTENANCE OF LICENSES

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

ACCESS TO RECORDS

      From and after the Effective Date, Retrocedant shall afford to
      Retrocessionaire and its respective authorized accountants, counsel and
      other designated representatives (collectively, "REPRESENTATIVES")
      reasonable access (including using commercially reasonable best efforts to
      give access to Persons possessing information) during normal business
      hours to all data and information that is specifically described in
      writing (collectively, "INFORMATION") within the possession of Retrocedant
      relating to the liabilities transferred hereunder, insofar as such
      information is reasonably required by Retrocessionaire. Similarly, from
      and after the Effective Date, Retrocessionaire shall afford to
      Retrocedant, any Post-closing Subsidiary of Retrocedant and their
      respective Representatives reasonable access (including using commercially
      reasonable best efforts to give access to Persons possessing information)
      during normal business hours to Information within Retrocessionaire's
      possession relating to Retrocedant, insofar as such information is
      reasonably required by Retrocedant. Information may be requested under
      this Section for, without limitation, audit, accounting, claims,
      litigation (other than any claims or litigation between the parties
      hereto) and tax purposes, as well as for purposes of fulfilling disclosure
      and reporting obligations and for performing this Agreement and the
      transactions contemplated hereby.

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

                                        6

<PAGE>

INDEMNIFICATION

INDEMNIFICATION BY RETROCEDANT

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

 INDEMNIFICATION BY RETROCESSIONAIRE

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

INDEMNIFICATION PROCEDURES

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

      (b)   An Indemnifying Party may elect to defend or to seek to settle or
            compromise, at such Indemnifying Party's own expense and by such
            Indemnifying Party's own counsel, any Third Party Claim. Within 30
            days of the receipt of notice from an indemnitee in accordance with
            subsection (a) of this Section (or sooner, if the nature of such
            Third Party Claim so requires), the indemnifying Party shall notify
            the Indemnitee of its election whether the Indemnifying Party will
            assume responsibility for defending such Third Party Claim, which
            election shall specify any reservations or exceptions. After notice
            from an Indemnifying Party to an Indemnitee of its election to
            assume the defence of a Third Party Claim, such Indemnifying Party
            shall not be

                                        7

<PAGE>

            liable to such Indemnitee under this Section for any legal or other
            expenses (except expenses approved in writing in advance by the
            Indemnifying Party) subsequently incurred by such Indemnitee in
            connection with the defence thereof; provided that, if the
            defendants in any such claim include both the Indemnifying Party and
            one or more Indemnitees and in any Indemnitee's reasonable judgment
            a conflict of interest between one or more of such Indemnitees and
            such Indemnifying Party exists in respect of such claim or if the
            Indemnifying Party shall have assumed responsibility for such claim
            with reservations or exceptions that would materially prejudice such
            Indemnitees, such Indemnitees shall have the right to employ
            separate counsel to represent such Indemnitees and in that event the
            reasonable fees and expenses of such separate counsel (but not more
            than one separate counsel for all such Indemnitees reasonably
            satisfactory to the Indemnifying Party) shall be paid by such
            Indemnifying Party. If an Indemnifying Party elects not to assume
            responsibility for defending a Third Party Claim, or fails to notify
            an Indemnitee of its election as provided in this Section, such
            Indemnitee may defend or (subject to the remainder of this Section)
            seek to compromise or settle such Third Party Claim at the expense
            of the Indemnifying Party.

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

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

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

                                       8

<PAGE>

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

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

SURVIVAL

      This Indemnification Section shall survive termination of this Agreement.

ARBITRATION

      All disputes and differences arising under or in connection with this
      Agreement shall be referred to arbitration under the Arbitration Rules of
      the A.I.D.A. Reinsurance and Insurance Arbitration Society of the UK
      ("ARIAS (UK)").

      The Arbitration Tribunal shall consist of three arbitrators, one to be
      appointed by the claimant party, one to be appointed by the respondent
      party and the third to be appointed by the two appointed arbitrators.

      The third member of the Tribunal shall be appointed as soon as practicable
      (and no later than 28 days) after the appointment of the two
      party-appointed arbitrators. The Tribunal shall be constituted upon the
      appointment of the third arbitrator.

      The Arbitrators shall be persons (including those who have retired) with
      not less than ten years' experience of insurance or reinsurance within the
      industry or as lawyers or other professional advisers serving the
      industry.

      Where a party fails to appoint an arbitrator within 14 days of being
      called upon to do so or where the two party-appointed arbitrators fail to
      appoint a third within 28 days of their appointment, then upon application
      ARIAS (UK) will appoint an arbitrator to fill the vacancy. At any time
      prior to appointment by ARIAS (UK) the party or arbitrators in default may
      make such appointment.

      The Tribunal may in its sole discretion make such orders and directions as
      it considers to be necessary for the final determination of the matters in
      dispute. The Tribunal shall have the widest discretion permitted under the
      law governing the arbitral procedure when making such orders or
      directions.

      The seat of arbitration shall be London.

      Each party shall bear the expense of its own arbitrator and shall share
      equally with the other party the expense of the third arbitrator and of
      the arbitration.

      This Arbitration Section shall survive termination of this Agreement.

INSOLVENCY

      In the event of the insolvency of Retrocedant, this reinsurance shall be
      payable directly to Retrocedant, or to its liquidator, receiver,
      conservator or statutory

                                        9

<PAGE>

      successor on the basis of the liability of Retrocedant without diminution
      because of the insolvency of Retrocedant or because the liquidator,
      receiver, conservator or statutory successor of Retrocedant has failed to
      pay all or a portion of any claim.

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

      As to all reinsurance made, ceded, renewed or otherwise becoming effective
      under this Agreement, the reinsurance shall be payable as set forth above
      by Retrocessionaire to Retrocedant or to its liquidator, receiver,
      conservator or statutory successor, except (i) where the Reinsurance
      Contracts specifically provide another payee in the event of the
      insolvency of Retrocedant, and (ii) where Retrocessionaire, with the
      consent of the reinsured or reinsureds under the Reinsurance Contracts,
      has assumed such Reinsurance Contract obligations of Retrocedant as direct
      obligations of Retrocessionaire to the payees under such Reinsurance
      Contracts and in substitution for the obligations of the Retrocedant to
      such payees.

      For the purposes of this Section, "insolvency of Retrocedant" shall occur
      if:

      (i)   a winding up petition is presented in respect of Retrocedant or a
            provisional liquidator is appointed over it or if Retrocedant goes
            into administration, administrative receivership or receivership or
            if Retrocedant has a scheme of arrangement or voluntary arrangement
            proposed in relation to all or any part of its affairs; or

      (ii)  Retrocedant goes into compulsory or voluntary liquidation; or

      (iii) Retrocedant becomes subject to any other similar insolvency process
            (whether under the laws of England and Wales or elsewhere); and

      Retrocedant is unable to pay its debts as and when they fall due within
      the meaning of Section 123 of the Insolvency Act 1986 (or any statutory
      amendment or reenactment of that section).

OFFSET

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

ERRORS AND OMISSIONS

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

                                       10

<PAGE>

SECURITY

      As a condition precedent to this Agreement becoming effective,
      Retrocessionaire shall execute:

      (i)   the custodian and investment accounting agreement with State Street
            Bank and Trust Company ("CUSTODIAN") in the form attached as Exhibit
            G hereto (the "CUSTODY AGREEMENT");

      (ii)  the control agreement between Retrocedant, Retrocessionaire and
            Custodian in the form attached as Exhibit H hereto (the "CONTROL
            AGREEMENT");

      (iii) the discretionary investment advisory agreement with Alliance
            Capital Management L.P. ("INVESTMENT MANAGER") in the form attached
            as Exhibit I hereto (the "INVESTMENT ADVISORY AGREEMENT"); and

      (iv)  the security agreement, pursuant to which Retrocessionaire grants a
            continuing first priority security interest in collateral accounts
            established with Custodian pursuant to the Custody Agreement, in
            the form attached as Exhibit J hereto (the "SECURITY AGREEMENT"):

      Retrocessionaire undertakes to notify Retrocedant in writing immediately
      upon becoming aware of the occurrence of a Relevant Event under the
      Security Agreement.

MISCELLANEOUS PROVISIONS

SEVERABILITY

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

SUCCESSORS AND ASSIGNS

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

EQUITABLE RELIEF

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

EXECUTION IN COUNTERPARTS

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

                                       11
<PAGE>

NOTICES

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

      If to Retrocedant:

      St. Paul Reinsurance Company Limited
      27 Camperdown Street
      London
      El 8DS
      Facsimile:  + 44 20 7488 6345
      Attention:  Company Secretary

      If to Retrocessionaire:

      Platinum Re (UK) Limited
      52, Lime Street,
      London, EC3M 7NL
      Facsimile:  020 7623 6610
      Attention:  Company Secretary

WIRE TRANSFER

      All settlements in accordance with this Agreement shall be made by wire
      transfer of immediately available funds on the due date, or if such day is
      not a Business Day, on the next day which is a Business Day, pursuant to
      the following wire transfer instructions:

      For credit to Platinum Re (UK) Limited
      USD Account
      Citibank, London
      Account Number 10445312
      SORT CODE 18-50-08

      GBP Account
      Citibank, London
      Account Number 10445320
      SORT CODE 18-50-08

      EUR Account
      Citibank, London
      Account Number 10445339
      SORT CODE 18-50-08

      For credit to St. Paul Reinsurance Company Limited
      USD Account
      Citibank, London
      Account Number 988529
      SORT CODE 18-50-08

      GBP Account
      Citibank, London
      Account Number 8560420
      SORT CODE 18-50-08

                                       12

<PAGE>

      EUR Account
      Citibank, London
      Account Number 8655197
      SORT CODE 18-50-08

      Payment may be made by cheque payable in immediately available funds in
      the event the party entitled to receive payment has failed to provide wire
      transfer instructions.

HEADINGS

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

FURTHER ASSURANCES

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

THIRD PARTY RIGHTS

      The Indemnification Section of this Agreement confers a benefit on the
      officers, directors and employees of Retrocedant and of Retrocessionaire
      (the "THIRD PARTIES") and, subject to the remaining provisions of this
      Section, is intended to be enforceable by the Third Parties by virtue of
      the Contracts (Rights of Third Parties) Act 1999.

      The parties to this Agreement do not intend that any term of this
      Agreement, apart from the indemnification Section, should be enforceable,
      by virtue of the Contracts (Rights of Third Parties) Act 1999, by any
      person who is not a party to this Agreement.

      Notwithstanding the foregoing provisions of this Third Party Rights
      Section, this Agreement may be rescinded or varied in any way and at any
      time by the parties to this Agreement without the consent of any or all
      of the Third Parties.

AMENDMENTS; ENTIRE AGREEMENT

      This Agreement may be amended only by written agreement of the parties.
      This Agreement, together with the Custody Agreement, the Control
      Agreement, the Investment Advisory Agreement, the Security Agreement and
      the Agency Agreement, supersedes all prior discussions and written and
      oral agreements and constitutes the sole and entire agreement between the
      parties with respect to the subject matter hereof.

GOVERNING LAW

      This Agreement shall be governed by English law.

                                       13
<PAGE>

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

                                        ST. PAUL REINSURANCE COMPANY
                                        LIMITED

                                        By /s/ T. Mahoney
                                          ----------------------------------
                                          Name: T. Mahoney
                                          Title: Managing Director

                                        PLATINUM RE (UK) LIMITED

                                        By /s/ G.R. Butler
                                          -----------------------------------
                                          Name: G.R. Butler
                                          Title: Finance Director

<PAGE>

                                    EXHIBIT A

                              Inuring Retrocessions

FER 17/10/02

Platinum Re Inuring Reinsurance 17 10 02.xls

 PLATINUM RE UK / US / BERMUDA - SCHEDULE OF INURING REINSURANCE: PROPORTIONAL

      AS AT 17/10/02

<TABLE>
<CAPTION>
Reference   Name of      Inception  Expiration
   No.      Contract        Date        Date          Cover                 Limit         Projected Prem.   Participants    % Placed
   ---      --------        ----        ----          -----                 -----         ---------------   ------------    --------
<S>         <C>          <C>        <C>          <C>                   <C>                <C>               <C>             <C>
   1)       Worldwide      1/1/02    12/31/02    International         USD 40,000,000     USD 9m - USD      Nisshin - 50%      55%
            Property                             Property Risk         Aggregate Cession  12m [100% treaty  Nichido - 5%
            Excluding                            Excess of Loss &      Limit              estimate]
            Japan                                Catastrophe Excess
                                                 of Loss Business
                                                 (projects Europe)

   2)       UK/Eire Cat.   1/1/02    12/31/02    U.K./Eire Cat.Excess  GBP 100,000,000    GBP 5m [100%      Nisshin - 14%      29%
            XL Q.S./                             of Loss Traty         Aggregate Cession  treaty estimae]   PX Re - 10%
            1st &/2nd                            Business (protects    Limit                                TOA Re - 5%
            Surplus                              Europe)

   3)       UK/Europe      1/1/02    12/31/02    International         GBP 75,000,000     GBP 3m - GBP      Montpeller Re-    100%
            Cat. XL                              Property              Aggregate Cession  3.5M              100%
            Quota Share                          Catastrophe Excess    Limit
            Treaty                               of Loss Business
                                                 (protects Europe)

   4)       Japan Cat.     1/1/02    12/31/02    Japan/Japanese        USD 30,000,000     USD 1.2m          PX Re - 100%      100%
            XL Surplus                           Islands Property      Aggregate Cession
                                                 Cat. Excess of        Limit:
                                                 Loss Business         quake USD
                                                 (protects New         20,000,000
                                                 York & Europe)        Aggregate Cession
                                                                       Limit: windstorm
</TABLE>

                                      J-1

<PAGE>

<TABLE>
<S>        <C>             <C>       <C>         <C>                   <C>                <C>               <C>              <C>
   5)      Casualty        1/1/96    12/31/02    Casualty Clash        20% Quota Share    $4,200,000        Auto-Owners      100%
           Clash                                 Casualty              of USD 7,500,000                     Ins. Co.
           Quota                                 Contingency,          any one
           Share                                 Casualty Cat.         occurrence
                                                 and Workers           etc.
                                                 Comp. Cat. (NY)

</TABLE>

                                      J-2

<PAGE>

FER 17/10/02

Platinum Reiuring Reinsurance 17 10 02.xls

 PLATINUM RE UK / US / BERMUDA - SCHEDULE OF INURING REINSURANCE :
 NON-PROPORTIONAL

      AS AT 17/10/02

<TABLE>
<CAPTION>
Reference   Name of    Inception   Expiration                                                                          Projected
   No.      Contract      Date        Date           Cover                Limit          Retention     Reinstatement     Premium
   ---      --------      ----        ----           -----                -----          ---------     -------------     -------
<S>         <C>        <C>         <C>         <C>                   <C>               <C>             <C>           <C>
  1a)       Marine        5/5/01    4/30/02    Protects XL Europe       $1,500,000         $1,000,000     1 @ 100%        $360,000
            XL(a)                              Account              (pound)750,000     (pound)500,000                (pound)20,000
</TABLE>

<TABLE>
<CAPTION>
Reference
   No.       ROL     % Placed           Participants
   ---       ---     --------           ------------
<S>          <C>     <C>        <C>
  1a)        26.67%     100%     Px re - 44.20%
                                 Lloyd's Synd. 2121 (HYL) - 10%
                                 Cornhill Ins. - 33.33%
                                 XL Re - 12.47%
</TABLE>

<TABLE>
<CAPTION>
<S>         <C>        <C>         <C>        <C>                  <C>               <C>               <C>            <C>
  1b)       Marine     1/1/02      12/31/02   Protects XL Europe        $5,000,000         $5,000,000     2 @ 100%       $1,125,000
            XL (b)                            Account             (pound)2,500,000   (pound)2,500,000                 (pound)62,500
</TABLE>

<TABLE>
<CAPTION>
<S>          <C>     <C>         <C>
  1b)        25.00%     100%     Lloyd's Synd. 1861 (BRM) - 20%
                                 QBE Intnl. London - 30%
                                 Cornhill - 25%
                                 Odyssey London Branch - 25%
</TABLE>

<TABLE>
<CAPTION>
<S>         <C>        <C>         <C>        <C>                  <C>               <C>               <C>            <C>
  1c)       Marine     1/1/02      12/31/02   Protects XL Europe        $5,000,000        $10,000,000     2 @ 100%         $675,000
            XL (c)                            Account             (pound)2,500,000   (pound)5,000,000                 (pound)37,500
</TABLE>

<TABLE>
<CAPTION>
<S>          <C>     <C>         <C>
  1c)        15.00%     100%     QBE Intnl. London - 50%
                                 Cornhill - 25%
                                 Odyssey London Branch - 25%
</TABLE>

<TABLE>
<CAPTION>
<S>         <C>        <C>         <C>        <C>                     <C>                 <C>            <C>             <C>
  3a)       Joint      2/13/02     2/12/03    1st layer XS 5M         $2,500,000          $2,500,000        1 @ 100%       $875,000
            Risk                              aggregate,
            XOL
            Cover -
            First
            Layer

</TABLE>

<TABLE>
<CAPTION>
<S>          <C>     <C>         <C>
  3a)        35.00%     100%     Lloyd's Synd. 566 (STN) - 25%
                                 Lloyd's Synd. 780 (BFC) - 15%
                                 Gerling Global (UK) - 2.373%
                                 XL Re - 8.898%
                                 Transatlantic Re - 15%
                                 Lloyd's Synd. 626 (IRK) - 5.933%
                                 Lloyd's Synd. 2010 (MMX) - 4.449%
                                 Lloyd's Synd. 282 (LSM) - 4.449%
                                 GE Frankona - 8.898%

</TABLE>

                                      J-3
<PAGE>

<TABLE>
<CAPTION>
<S>         <C>        <C>         <C>         <C>                     <C>                 <C>            <C>             <C>
  3b)       Joint      2/13/02     2/12/03     Property Risk &         $5,000,000          $5,000,000        1 @ 100%     $2,000,000
            Risk                               Prorata Business
            XOL                                (all offices)
            Cover -
            Second
            Layer

</TABLE>

<TABLE>
<CAPTION>
Reference
   No.       ROL     % Placed           Participants
----------   ---     --------           ------------
<S>          <C>     <C>         <C>
  3b)        40.00%     100%     PX Re - 10%
                                 Lloyd's Synd. 566 (STN) - 10%
                                 Lloyd's Synd. 780 (BFC) - 15%
                                 Gerling Global (UK) - 4%
                                 XL Re - 15%
                                 Transatlantic Re - 20%
                                 Lloyd's Synd. 2010 (MMX) - 3.50%
                                 Lloyd's Synd. 282 (LSM) - 7.50%
                                 GE Frankona - 15%
                                 PX Re - 10%
</TABLE>

<TABLE>
<CAPTION>
<S>         <C>        <C>         <C>         <C>                     <C>                <C>            <C>              <C>
  4a)       Interna-   3/8/02      3/7/03      International          $20,000,000         $50,000,000        1 @ 100%     $4,800,000
            tional                             Risk/Prorata/Cat.
            Cat.                               XL (all offices)
            XOL-First
            Layer

</TABLE>

<TABLE>
<CAPTION>
<S>          <C>     <C>         <C>
  4a)        24.00%     100%     Lloyd's Synd. 566 (STN) - 12.5%
                                 Lloyd's Synd. 780 (BFC) - 10%
                                 Lloyd's Synd. 282 (LSM) - 8%
                                 PX Re - 8%
                                 Renaissance Re - 25%
                                 Di Vinci Re - 12.5%
                                 Transatlantic Re - 10%
                                 GE Frankona - 10%
                                 Royan Bank of Canada - 4%
</TABLE>

<TABLE>
<CAPTION>
<S>         <C>        <C>         <C>         <C>                    <C>                 <C>            <C>              <C>
  4b)       Interna-   3/8/02      3/7/03      International          $30,000,000         $70,000,000        1 @ 100%     $4,500,000
            tional                             Risk/Prorata/Cat.
            Cat.                               XL (all offices)
            XOL-
            Second
            Layer

</TABLE>

<TABLE>
<CAPTION>
<S>          <C>     <C>         <C>
  4b)        15.00%     100%     Lloyd's Synd. 566 (STN) - 5%
                                 Lloyd's Synd. 780 (BFC) - 12.5%
                                 Lloyd's Synd. 626 (IRK) - 4.004%
                                 Lloyd's Synd. 2010 (MMX) - 1.202%
                                 Lloyd's Synd. 282 (LSM) - 10.01%
                                 Lloyd's Synd. 1096 (RAS) - 1.602%
                                 Gerling Global (UK) - 0.801%
                                 PX Re - 8.007%
                                 Folksamerica - 16.014%
                                 Renaissance Re - 8.007%
                                 Di Vinci Re - 4.004%
                                 Transatlantic Re - 7.5%
                                 Auto-Owners - 16.015%
                                 Royan Bank of Canada - 2.667%
                                 Protective - 2.667%
</TABLE>

                                      J-4
<PAGE>

<TABLE>
<S>      <C>         <C>      <C>       <C>              <C>             <C>         <C>   <C>        <C>     <C>   <C>
   7)    Caribbean   11/1/01  10/31/02  Caribbean        $15,000,000     $100,000    Nil   $3,450,00  23.00%  100%  Continental
         ILW XOL                        Property                                                                    Casualty - 100%
                                        business
                                        subject to an
                                        Industry Loss
                                        of USD 1.5
                                        Billion
</TABLE>

<TABLE>
<S>      <C>         <C>      <C>       <C>              <C>           <C>    <C>               <C>          <C>   <C>
  13)    Single      1/1/02   12/31/02  Covers           $200,000,000  79.4%  Traditonal bus.   $4,750,000   100%  Underwriters
         Period                         Aggregate                      93.5%  Non-traditional                      Reinsurance -
         Accident                       net losses                            business                             53.75%
         Year                           incurred on an                                                              London Life &
         Aggregae                       ultimate                                                                   General - 25%
         XOL                            accident year                                                              PMA Reins. 10%
         (Holborn)                      basis IRO all                                                              Hannover Re - 9%
                                        business written                                                           E & S Reins. -
                                        by All offices                                                             2.25%
                                        including
                                        Discovery Re.
</TABLE>

<TABLE>
<S>      <C>        <C>      <C>        <C>              <C>           <C>          <C>         <C>          <C>   <C>
  14)    Workers'   1/1/02   12/31/02   Covers Workers'  $50,000,000   $75,000,000              $10,000,000  100%  Swiss Re - 81.25%
         Compensa-  1/1/03   12/31/05   Compensation     $50,000,000   $75,000,000  Annual Agg.                    Hannover - 15%
         tion Cat.                      treaty business                             of 50M                         E & S Reins. -
         XOL                                                                                                       3.75%
         (Holborn)
</TABLE>

<TABLE>
<S>      <C>        <C>      <C>        <C>              <C>               <C>          <C>      <C>         <C>   <C>
  15)    Puerto     7/26/02  7/25/03    Property         $10,000,000       $10,000      Nil      $1,250,000  100%  ACE Tempest Re -
         Rico                           business                                                                   50%
         ILW XOL                        subject to an                                                              Renaissance Re -
                                        Industry Loss                                                              50%
                                        of USD 1.5
                                        Billion
</TABLE>

                                      J-5
<PAGE>

                                   EXHIBIT B

                            Allocation of Recoveries

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

2.    Any and all loss recoveries and premium adjustments allocable to this
      contract resulting from triggering the 2002 Holborn cover will be
      allocated between The St. Paul Companies and Retrocessionaire and its
      affiliates ("Platinum Re") based on variance from plan and in accordance
      with the existing methodology shown below.

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

                                      J-1
<PAGE>

                                    EXHIBIT C

                      Allocation of Retrocessional Premium

1.    Ceded premium allocable to this contract will be allocated between the
      parties and to the underwriting year in proportion to the earned subject
      premium. Ceding commission will be allocated in the same manner.

2.    Reinstatement premium allocable to this contract due in respect of
      non-proportional Inuring Retrocessions will be allocated between the
      parties in proportion to the related allocated recoverable losses.

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

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

                                       J-2

<PAGE>

                                   EXHIBIT D

                              Allocation of Limits

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

                                      J-3
<PAGE>
                                    EXH1BIT E

                          Form of Retrocedant's Report

Retrocedant will provide the following information on a monthly basis:

a)    Transaction listing at assumed policy level showing all revenue items
      including booked premiums, booked acquisition costs and paid losses
      entered in Retrocedant's books during the relevant accounting period.

b)    Claims listing at assumed policy level showing loss description, date of
      loss, paid amount and outstanding case reserve.

c)    Listing of inuring retrocession amounts allocated to Retrocessionaire
      during the relevant accounting period including details of
      non-proportional inuring retrocession premiums and recoverables.

Note 1 relating to a) and b): Revenue and reserve amounts will be shown in the
accounting currency used by Retrocedant for the purposes of its own books,

Note 2 relating to a) and b): Transaction and claims listings will include gross
amounts and proportional inuring retrocession amounts.

Note 3 relating to c): Retrocession amounts will be paid to Retrocessionaire
only following receipt by Retrocedant. These amounts together with any unpaid
amounts that are due to Retrocessionaire but not yet received by Retrocedant
will be included in the listing of inuring retrocession amounts.

                                      J-4

<PAGE>

                                   EXHIBIT F

                     Allocation of Administrative Expenses

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

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

                                      J-5
<PAGE>

                                    EXHIBIT G

                                Custody Agreement

                                       J-6
<PAGE>

                  CUSTODIAN AND INVESTMENT ACCOUNTING AGREEMENT

      THIS AGREEMENT is made as of______________________ , 2002, by and among
STATE STREET BANK AND TRUST COMPANY, A Massachusetts trust company ("STATE
STREET") and each of PLATINUM UNDERWRITERS HOLDINGS, LTD., a Bermuda company;
PLATINUM REGENCY HOLDINGS, an Irish holding company; PLATINUM UNDERWRITERS
FINANCE, INC., a Delaware corporation; PLATINUM UNDERWRITERS BERMUDA, LTD., a
Bermuda company; and PLATINUM RE (UK) LIMITED, a company organized under the
laws of England and Wales (each, a "COMPANY").

                                   WITNESSETH:

      WHEREAS, the Company is the owner of certain assets; and

      WHEREAS, the Company desires to retain State Street to act as custodian of
such assets, and State Street is willing to provide services to the Company upon
the terms and conditions hereinafter set forth;

      NOW, THEREFORE, in consideration of the mutual covenants and agreements
hereinafter contained, the parties hereto agree as follows:

SECTION 1. EMPLOYMENT OF STATE STREET AND PROPERTY TO BE HELD BY IT.

      The Company hereby employs State Street as the custodian of certain assets
held in one or more accounts (collectively, the "ACCOUNT"), including securities
which the Company desires to be held in places within the United States
("DOMESTIC SECURITIES") and securities it desires to be held outside the United
States ("FOREIGN SECURITIES"). State Street shall not be responsible for any
property of the Company not delivered to State Street. State Street shall
maintain separate books and records for the assets of each Company.

      Upon receipt of "PROPER INSTRUCTIONS" (as such term is defined in Section
4 hereof), State Street shall on behalf of the Company from time to time to
employ one or more sub-custodians located in the United States. State Street may
employ as sub-custodian for the Company's foreign securities foreign banking
institutions and foreign securities depositories, but only in accordance with
the applicable provisions of Section 3. State Street shall have no more or less
responsibility or liability to the Company on account of any actions or
omissions of any such sub-custodian so employed than any such sub-custodian has
to State Street, provided that State Street has not acted with negligence or
engaged in fraud or willful misconduct in choosing and monitoring such
sub-custodian.

SECTION 2. DUTIES OF STATE STREET With RESPECT TO PROPERTY OF THE ACCOUNT HELD
           BY STATE STREET IN THE UNITED STATES.

      Section 2.1 Holding Securities. State Street shall hold and physically
segregate for the account of the Company all non-cash property to be held by it
in the United States including all

                                       1
<PAGE>

domestic securities owned by the Company other than securities which are
maintained pursuant to Section 2.8 in a clearing agency which acts as a
securities depository or in a book-entry system authorized by the U.S.
Department of the Treasury (each, a "U.S. SECURITIES SYSTEM").

      Section 2.2 Delivery Of Securities. State Street shall release and deliver
domestic securities of the Account held by State Street or in a U.S. Securities
System account of State Street only upon receipt of Proper Instructions, which
may be continuing instructions when deemed appropriate by the parties, and only
in the following cases:

      1.    Upon sale of such securities for the account of the Company and
            receipt of payment therefore;

      2.    Upon the receipt of payment in connection with any repurchase
            agreement related to such securities entered into by the Company;

      3.    In the case of a sale effected through a U.S. Securities System, in
            accordance with the provisions of Section 2.8. hereof;

      4.    To the depository agent in connection with tender or other similar
            offers for securities of the Account;

      5.    To the issuer thereofor its agent when such securities are called,
            redeemed, retired or otherwise become payable; provided that, in any
            such case, the cash or other consideration is to be delivered to
            State Street;

      6.    To the issuer thereof, or its agent for transfer into the name of
            the Company or into the name of any nominee or nominees of State
            Street or into the name or nominee name of any agent appointed
            pursuant to Section 2.7 or into the name or nominee name of any
            sub-custodian appointed pursuant to Section 1 provided that, where
            they are not transferred into the name of the Company, State
            Street shall reflect in its books and records that the assets are
            held on behalf of the Company; or for exchange for a different
            number of bonds, certificates or other evidence representing the
            same aggregate face amount or number of units; provided that, in any
            such case, the new investments are to be delivered to State Street.

      7.    Upon the sale of such securities for the account of the Company, to
            the broker or its clearing agent, against a receipt, for examination
            in accordance with "street delivery" custom; provided that in any
            such case, State Street shall have no responsibility or liability
            for any loss arising from the delivery of such securities prior to
            receiving payment for such securities except as may arise from State
            Streets Own negligence or willful misconduct;

      8.    For exchange or conversion pursuant to any plan of merger,
            consolidation, recapitalization, reorganization or readjustment of
            the securities of the issuer of such securities. or pursuant to
            provisions for conversion contained in such

                                       2
<PAGE>

            securities, or pursuant to any deposit agreement; provided that, in
            any such case, the new securities and cash, if any, are to be
            delivered to State Street;

      9.    In the case of warrants, rights or similar securities, the surrender
            thereof in the exercise of such warrants, rights or similar
            securities or the surrender of interim receipts or temporary
            securities for definitive securities; provided that, in any such
            case, the new securities and cash, if any, are to be delivered to
            State Street;

      10.   For delivery in connection with any loans of securities made by the
            Company, but only against receipt of adequate collateral as
            agreed upon from time to time by State Street and the Company, which
            may be in the form of cash or obligations issued by the United
            States government, its agencies or instrumentalities, except that in
            connection with any loans for which collateral is to be credited to
            State Street's account in the book-entry system authorized by the
            U.S. Department of the Treasury, State Street will not be held
            liable or responsible for the delivery of securities prior to the
            receipt of such collateral;

      11.   For delivery as security in connection with any borrowings by the
            Company requiring a pledge of Account assets, but only against
            receipt of amounts borrowed;

      12.   For delivery in accordance with the provisions of any agreement
            among the Company, State Street and a broker-dealer registered under
            the Securities Exchange Act of 1934 (the "EXCHANGE ACT") and a
            member of The National Association of Securities Dealers, Inc.
            ("NASD"), relating to compliance with the rules of The Options
            Clearing Corporation and of any registered national securities
            exchange, or of any similar organization or organizations, regarding
            escrow or other arrangements in connection with transactions by the
            Company;

      13.   For delivery in accordance with the provisions of any agreement
            among the Company, State Street, and a futures commission merchant
            registered under the Commodity Exchange Act, relating to compliance
            with the rules of the Commodity Futures Trading Commission ("CFTC")
            and/or any contract market, or any similar organization or
            organizations, regarding deposits in connection with transactions by
            the Company;

      14.   For any other purpose, but only upon receipt of Proper Instructions
            from the Company, specifying the securities to be delivered, setting
            forth the purpose for which such delivery is to be made, and naming
            the person or persons to whom delivery of such securities shall be
            made.

      Section 2.3 Registration Of Securities. Domestic securities held by State
Street (other than bearer securities) shall be registered in the name of the
Company or in the name of any nominee of the Company or of any nominee of State
Street which nominee shall be assigned exclusively with respect to the Account,
or in the name or nominee name of any agent appointed

                                       3
<PAGE>

pursuant to Section 2.7 or in the name or nominee name of any sub-custodian
appointed pursuant to Section 1. All securities accepted by State Street on
behalf of the Company under the terms of this Agreement shall be in "street
name" or other good delivery form. If, however, the Company directs State Street
to maintain Account securities in "street name," State Street shall use
reasonable efforts only to timely collect income due to the Company on such
securities and to notify the Company of relevant corporate actions including.
without limitation, pendency of calls, maturities, tender or exchange offers.

      Section 2.4 Bank Accounts. State Street shall open and maintain a separate
bank account or accounts in the United States in the name of the Company,
subject only to draft or order by State Street acting pursuant to the terms of
this Agreement on behalf of the Company, and shall hold in such account or
accounts, subject to the provisions hereof, all cash received by it from or for
the Account. Funds held by State Street for the Account may be deposited by
State Street to its credit as custodian in the banking department of State
Street or in such other banks or trust companies as it may in its discretion
deem necessary or desirable. Such funds shall be deposited by State Street in
its capacity as custodian and shall be withdrawable by State Street only in that
capacity.

      Section 2.5 Collection Of Income. Subject to the provisions of Section
2.3, State Street shall collect on a timely basis all income and other payments
with respect to registered domestic securities held hereunder to which the
Company shall be entitled either by law or pursuant to custom in the securities
business, and shall collect on a timely basis all income and other payments with
respect to bearer domestic securities if, on the date of payment by the issuer,
such securities are held by State Street or its agent, and shall credit such
income, as collected, to the Account. Without limiting the generality of the
foregoing, State Street shall detach and present for payment all coupons and
other income items requiring presentation as and when they become due and shall
collect interest when due on securities held hereunder. Income due on securities
loaned pursuant to the provisions of Section 2.2(10) shall be the responsibility
of the Company. State Street will have no duty or responsibility in connection
therewith, other than to provide the Company with such information or data as
may be necessary to assist the Company in arranging for the timely delivery to
State Street of the income to which the Company is properly entitled.

      Section 2.6 Payment Of Account Monies. Upon receipt of Proper
Instructions, which may be continuing instructions when deemed appropriate by
the parties, State Street shall pay out monies in the following cases only:

      1.    Upon the purchase of domestic securities, options, futures contracts
            or options on futures contracts for the Account, but only (a)
            against the delivery of such securities or evidence of title to such
            options, futures contracts or options on futures contracts to State
            Street (or any bank, banking firm or trust company doing business in
            the United States or abroad as a custodian which has been designated
            by State Street as its agent for this purpose) registered in the
            name of the Company or in the name of a nominee of the Company or of
            State Street referred to in Section 2.3 hereof or in proper form for
            transfer; (b) in the case of a purchase

                                       4
<PAGE>

            effected through a U.S. Securities System, in accordance with the
            conditions set forth in Section 2.8 hereof; (c) in the case of
            repurchase agreements entered into between the Company and State
            Street, or another bank, or a broker-dealer which is a member of
            NASD, (i) against delivery of the securities either in certificate
            form or through an entry crediting State Street's account at the
            Federal Reserve Bank with such securities or (ii) against delivery
            of the receipt evidencing purchase by the Company of securities
            owned by State Street along with written evidence of the agreement
            by State Street to repurchase such securities from the Company; or
            (d) for transfer to a time deposit account of the Company in any
            bank, whether domestic or foreign; such transfer may be effected
            prior to receipt of a confirmation from a broker and/or the
            applicable bank pursuant to Proper Instructions from the Company as
            defined herein;

      2.    In connection with conversion, exchange or surrender of securities
            as set forth in Section 2.2 hereof;

      3.    For the payment of any expense or liability incurred by the Company,
            including but not limited to the following payments for the Account:
            interest, taxes, management, accounting, transfer agent and legal
            fees, and operating expenses thereof whether or not such expenses
            are to be in whole or part capitalized or treated as deferred
            expenses;

      4.    For payment of the amount of dividends received in respect of
            securities sold short;

      5.    For any other purpose, but only upon receipt of Proper Instructions
            from the Company specifying the amount of such payment and naming
            the person or persons to whom such payment is to be made.

      Section 2.7 Appointment Of Agents. State Street may at any time or times
in its discretion appoint (and may at any time remove) any other bank or trust
company as its agent to carry out such of the provisions of this Section 2 as
State Street may from time to time direct; provided, however, that the
appointment of any agent shall not relieve State Street of its responsibilities
or liabilities hereunder.

      Section 2.8 Deposit Of Account Assets In U.S. Securities Systems. State
Street may deposit and/or maintain securities of the Account in a U.S.
Securities System subject to the following provisions:

      1.    State Street may keep securities of the Company in a U.S. Securities
            System provided that such securities are represented in an account
            of State Street in the U.S. Securities System ("U.S. SECURITIES
            SYSTEM ACCOUNT") which account shall not include any assets of State
            Street other than assets held as a fiduciary, custodian or otherwise
            for customers;

                                       5
<PAGE>

      2.    The records of State Street with respect to securities of the
            Company which are maintained in a U.S. Securities System shall
            identify by book-entry those securities belonging to the Company;

      3.    State Street shall pay for securities purchased for the Account upon
            (a) receipt of advice from the U.S. Securities System that such
            securities have been transferred to the U.S. Securities System
            Account, and (b) the making of an entry on the records of State
            Street to reflect such payment and transfer for the Account. State
            Street shall transfer securities sold for the Account upon (a)
            receipt of advice from the U.S. Securities System that payment for
            such securities has been transferred to the U.S. Securities System
            Account, and (b) the making of an entry on the records of State
            Street to reflect such transfer and payment for the Account. Copies
            of all advices from the U.S. Securities System of transfers of
            securities for the Account shall identify the Company, be
            maintained for the Company by State Street and be provided to the
            Company at its request. Upon request, State Street shall furnish the
            Company confirmation of each transfer to or from the Account in the
            form of a written advice or notice and shall furnish to the Company
            copies of daily transaction sheets reflecting each day's
            transactions in the U.S. Securities System with respect to the
            Account;

      4.    State Street shall provide the Company with any report obtained by
            State Street on the U.S. Securities System's accounting system,
            internal accounting control and procedures for safeguarding
            securities deposited in the U.S. Securities System;

      5.    Anything to the contrary in this Agreement notwithstanding, State
            Street shall be liable to the Company for any loss or damage to the
            Company resulting from use of the U.S. Securities System by reason
            of any negligence, misfeasance or misconduct of State Street or any
            of its agents or of any of its or their employees or from failure of
            State Street or any such agent to enforce effectively such rights
            as it may have against the U.S. Securities System; at the election
            of the Company, it shall be entitled to be subrogated to the rights
            of State Street with respect to any claim against the U.S.
            Securities System or any other person which State Street may have as
            a consequence of any such loss or damage if and to the extent that
            the Company has not been made whole for any such loss or damage.

      Section 2.9 Segregated Account. State Street shall upon receipt of Proper
Instructions establish and maintain a segregated account or accounts for and on
behalf of the Company, into which account or accounts shall be transferred cash
and/or securities, including securities maintained in an account by State Street
pursuant to Section 2.8 hereof(a) in accordance with the provisions of any
agreement among the Company, State Street and a broker-dealer registered under
the Exchange Act and a member of the NASD (or any futures commission merchant
registered under the Commodity Exchange Act), relating to compliance with the
rules of The Options Clearing Corporation and of any registered national
securities exchange (or the CFTC or any registered contract market), or of any
similar organization or organizations, regarding escrow or other arrangements in
connection with transactions by the Company, (b) for purposes of

                                       6
<PAGE>

segregating cash or government securities in connection with options purchased
or sold by the Company or commodity futures contracts or options thereon
purchased or sold by the Company, and (c) for any other purpose upon receipt of
Proper Instructions from the Company.

      Section 2.10 Ownership Certificates for Tax Purposes. State Street shall
execute ownership and other certificates and affidavits for all federal and
state tax purposes in connection with receipt of income or other payments with
respect to domestic securities of the Account held by it and in connection with
transfers of securities.

      Section 2.11 Proxies. State Street shall, with respect to the domestic
securities held by it hereunder, cause to be promptly executed by the registered
holder of such securities, if the securities are registered otherwise than in
the name of the Company or a nominee of the Company, all proxies without
indication of the manner in which such proxies are to be voted, and shall
promptly deliver to the Company such proxies, all proxy so1iciting materials and
all notices received relating to such securities.

      Section 2.12 Communications Relating To Securities. Subject to the
provisions of Section 2.3, State Street shall transmit promptly to the Company
all written information (including, without limitation, pendency of calls and
maturities of domestic securities and expirations frights in connection
therewith and notices of exercise focal and put options written by the Company
and the maturity of futures contracts purchased or sold by the Company) received
by State Street from issuers of the securities being held for the Company. With
respect to tender or exchange offers, State Street shall transmit promptly to
the Company all written information received by State Street from issuers of the
securities whose tender or exchange is sought and from the party (or its agents)
making the tender or exchange offer. If the Company desires to take action with
respect to any tender offer, exchange offer or any other similar transaction,
the Company shall notify State Street at least three business days prior to the
date on which State Street is to take such action.

SECTION 3. DUTIES OF STATE STREET WITH RESPECT TO PROPERTY OF THE ACCOUNT HELD
           OUTSIDE THE UNITED STATES.

      Section 3.1 Definitions. As used throughout this Agreement, the following
capitalized terms shall have the indicated meanings:

"FOREIGN ASSETS" means any of the Company's investments (including foreign
currencies) for which the primary market is outside the United States and such
cash and cash equivalents as are reasonably necessary to effect the Company's
transactions in such investments.

"FOREIGN SECURITIES SYSTEM" means a system for the central handling of
securities or equivalent book-entries in the country where it is incorporated.
or a transnationa1 system for the central handling of securities or equivalent
book-entries.

                                       7
<PAGE>

"FOREIGN SUB-CUSTODIAN" means a foreign banking institution, including a
majority-owned or indirect subsidiary of a United States bank, bank holding
company, or a foreign branch of a United States bank.

      Section 3.2 Holding Securities. State Street shall identify on its books
as belonging to the Company the foreign securities held by each Foreign
Sub-Custodian or Foreign Securities System. State Street may hold foreign
securities for all of its customers, including the Company, with any Foreign
Sub-Custodian in an account that is identified as belonging to State Street for
the benefit of its customers, provided however, that (a) the records of State
Street with respect to foreign securities of the Company which are maintained in
such account shall identify those securities as belonging to the Company and
(b), to the extent permitted and customary in the market in which the account is
maintained, State Street shall require that securities so held by the Foreign
Sub-Custodian be held separately from any assets of such Foreign Sub-Custodian
or of other customers of such Foreign Sub-Custodian.

      Section 3.3 Foreign Securities Systems. Foreign securities shall be
maintained in a Foreign Securities System in a designated country through all
arrangements implemented by State Street or a Foreign Sub-Custodian, as
applicable, in such country.

      Section 3.4 Transactions in Foreign Custody Account.

      3.4.1 Delivery of Foreign Assets. State Street or a Foreign Sub-Custodian
shall release and deliver foreign securities of the Company held by State Street
or such Foreign Sub-Custodian, or in a Foreign Securities System account, only
upon receipt of Proper Instructions, which may be continuing instructions when
deemed appropriate by the parties, and only in the following cases:

      (i)   upon the sale of such foreign securities for the Company in
            accordance with commercially reasonable market practice in the
            country where such foreign securities are held or traded, including.
            without limitation: (A) delivery against expectation of receiving
            later payment; or (B) in the case of a sa1e effected through a
            Foreign Securities System, in accordance with the rules governing
            the operation of the Foreign Securities System;

      (ii)  in connection with any repurchase agreement related to foreign
            securities;

      (iii) to the depository agent in connection with tender or other similar
            offers for foreign securities of the Company;

      (iv)  to the issuer thereof or its agent when such foreign securities are
            called, redeemed, retired or otherwise become payable;

      (v)   to the issuer thereof, or its agent, for transfer into the name of
            State Street (or the name of the respective Foreign Sub-Custodian or
            of any nominee of State Street or such Foreign Sub-Custodian) or
            for exchange for a different number of bonds,

                                       8
<PAGE>

              certificates or other evidence representing the same aggregate
              face amount or number of units;

       (vi)   to brokers, clearing banks or other clearing agents for
              examination or trade execution in accordance with market custom;
              provided that in any such case the Foreign Sub-Custodian shall
              have no responsibility or liability for any loss arising from the
              delivery of such securities prior to receiving payment for such
              securities except as may arise from the Foreign Sub-Custodian's
              own negligence or willful misconduct;

       (vii)  for exchange or conversion pursuant to any plan of merger,
              consolidation, recapitalization, reorganization or readjustment of
              the securities of the issuer of such securities, or pursuant to
              provisions for conversion contained in such securities, or
              pursuant to any deposit agreement;

       (viii) in the case of warrants, rights or similar foreign securities, the
              surrender thereof in the exercise of such warrants, rights or
              similar securities or the surrender of interim receipts or
              temporary securities for definitive securities;

       (ix)   for delivery as security in connection with any borrowing by the
              Company requiring a pledge of assets by the Company;

       (X)    in connection with trading in options and futures contracts,
              including delivery as original margin and variation margin;

       (xi)   in connection with the lending of foreign securities; and

       (xii)  for any other purpose, but only upon receipt of Proper
              Instructions specifying the foreign securities to be delivered and
              naming the person or persons to whom delivery of such securities
              shall be made.

       3.4.2 Payment of Fund Monies. Upon receipt of Proper Instructions, which
may be continuing instructions when deemed appropriate by the parties, State
Street shall pay out, or direct the respective Foreign Sub-Custodian or the
respective Foreign Securities System to pay out, monies of the Company in the
following cases only:

       (i)    upon the purchase of foreign securities for the Company, unless
              otherwise directed by Proper Instructions, by (A) delivering money
              to the seller thereofor to A dealer therefor (or an agent for such
              seller or dealer) against expectation of receiving later delivery
              of such foreign securities; or (B) in the case of a purchase
              effected through a Foreign Securities System, in accordance with
              the rules governing the operation of such Foreign Securities
              System;

       (ii)   in connection with the conversion, exchange or surrender of
              foreign securities of the Company;

                                       9
<PAGE>

      (iii)  for the payment of any expense or liability of the Company,
             including but not limited to the following payments: interest,
             taxes, investment advisory fees, transfer agency fees, fees under
             this Agreement, legal fees, accounting fees, and other operating
             expenses;

      (iv)   for the purchase or sale of foreign exchange or foreign exchange
             contracts for the Company, including transactions executed with or
             through State Street or its Foreign Sub-Custodians;

      (v)    in connection with trading in options and futures contracts,
             including delivery as original margin and variation margin;

      (vi)   for payment of part or all of the dividends received in reflect of
             securities sold short;

      (vii)  in connection with the borrowing or lending of foreign securities;
             and

      (viii) for any other purpose, but only upon receipt of Proper Instructions
             specifying the amount of such payment and naming the person or
             persons to whom such payment is to be made.

      3.4.3 Market Conditions. Notwithstanding any provision of this Agreement
to the contrary settlement and payment for Foreign Assets received for the
account of the Company and delivery of Foreign Assets maintained for the account
of the Company may be effected in accordance with the customary established
securities trading or processing practices and procedures in the country or
market in which the transactions occurs, including, without limitation,
delivering Foreign Assets to the purchaser thereof or to a dealer therefor (or
an agent for such purchaser or dealer) with the expectation of receiving later
payment for such Foreign Assets from such purchaser or dealer.

State Street shall provide to the Company from time to time information with
respect to custody and settlement practices in countries in which State Street
employs a Foreign Sub-Custodian.

      Section 3.5 Registration of Foreign Securities. The foreign securities
maintained in the custody of a Foreign Sub-Custodian (other than bearer
securities) shall be registered in the name of the Company or in the name of
State Street or in the name of any Foreign Sub-Custodian or in the name of any
nominee of the foregoing and the Company agrees to hold any such nominee
harmless from any liability as a holder of record of such foreign securities.
State Street or a Foreign Sub-Custodian shall not be ob1igated to accept
securities on behalf of the Company under the terms of this Agreement unless the
form of such securities and the manner in which they are delivered are in
accordance with reasonable market practice.

      Section 3.6 Bank Accounts. State Street shall identify on its books as
belonging to the Company cash (including cash denominated in foreign currencies)
deposited with State Street.

                                       10
<PAGE>

Where State Street is unable to maintain, or market practice does not facilitate
the maintenance of, cash on the books of State Street, a bank account or bank
accounts shall be opened and maintained outside the United States on behalf of
the Company with a Foreign Sub-Custodian. All accounts referred to in this
Section shall be subject only to draft or order by State Street (or, if
applicable, such Foreign Sub-Custodian) acting pursuant to the terms of this
Agreement on behalf of the Company to hold cash received by or from or for the
account of the Company. Cash maintained on the books of State Street (including
its branches, subsidiaries and affiliates), regardless of currency denomination,
is maintained in bank accounts established under, and subject to the laws of,
The Commonwealth of Massachusetts.

      Section 3.7 Collection of Income. State Street shall use reasonable
commercial efforts to collect all income and other payments with respect to the
Foreign Assets held hereunder to which the Company shall be entitled and shall
credit such income, as collected, to the Company. In the event that
extraordinary measures are required to collect such income, the Company and
State Street shall consult as to such measures and as to the compensation and
expenses of State Street relating to such measures.

      Section 3.8 Shareholder Rights. With respect to the foreign securities
held pursuant to this Section 3, State Street will use reasonable commercial
efforts to facilitate the exercise of voting and other shareholder rights,
subject always to the laws, regulations and practical constraints that may exist
in the country where such securities are issued. The Company acknowledges that
local conditions, including lack of regulation, onerous procedural obligations,
lack of notice and other factors may have the effect of severely limiting the
ability of the Company to exercise shareholder rights.

      Section 3.9 Communications Relating to Foreign Securities. State Street
shall transmit promptly to the Company written information with respect to
materials received by State Street via the Foreign Sub-Custodians from issuers
of the foreign securities being held for the account of the Company (including,
without limitation, pendency of calls and maturities of foreign securities and
expirations frights in connection therewith). With respect to tender or exchange
offers. State Street shall transmit promptly to the Company written information
with respect to materials so received by State Street from issuers of the
foreign securities whose tender or exchange is sought or from the party (or its
agents) making the tender or exchange offer. State Street shall not be liable
for any untimely exercise of any tender, exchange or other right or power in
connection with foreign securities or other property of the Company at any time
held by it unless (i) State Street or the respective Foreign Sub-Custodian is in
actual possession of such foreign securities or property and (ii) State Street
receives Proper Instructions with regard to the exercise of any such right or
power, and both (i) and (ii) occur at least three business days prior to the
date on which State Street is to take action to exercise such right or power.

      Section 3.10 Liability of Foreign Sub-Custodians. Each agreement pursuant
to which State Street employs a Foreign Sub-Custodian shall, to the extent
possible, require the Foreign Sub-Custodian to exercise reasonable care in the
performance of its duties, and to indemnify, and hold harmless, State Street
from and against any loss, damage, cost, expense, liability or claim arising
out of or in connection with the Foreign Sub-Custodian's performance of such

                                       11
<PAGE>

obligations. At the Company's election, it shall be entitled to be subrogated to
the rights of State Street with respect to any claims against a Foreign
Sub-Custodian as a consequence of any such loss, damage, cost, expense,
liability or claim if and to the extent that the Company has not been made whole
for any such loss, damage, cost, expense, liability or claim.

      Section 3.11 Tax Law. State Street shall have no responsibility or
liability for any obligations now or hereafter imposed on the Company or State
Street as custodian for the Company by the tax law of the United States or of
any state or political subdivision thereof. It shall be the responsibility of
the Company to notify State Street of the obligations imposed on the Company or
State Street as custodian for the Company by the tax law of countries other than
those mentioned in the above sentence, including responsibility for withholding
and other taxes, assessments or other governmental charges, certifications and
governmental reporting. The sole responsibility of State Street with regard to
such tax law shall be to use reasonable efforts to assist the Company with
respect to any claim for exemption or refund under the tax law of counties for
which the Company has provided such information.

      Section 3.12 Liability of State Street. State Street shall be liable for
the acts or omissions of a Foreign Sub-Custodian to the same extent as set forth
with respect to sub-custodians generally in the Contract and, regardless of
whether assets are maintained in the custody of a Foreign Sub-Custodian or a
Foreign Securities System, State Street shall not be liable for any loss,
damage, cost, expense, liability or claim resulting from nationalization,
expropriation, currency restrictions, or acts of war or terrorism, or any other
loss where the Sub-Custodian has otherwise acted with reasonable care.

SECTION 4. PROPER INSTRUCTIONS.

Proper instructions as used throughout this Agreement means a writing signed or
initialed by one or more of such persons as the Company shall have from time to
time authorized. Each such writing shall set forth the specific transaction or
type of transaction involved, including a specific statement of the purpose for
which such action is requested. Oral instructions will be considered Proper
Instructions if State Street reasonably believes them to have been given by a
person authorized to give such instructions with respect to the transaction
involved. The Company shall cause all oral instructions to be confirmed in
writing. Proper Instructions may include communications effected directly
between electro-mechanical or electronic devices, provided that the Company and
State Street agree to security procedures, including but not limited to, the
security procedures selected by the Company in the Funds Transfer Operating
Guidelines attached hereto. Proper instructions may also include joint
instructions as described in the Control Agreement by and among Platinum
Underwriters Bermuda, Ltd.; Platinum Re (UK) Limited; and State Street but only
when the instructions relate to the Collateral Accounts estab1ished under the
Control Agreement.

SECTION 5. ACTIONS PERMITTED WITHOUT EXPRESS AUTHORITY.

STATE Street may in its discretion, without express authority from the Company:

                                       12
<PAGE>

      1.    Make payments to itself or others for minor expenses of handling
            securities or other similar items relating to its duties under this
            Agreement, provided that all such payments shall be accounted for to
            the Company;

      2.    Surrender securities in temporary form for securities in definitive
            form;

      3.    Endorse for collection, in the name of the Company, checks, drafts
            and other negotiable instruments; and

      4.    In general, attend to all non-discretionary details in connection
            with the sale, exchange, substitution, purchase, transfer and other
            dealings with the securities and property of the Account except as
            otherwise directed by the Company.

SECTION 6. EVIDENCE OF AUTHORITY.

State Street shall be protected in acting upon any instructions, notice,
request, consent, certificate or other instrument or paper reasonably believed
by it to be genuine and to have been properly executed by or on behalf of the
Company. State Street may receive and accept a copy of a resolution certified by
the Secretary or an Assistant Secretary of the Company ("CERTIFIED RESOLUTION")
as conclusive evidence (a) of the authority of any person to act in accordance
with such resolution or (b) of any determination or of any action by the Company
as described in such resolution, and such resolution may be considered as in
full force and effect until receipt by State Street of written notice to the
contrary.

SECTION 7. DUTIES WITH RESPECT TO ACCOUNTS AND RECORDS AND VALUATION OF ASSETS.

      Section 7.1 Accounts and Records. State Street will prepare and maintain,
under the direction of and as interpreted by Company, Company's accountants
and/or other advisors, in complete, accurate and current form certain accounts
and records with respect to portfolio transactions and as set forth on Exhibit A
hereto, and as otherwise agreed upon by the parties. Company will advise State
Street in writing of all applicable record retention requirements. State Street
will preserve such accounts and records during the term of this Agreement in the
manner and for the periods agreed upon by the parties. Company will furnish, in
writing or its electronic or digital equivalent, accurate and timely information
needed by State Street to complete such accounts and records when such
information is not readily available from generally accepted securities industry
services or publications.

      Section 7.2 Delivery of Accounts and Records. Company will turn over or
cause to be turned over to State Street all accounts and records needed by State
Street to perform its duties and responsibilities hereunder fully and properly.
State Street may rely conclusively on the completeness and correctness of such
accounts and records.

      Section 7.3 Accounts and Records Property of Company. State Street
acknowledges that all of the accounts and records maintained by State Street
pursuant hereto are the property of Company, and will be made available to
Company for inspection or reproduction within a

                                       13
<PAGE>

reasonable period of time, upon demand. State Street will assist Company's
independent auditors, or upon the prior written approval of Company, or upon
demand, any regulatory body, in any requested review of Company's accounts and
records, provided that Company will reimburse State Street for all expenses and
employee time invested in any such review outside of routine and normal periodic
reviews. Upon receipt from Company of the necessary information or instructions,
State Street will supply information from the books and records it maintains for
Company that Company may reasonably request for tax returns, questionnaires,
periodic reports to shareholders and such other reports and information requests
as Company and State Street may agree upon from time to time.

      Section 7.4 Valuation of Assets. State Street will value the Assets of the
Account in accordance with Company's Proper Instructions utilizing the
information sources designated by Company ("PRICING SOURCES") on the Price
Source and Methodology Authorization Matrix, incorporated herein by this
reference.

SECTION 8. RECORDS.

      State Street shall, at the Company's request, supply the Company with a
tabulation of securities owned by the Company and held by State Street and
shall, when requested to do so by the Company and for such compensation as shall
be agreed upon between the Company and State Street, include certificate numbers
in such tabulations. State Street may create and maintain additional records
relating to its activities and obligations under this Agreement in such manner
as shall be agreed between State Street and the Company.

SECTION 9. REPORTS TO COMPANY BY INDEPENDENT PUBLIC ACCOUNTANTS.

State Street shall provide the Company, at such times as the Company may
reasonably require, with reports by independent public accountants on the
accounting system, internal accounting control and procedures for safeguarding
securities, futures contracts and options on futures contracts, including
securities deposited and/or maintained in a U.S. Securities System or a Foreign
Securities System, relating to the services provided by State Street under this
Agreement; such reports, shall be of sufficient scope and in sufficient detail,
as may reasonably be required by the Company to provide reasonable assurance
that any material inadequacies would be disclosed by such examination, and, if
there are no such inadequacies, the reports shall so state.

SECTION 10. COMPENSATION OF STATE STREET.

State Street shall be entitled to compensation for its services and expenses in
accordance with Schedule A hereto for the term of this Agreement.

SECTION 11. RESPONSIBILITY OF STATE STREET.

So long as and to the extent that it is in the exercise of reasonable care,
State Street shall not be responsible for tile title, validity or genuineness of
any property or evidence of title thereto received by ii or delivered by it
pursuant to this Agreement and shall be held harmless in acting

                                       14
<PAGE>

upon any notice, request, consent, certificate or other instrument reasonably
believed by it to be genuine and to be signed by the proper party or parties,
including any futures commission merchant acting pursuant to the terms of a
three-party futures or options agreement. State Street shall be held to the
exercise of reasonable care in carrying out the provisions of this Agreement,
but shall be kept indemnified by and shall be without liability to the Company
for any action taken or omitted by it in good faith without negligence,
including, without limitation, acting in accordance with any Proper Instruction.
It shall be entitled to rely on and may act upon advice of counsel (who may be
counsel for the Company) on all matters, and shall be without liability for any
action reasonably taken or omitted pursuant to such advice. State Street shall
be without liability to the Company for any loss, liability, claim or expense
resulting from or caused by any factors reasonably related to the systemic risk
of holding foreign assets in a particular country including, but not limited to,
such country's political environment, economic and financial infrastructure
(including any Foreign Securities System operating in the country), prevailing
or developing custody and settlement practices, and laws and regu1ations,
app1icab1e to the safekeeping and recovery of foreign assets held in custody in
that country.

Except as may arise from State Street's own negligence or willful misconduct or
the negligence or willful misconduct of a sub-custodian or agent, State Street
shall be without liability to the Company for any loss, liability, claim or
expense resulting from or caused by: (a) events or circumstances beyond the
reasonable control of State Street or any sub-custodian or Securities System or
any agent or nominee of any of the foregoing including, without limitation, the
interruption, suspension or restriction of trading on or the closure of any
securities market, power or other mechanical or technological failures or
interruptions, computer viruses or communications disruptions, work stoppages,
natural disasters, or other similar events or acts; (b) errors by the Company or
its duly-authorized investment manager or investment advisor in their
instructions to State Street provided such instructions have been given in
accordance with this Agreement; (c) the insolvency of or acts or omissions by a
Securities System; (d) any delay or failure of any broker, agent or
intermediary, central bank or other commercially prevalent payment or clearing
system to deliver to State Street's sub-custodian or agent securities purchased
or in the remittance or payment made in connection with securities sold; (e) any
delay or failure of any company, corporation, or other body in charge of
registering or transferring securities in the name of State Street, the Company,
State Street's sub-custodians, nominees or agents or any consequential losses
arising out of such delay or failure to transfer such securities including
non-receipt of bonus, dividends and rights and other accretions or benefits; (f)
delays or inability to perform its duties due to any disorder in market
infrastructure with respect to any particular security or Securities System; and
(g) any provision of any present or future law or regu1ation or order of the
United States of America, or any state thereof, or any other country, or
political subdivision thereofor of any court of competent jurisdiction.

State Street shall be liable for the acts or omissions of a Foreign
Sub-custodian hereunder to the same extent as set forth with respect to
sub-custodians generally in this Agreement.

If the Company requires State Street to take any action with respect to
securities, which action involves the payment of money or which action may, in
the opinion of State Street, result in State Street or its nominee assigned to
the Company being liable for the payment of money or

                                       15
<PAGE>

incurring liability of some other form, the Company, as a prerequisite to
requiring State Street to take such action, shall provide indemnity to State
Street in an amount and form satisfactory to it.

If the Company requires State Street, its affiliates, subsidiaries or agents, to
advance cash or securities for any purpose (including, but not limited to,
securities settlements, foreign exchange contracts and assumed settlement) or in
the event that State Street or its nominee shall incur or be assessed any taxes,
charges, expenses, assessments, claims or liabilities in connection with the
performance of this Agreement, except such as may arise from its or its
nominee's own negligent action, negligent failure to act or willful misconduct,
any property at any time held for the account of the Company shall be security
therefor and should the Company fail to repay State Street promptly, State
Street shall be entitled to utilize available cash and to dispose of the
Company's assets to the extent necessary to obtain reimbursement.

In no event shall State Street be liable for indirect, special or consequential
damages.

SECTION 12. TERM AND TERMINATION.

This Agreement shall become effective as of the date first above written. The
initial term of this Agreement is for a period of three (3) years. Thereafter.
either Company or State Street may terminate this Agreement by notice in
writing, delivered or mailed postage prepaid, to the other party and received
not less than ninety (90) days prior to the date upon which such termination
will take effect. Upon termination hereof:

      1.    Company shall (a) pay to State Street such compensation as may be
            due as of the date of such termination and shall likewise reimburse
            State Street for its costs, expenses and disbursements; (b)
            designate a successor record keeper (which may be Company) by Proper
            Instruction; and (c) designate a successor custodian (which may be
            Company) by Proper Instruction.

      2.    Upon payment of all sums due to it from Company, State Street shall
            (a) deliver all accounts and records to the successor recordkeeper
            (or, if none, to Company) at the office of State Street; and (b)
            deliver to the successor custodian at the office of State Street,
            duly endorsed and in the form for transfer, all Assets of Company
            then held by it hereunder and shall transfer to an account of the
            successor custodian all of the Assets of Company held in any
            Securities System.

in the event that no successor custodian has been designed on or before the date
when such termination shall become effective, then State Street shall have the
right to deliver to a bank or trust company, which is a bank doing business in
the United States (including any state) of its own selection and having an
aggregate capital, surplus, and undivided profits, as shown by its last
published report, of not less than $10,000,000 all Assets held by State Street,
its agents or its sub-custodians on behalf of Company and all instruments held
by State Street, its agents or its sub-custodians relative thereto and all other
property held by it hereunder and to transfer to an account of such successor
custodian all of the Assets held in any Securities System. Thereafter, such bank
or trust company shall be the successor of State Street hereunder.

                                       16
<PAGE>

In the event that Assets remain in the possession of State Street after the date
of termination hereof owing to failure of Company to designate a successor
custodian, State Street shall be entitled to fair compensation for its services
during such period as State Street retains possession of such Assets, and the
provisions hereof relating to the duties and obligations of State Street as
custodian shall remain in full force and effect. in the event that accounts and
records remain in the possession of State Street after the date of termination
hereof for any reason other than State Street's failure to deliver the same,
State Street shall be entitled to compensation for storage thereof during such
period, and shall be entitled to destroy the same if not removed by Company
within twenty (20) days after written demand.

SECTION 13. AMENDMENT.

This Agreement may be amended by written agreement signed by the Company and
State Street at any time or from time to time.

SECTION 14. INTERPRETIVE AND ADDITIONAL PROVISIONS.

In connection with the operation of this Agreement, State Street and the Company
may from time to time agree on such provisions interpretive of or in addition to
the provisions of this Agreement as may in their joint opinion be consistent
with the general tenor of this Agreement. Any such interpretive or additional
provisions shall be in a writing signed by both parties and shall be annexed
hereto, provided that no such interpretive or additional provisions shall
contravene any applicable federal or state regulations. No interpretive or
additional provisions made as provided in the preceding sentence shall be deemed
to be an amendment of this Agreement.

SECTION 15. MASSACHUSETTS LAW TO APPLY.

This Agreement shall be construed and the provisions thereof interpreted under
and in accordance with laws of The Commonwealth of Massachusetts.

SECTION 1 6. PRIOR AGREEMENTS.

This Agreement supersedes and terminates, as of the date hereof all prior
Agreements between the Company and State Street relating to the custody of the
Company's assets.

SECTION 1 7. NOTICES.

Any notice instruction or other instrument required to be given hereunder may
be delivered in person to the offices of the parties as set forth herein during
normal business hours or delivered prepaid registered mail or by telex, cable or
telecopy to the parties at the following addresses or such other addresses as
may be notified by any party from time to time.

                                       17
<PAGE>

        1. To the Company:  Platinum Underwriters Holdings, Ltd.
                            Clarendon House
                            2 Church Street
                            Hamilton HM 11
                            Bermuda
                            Rider 17A
                            Attention: Dawna L. Ferguson
                            Telephone: 441-295-5950
                            Facsimile: 441-292-4720

                            Platinum Underwriters Bermuda, Ltd.
                            Clarendon House
                            2 Church Street
                            Hamilton HM 11
                            Bermuda
                            Attention: Dawna L. Ferguson
                            Telephone: 441-295-5950
                            Facsimile: 441-292-4720

                            Platinum Regency Holdings
                            Goodbody Secretarial Limited
                            International Financial Services Centre
                            25/28 North Wall Quay, Dublin 1
                            Ireland
                            Attention: Sarah Cleary
                            Telephone: 011-353-1-649-2000
                            Facsimile: 011-353-1-649-2649

                            Platinum Re (UK) Limited
                            52 Lime Street
                            London EC3M 7NL
                            UK
                            Attention: Guy Butler
                            Telephone: 011-44-207-220-8100
                            Facsimile: 011-44-207-623-6610

                            Platinum Underwriters Finance, Inc.
                            195 Broadway, 28th Floor
                            New York,NY 10007
                            Attention: Michael E. Lombardozzi
                            Telephone: 212-238-9547
                            Facsimile: 212-809-7565

                                       18
<PAGE>

        2.To State Street:  State Street Bank and Trust Company
                            801 Pennsylvania Avenue
                            Kansas City, MO 64105
                            Attention: Vice President, Insurance Services
                            Telephone: (816) 871-41OO
                            Facsimile: (816) 871-9675

Such notice, instruction or other instrument shall be deemed to have been served
in the case of a registered letter at the expiration of five business days after
posting, in the case of cable twenty-four hours after dispatch and, in the case
of telex, immediately on dispatch and if delivered outside normal business hours
it shall be deemed to have been received at the next time after delivery when
normal business hours commence and in the case of cable, telex or telecopy on
the business day after the receipt thereof. Evidence that the notice was
properly addressed, stamped and put into the post shall be conclusive evidence
of posting.

SECTION 18. REPRODUCTION OF DOCUMENTS.

This Agreement and all schedules, exhibits, attachments and amendments hereto
may be reproduced by any photographic, photo static, microfilm, micro-card,
miniature photographic or other similar process. The parties hereto each agree
that any such reproduction shall be admissible in evidence as the original
itself in any judicial or administrative proceeding, whether or not the original
is in existence and whether or not such reproduction was made by a party in the
regular course of business, and that any enlargement, facsimile or further
reproduction of such reproduction shall likewise be admissible in evidence.

SECTION 19. REMOTE ACCESS SERVICES ADDENDUM.

State Street and the Company agree to be bound by the terms of the Remote Access
Services Addendum attached hereto.

SECTION 20. ASSIGNMENT.

Neither this Agreement nor any rights or obligations hereunder may be assigned
by either party, whether voluntarily, involuntarily or by operation of law,
without the prior written consent of the other, such consent not to be
unreasonably withheld, except to entities controlled by, under common control
with or controlling the assigning party, provided that such assignee has
financial capacity at least equal to that of the assignor.

SECTION 21. SHAREHOLDER COMMUNICATIONS.

Securities and Exchange Commission Rule 1 4b-2 requires banks which hold
securities for the account of customers to respond to requests by issuers of
securities for the names, addresses and holdings of beneficial owners of
securities of that issuer held by the bank unless the beneficial owner has
expressly objected to disclosure of this information. In order to comply with
the rule, State Street needs the Company to indicate whether it authorizes State
Street to provide the

                                       19
<PAGE>

Company's name, address, and share position to requesting companies whose
securities are held in the Account. If the Company tells State Street "no,"
State Street will not provide this information to requesting companies. If the
Company tells State Street "yes" or does not check either "yes" or "no" below,
State Street is required by the rule to treat the Company as consenting to
disclosure of this information for all securities owned by the Company or any
funds or accounts established by the Company. For the Company's protection, the
Rule prohibits the requesting company from using the Company's name and address
for any purpose other than corporate communications. Please indicate below
whether the Company consents or objects by checking one of the alternatives
below.

            Yes |X|     State Street is authorized to release the Company's
                        name, address, and share positions.

            No  | |     State Street is not authorized to release the
                        Company's name, address, and share positions.

SECTION 22. REPRESENTATIONS AND WARRANTIES.

The Company represents and warrants to State Street that it has full capacity
and authority to enter into this Agreement and to perform its obligations under
this Agreement and it has taken all necessary action to authorize the execution,
delivery and performance by it of this Agreement.

                                       20
<PAGE>

      IN WITNESS WHEREOF, each of the parties has caused this instrument to be
executed in its name and behalf by its duly authorized representative as of the
day and year first written above. under its corporate seal.

PLANTINUM UNDERWRITERS                  PLANTINUM RE (UK) LIMITED
HOLDINGS, LTD.

By:                                     By:
   -----------------------------           -------------------------------

Name:                                   Name:
     ---------------------------             -----------------------------

Its:          ,  Duly Authorized        Its:          ,  Duly Authorized
    ----------                               ---------

PLATINUM REGENCY HOLDINGS               PLANTINUM UNDERWRITERS FINANCE, INC.

By:                                     By:
   -----------------------------           -------------------------------

Name:                                   Name:
     ---------------------------             -----------------------------

Its:          ,  Duly Authorized        Its:          ,  Duly Authorized
    ----------                              ---------

PLATINUM UNDERWRITERS BERMUA, LTD.      STATE STREET BANK AND TRUST COMPANY

By:                                     By:
   -----------------------------           -------------------------------

Name:                                   Name:
     ---------------------------             -----------------------------

Its:          ,  Duly Authorized        Its:          ,  Duly Authorized
    ----------                              ---------

                                       21
<PAGE>

                      FUNDS TRANSFER OPERATING GUIDELINES

1. OBLIGATION OF THE SENDER: State STREET Bank and Trust Company ("State
Street") is authorized to promptly debit Client's (as named below) account(s)
upon the receipt of a payment order in compliance with any of the Security
Procedures chosen by the Client, from those offered on the attached selection
form (and any updated selection forms hereafter executed by the Client), for
funds transfers and in the amount of money that State Street has been instructed
to transfer. State Street shall execute payment orders in compliance with the
delivery methods and Security Procedures indicated on the attached selection
form (and any updated section forms hereafter executed by the Client) and with
the Client's (or its investment Manager's) instructions on the execution date
provided that such payment order is received by the customary deadline for
processing such a request, unless the payment order specifies a later time.
State Street will use reasonable efforts to execute on the execution date
payment orders received after the customary deadline, but if it is unable to
execute any such payment order on the execution date, such payment order will be
deemed to have been received on the next business day.

2. SECURITY PROCEDURES: The Client acknowledges that the selected Security
Procedures were selected by the Client from Security Procedures offered by State
Street. The Client agrees that the Security Procedures are reasonable and
adequate for its wire transfer transactions and agrees to be bound by any
payment orders, amendments and cancellations, whether or not authorized, issued
in its name and accepted by State Street after being confirmed by any of the
selected Security Procedures. The Client also agrees to be bound by any other
valid and authorized payment order accepted by State Street. The Client shall
restrict access to confidential information relating to the Security Procedures
to authorized persons as communicated in writing to State Street. The Client
must notify State Street immediate1y if it has reason to believe unauthorized
persons may have obtained access to such information or of any change in the
Client's authorized personnel. State Street shall verify the authenticity of all
instructions according to the selected Security Procedures.

3. ACCOUNT NUMBERS: State Street shall process all payment orders on the basis
of the account number contained in the payment order. In the event of a
discrepancy between any name indicated on the payment order and the account
number, the account number shall take precedence and govern. Financial
institutions that receive payment orders initiated by State Street at the
instruction of the Client may also process payment orders on the basis of
account numbers, regardless of any name included in the payment order. State
Street will also rely on any financial institution identification numbers
included in any payment order, regardless of any financial institution name
included in the payment order.

4. REJECTION: State Street reserves the right to decline to process or delay the
processing of a payment order which (a) is in excess of the collected balance in
the account to be charged at the time of State Street's receipt of such payment
order; (b) if initiating such payment order would cause State Street, in State
Street's sole judgment, to exceed any applicable volume, aggregate dollar,
network, time, credit or similar limits upon wire transfers; or (c) if State
Street, in good faith, is unable to satisfy itself that the transaction has been
properly authorized.

5. CANCELLATION OR AMENDMENT: State Street shall use reasonable efforts to act
on all authorized requests to cancel or amend payment orders received in
compliance with the selected Security Procedures provided that such requests are
received in a timely manner affording State Street a reasonable opportunity to
act. However, State Street assumes no liability if the request for amendment or
cancellation cannot be satisfied.

6. ERRORS: State Street shall assume no responsibility for failure to detect any
erroneous payment order provided that State Street complies

                                       1
<PAGE>

with the payment order instructions as received and State Street complies with
the selected Security Procedures. The Security Procedures are established for
the purpose of authenticating payment orders only and not for the detection of
errors in payment orders.

7. INTEREST AND LIABILITY LIMITS: State Street shall assume no responsibility
for lost interest with respect to the refundable amount of any unauthorized
payment order, unless State Street is notified of the unauthorized payment order
within thirty (30) days of notification by State Street of the acceptance of
such payment order. In no event shall State Street be liable for special,
indirect or consequential damages, even if advised of the possibility of such
damages and even for failure to execute a payment order.

8. AUTOMATED CLEARING HOUSE ("ACH") CREDIT ENTRIES/PROVISIONAL PAYMENTS: When
the Client initiates or receives ACH credit and debit entries pursuant to these
Guidelines and the rules of the National Automated Clearing House Association,
the New England Clearing House Association and the Mid-America Payment Exchange
or other similar body, State Street or its agent will act as an Originating
Depository Financial Institution and/or Receiving Depository Financial
Institution, as the case may be, with respect to such entries. Credits given by
State Street or its agent with respect to an ACH credit entry are provisional
until final settlement for such entry is received from the Federal Reserve Bank.
If such final settlement is not received, the Client agrees to promptly refund
the amount credited to the Client in connection with such entry, and the party
making payment to the Client via such entry shall not be deemed to have paid the
amount of the entry.

9. CONFIRMATIONS: Confirmation of State Street's execution of payment orders
shall ordinarily be provided within 24 hours. Notice may be delivered through
State Street's information systems, account statements, advices, or by facsimile
or callback. The Client must report any objections to the execution of a payment
order within 30 days.

10. MISCELLANEOUS: State Street and the Client agree to cooperate to attempt to
recover any funds erroneously paid to wrong parties, regardless of any fault of
State Street or the Client, but the party responsible for the erroneous payment
shall bear all costs and expenses incurred in trying to effect such recovery.
These Guidelines may not be amended except by a written agreement signed by the
parties.

11. LIABILITY ON FOREIGN ACCOUNTS: State Street shall not be required to repay
any deposit made at a non-U.S. branch of State Street, or any deposit made with
State Street and denominated in a non-U.S. dollar currency, if repayment of
such deposit or the use of assets denominated in the non-U.S. dollar currency is
prevented, prohibited or otherwise blocked due to: (A) an act of war,
insurrection or civil strife; (b) any action by a non-U.S. government or
instrumentality or authority asserting governmental, military or police power of
any kind, whether such authority be recognized as a de facto or a de jure
government, or by any entity, political or revolutionary movement or otherwise
that usurps, supervenes or otherwise materially impairs the normal operation of
civil authority; or (c) the closure of a non-U.S. branch of State Street in
order to prevent, in the reasonable judgment of State Street, harm to the
employees or property of State Street. The obligation to repay any such deposit
shall not be transferred to and may not be enforced against any other branch of
State Street.

The foregoing provisions constitute the disclosure required by Massachusetts
General Laws, Chapter 167D, Section 36.

While State Street is not obligated to repay any deposit made at a non-U.S.
branch or any deposit denominated in a non-U.S. currency during the period in
which its repayment has been prevented, prohibited or otherwise blocked, State
Street will repay such deposit when and if all circumstances preventing,
prohibiting or otherwise blocking repayment cease to exist.

                                       2
<PAGE>

                       SECURITY PROCEDURES SELECTION FORM

PLEASE SELECT AT LEAST two of the funds transfer security procedures indicated
below.

| |   SWIFT

      SWIFT (Society for Worldwide Interbank Financial Telecommunication) is a
      cooperative society owned and operated by member financial institutions
      that provides te1ecommunication services for its membership. Participation
      is limited to securities brokers and dealers, clearing and depository
      institutions, recognized exchanges for securities, and investment
      management institutions. SWIFT provides a number of security features
      through encryption and authentication to protect against unauthorized
      access, loss or wrong delivery of messages, transmission errors, loss of
      confidentiality and fraudulent changes to messages.

      Selection of this security procedure would be most appropriate for
      existing SWIFT members.

| |   REMOTE BATCH TRANSMISSION

      Wire transfer instructions are delivered via Computer-to-Computer
      (CPU-CPU) data communications between the Client and/or its agent and
      State Street and/or its agent. Security procedures include encryption
      and/or the use of a test key by those individuals authorized as Automated
      Batch Verifiers or a callback procedure to those individuals.

      Clients selecting this option should have an existing facility for
      completing (CPU-CPU) transmissions. This delivery mechanism is typically
      used for high-volume business such as shareholder redemptions and dividend
      payments.

| |   AUTOMATED CLEARING HOUSE (ACH)

      State Street or its agent receives an automated transmission from a Client
      For the initiation of payment (credit) or collection (debit) transactions
      through the ACH network. The transactions contained on each transmission
      or tape must be authenticated by the Client. The transmission is sent from
      the Client's or its agent's system to State Street's or its agent's system
      with encryption.

| |   REPETITIVE WIRES

      For situations where funds are transferred periodically from an existing
      authorized account to the same payee (destination bank and account number)
      and only the date and currency amount are variable, a repetitive wire may
      be implemented. Repetitive wires will be subject to a $10 million limit.
      If the payment order exceeds the $10 million limit, the instruction will
      be confirmed by Telephone Confirmation (Call Back) or Test Key prior to
      execution. Repetitive wire instructions must be reconfirmed annually.
      Clients may establish Repetitive Wires by following the agreed upon
      security procedures as described by Telephone Confirmation (Call Back) or
      Test Key.

      This alternative is recommended whenever funds are frequently transferred
      between the same two accounts. If this option is selected, choose either
      Telephone Confirmation or Test Key to be used as a secondary procedure
      when over $10 million.

| |    STANDING INSTRUCTIONS

      Funds are transferred by State Street to a counter party on the Client's
      established list of authorized counter parties. Only the date and the
      dollar amount are variable. Clients may establish Standby Instructions by
      following the agreed upon security procedures as described by Telephone
      Confirmation (Call Back) or Test Key. Additional paperwork will be
      required from insurance Clients using 1031 drawdowns.

      This option is used for transactions that include but are not limited to
      Foreign Exchange Contracts, Time Deposits and Tri-Party Repurchase
      Agreements. If this option is selected, choose either Telephone
      Confirmation or Test Key to be used as a secondary procedure when over
      $10 million.

| |   TELEPHONE CONFIRMATION (CALL BACK)

      This procedure requires Clients to designate individuals as authorized
      initiators and authorized verifiers. State Street will verify that the
      instruction contains the signature of an authorized person and, prior to
      execution of the payment order, will contact someone other than the
      originator at the Client's location to authenticate the instruction.

      Selection of the alternative is appropriate for Clients who do not have
      the capability to use other security procedures. Please complete the
      Telephone Confirmation Instructions attached as a Schedule hereto.

| |   TEST KEY

      Test Key confirmation will be used to verify all non-repetitive funds
      transfer instructions received via facsimile or phone. State Street will
      provide test keys if this option is chosen. State Street will verify that
      the instruction contains the signature of an authorized person and, prior
      to execution of the payment order, will authenticate the test key provided
      with the corresponding test key at State Street.

      Selection of this alternative is appropriate for Clients who do not have
      the capability to use other security procedures.

The individual signing below must be authorized to sign contract on behalf of
the Client. The execution of payment orders under the selected Security
Procedures is governed by the Funds Transfer Operating Guidelines, which are
incorporated by reference.

PLATINUM UNERWRITERS HOLDINGS, LTD.
CLIENT

By:
   ----------------------------------
     Authorized Signature

-------------------------------------
Type or Print Name

-------------------------------------
Title

-------------------------------------
Date

                                       3
<PAGE>

PLATINUM REGENCY HOLDINGS               PLATINUM RE (UK) LIMITED

By:                                     By:
   ------------------------------          ------------------------------
     Authorized Signature                    Authorized Signature

---------------------------------       ---------------------------------
Type or Print Name                      Type or Print Name

---------------------------------       ---------------------------------
Title                                   Title

---------------------------------       ---------------------------------
Date                                    Date

PLATINUM UNDERWRITERS BERMUDA, LTD.     PLATINUM UNDERWRITERS FINANCE, INC.

By:                                     By:
   ------------------------------          ------------------------------
     Authorized Signature                    Authorized Signature

---------------------------------       ---------------------------------
Type or Print Name                      Type or Print Name

---------------------------------       ---------------------------------
Title                                   Title

---------------------------------       ---------------------------------
Date                                    Date

                                       4
<PAGE>

                SCHEDULE TO FUNDS TRANSFER OPERATING GUIDELINES
                     AND SECURITY PROCEDURES SELECTION FORM

CLIENT:  PLANTINUM UNDERWRITERS HOLDINGS, LTD.
        ------------------------------------------------------------------------
         Company Name

ACCOUNT NUMBER(S): CIW1
                  --------------------------------------------------------------

KEY CONTACT INFORMATION

Who shall we contact to implement your selection(s)?

CLIENT OPERATIONS CONTACT               ALTERNATE CONTACT

---------------------------------       ---------------------------------
Name                                    Name

---------------------------------       ---------------------------------
Adress                                  Address

---------------------------------       ---------------------------------
City/State/Zip Code                     City/State/Zip Code

---------------------------------       ---------------------------------
Telephone Number                        Telephone Number

---------------------------------       ---------------------------------
Facsimile Number                        Facsimile Number

---------------------------------
SWIFT Number

TELEPHONE CONFIRMATION INSTRUCTIONS

Authorized Initiators (Please type or Print) - Please provide a listing of your
staff members who are currently authorized to INITIATE wire transfer
instructions.

NAME                        TITLE                     SPECIMEN SIGNATURE

---------------------       ---------------------     -----------------------

---------------------       ---------------------     -----------------------

---------------------       ---------------------     -----------------------

---------------------       ---------------------     -----------------------

---------------------       ---------------------     -----------------------

Authorized Verifiers (Please Type or Print) - Please provide a list of your
staff members who will be CALLED BACK to verify the initiation of repetitive
wires of $10 million or more and all non-repetitive wire instructions.

NAME                        CALLBACK PHONE NUMBER     DOLLAR LIMITATION (IF ANY)

---------------------       ---------------------     -----------------------

---------------------       ---------------------     -----------------------

---------------------       ---------------------     -----------------------

---------------------       ---------------------     -----------------------

---------------------       ---------------------     -----------------------

------------------------------------------------      ------------------------
APPROVAL (FOR STATE STREET USE ONLY)                   DATE

                                     1

<PAGE>

                SCHEDULE TO FUNDS TRANSFER OPERATING GUIDELINES
                     AND SECURITY PROCEDURES SELECTION FORM

CLIENT:  PLANTINUM REGENCY HOLDINGS
        ------------------------------------------------------------------------
         Company Name

ACCOUNT NUMBER(S): CIW2
                  --------------------------------------------------------------

KEY CONTACT INFORMATION

Who shall we contact to implement your selection(s)?

CLIENT OPERATIONS CONTACT                ALTERNATE CONTACT

---------------------------------       ---------------------------------
Name                                    Name

---------------------------------       ---------------------------------
Adress                                  Address

---------------------------------       ---------------------------------
City/State/Zip Code                     City/State/Zip Code

---------------------------------       ---------------------------------
Telephone Number                        Telephone Number

---------------------------------       ---------------------------------
Facsimile Number                        Facsimile Number

---------------------------------
SWIFT Number

TELEPHONE CONFIRMATION INSTRUCTIONS

Authorized Initiators (Please type or Print) - Please provide a listing of your
staff members who are currently authorized to INITIATE wire transfer
instructions.

NAME                        TITLE                     SPECIMEN SIGNATURE

---------------------       ---------------------     -----------------------

---------------------       ---------------------     -----------------------

---------------------       ---------------------     -----------------------

---------------------       ---------------------     -----------------------

---------------------       ---------------------     -----------------------

Authorized Verfiers (Please Type or Print) - Please provide a list  of your
staff members who will be CALLED BACK to verify the initiation of repetitive
wires of $10 million or more and all non-repetitive wire instructions.

NAME                        CALLBACK PHONE NUMBER     DOLLAR LIMITATION (IF ANY)

---------------------       ---------------------     -----------------------

---------------------       ---------------------     -----------------------

---------------------       ---------------------     -----------------------

---------------------       ---------------------     -----------------------

---------------------       ---------------------     -----------------------

------------------------------------------------        ------------------------
APPROVAL (FOR STATE STREET USE ONLY)                    DATE

                                     2
<PAGE>
                 SCHEDULE TO FUNDS TRANSFER OPERATING GUIDELINES
                     AND SECURITY PROCEDURES SELECTION FORM

            CLIENT:   PLATINUM UNDERWRITERS BERMUDA, LTD.
                   -------------------------------------------------------------
                      Company Name

            ACCOUNT NUMBER(S): CIW3
                              --------------------------------------------------

            KEY CONTACT INFORMATION
            Who shall we contact to implement your selection(s)?

            CLIENT OPERATIONS CONTACT            ALTERNATE CONTACT

            ----------------------------         -------------------------------
            Name                                 Name

            ----------------------------         -------------------------------
            Address                              Address

            ----------------------------         -------------------------------
            City/State/Zip Code                  City/State/Zip Code

            ----------------------------         -------------------------------
            Telephone Number                     Telephone Number

            ----------------------------         -------------------------------
            Facsimile Number                     Facsimile Number

            ----------------------------
            SWIFT Number

            TELEPHONE CONFIRMATION INSTRUCTIONS

            Authorized Initiators (Please Type or Print) -- Please provide a
            listing of your staff members who are currently authorized to
            INITIATE wire transfer instructions:

<TABLE>
<CAPTION>

            NAME                            TITLE                            SPECIMEN SIGNATURE

            <S>                             <C>                              <C>
            ---------------------           ---------------------            -----------------------

            ---------------------           ---------------------            -----------------------

            ---------------------           ---------------------            -----------------------

            ---------------------           ---------------------            -----------------------

            ---------------------           ---------------------            -----------------------
</TABLE>

            Authorized Verifiers (Please Type or Print) -- Please provide a
            listing of your staff members who will be CALLED BACK to verify the
            initiation of repetitive wires of $10 million or more and all
            non-repetitive wire instructions:

<TABLE>
<CAPTION>

            NAME                            CALLBACK PHONE NUMBER             DOLLAR LIMITATION (IF ANY)

            <S>                             <C>                               <C>
            ---------------------           ---------------------             -----------------------

            ---------------------           ---------------------             -----------------------

            ---------------------           ---------------------             -----------------------

            ---------------------           ---------------------             -----------------------

            ---------------------           ---------------------             -----------------------

            -----------------------------------------------------             -----------------------
            APPROVAL (FOR STATE STREET USE ONLY)                              DATE

            ---------------------           ---------------------             -----------------------
</TABLE>

                                       3
<PAGE>

                 SCHEDULE TO FUNDS TRANSFER OPERATING GUIDELINES
                     AND SECURITY PROCEDURES SELECTION FORM

            CLIENT:  PLATINUM RE (UK) LIMITED
                   -------------------------------------------------------------
                     Company Name
            ACCOUNT NUMBER(S): CIW5
                              --------------------------------------------------

            KEY CONTACT INFORMATION
            Who shall we contact to implement your selection(s)?

            CLIENT OPERATIONS CONTACT                ALTERNATE CONTACT

            ---------------------------              ---------------------------
            Name                                     Name

            ---------------------------              ---------------------------
            Address                                  Address

            ---------------------------              ---------------------------
            City/State/Zip Code                      City/State/Zip Code

            ---------------------------              ---------------------------
            Telephone Number                         Telephone Number

            ---------------------------              ---------------------------
            Facsimile Number                         Facsimile Number

            ---------------------------
            SWIFT Number

            TELEPHONE CONFIRMATION INSTRUCTIONS

            Authorized Initiators (Please Type or Print) -- Please provide a
            listing of your staff members who are currently authorized to
            INITIATE wire transfer instructions:

<TABLE>
<CAPTION>
            NAME                            TITLE                            SPECIMEN SIGNATURE

            <S>                             <C>                              <C>
            ---------------------           ---------------------            -----------------------

            ---------------------           ---------------------            -----------------------

            ---------------------           ---------------------            -----------------------

            ---------------------           ---------------------            -----------------------

            ---------------------           ---------------------            -----------------------
</TABLE>

            Authorized Verifiers (Please Type or Print) -- Please provide a
            listing of your staff members who will be CALLED BACK to verify the
            initiation of repetitive wires of $l0 million or more and all
            non-repetitive wire instructions:

<TABLE>
<CAPTION>
            NAME                            CALLBACK PHONE NUMBER            DOLLAR LIMITATION (IF ANY)

            <S>                             <C>                              <C>
            ---------------------           ---------------------            -----------------------

            ---------------------           ---------------------            -----------------------

            ---------------------           ---------------------            -----------------------

            ---------------------           ---------------------            -----------------------

            ---------------------           ---------------------            -----------------------

            ----------------------------------------------------                 -------------------
            APPROVAL (FOR STATE STREET USE ONLY)                                 DATE
</TABLE>

                                       4
<PAGE>

                 SCHEDULE TO FUNDS TRANSFER OPERATING GUIDELINES
                     AND SECURITY PROCEDURES SELECTION FORM

            CLIENT:  PLATINUM UNDERWRITERS FINANCE. INC.
                   -------------------------------------------------------------
                    Company Name
            ACCOUNT NUMBER(S): CIW6
                              --------------------------------------------------

            KEY CONTACT INFORMATION
            Who shall we contact to implement your selection(s)?

            CLIENT OPERATIONS CONTACT                ALTERNATE CONTACT

            ---------------------------              ---------------------------
            Name                                     Name

            ---------------------------              ---------------------------
            Address                                  Address

            ---------------------------              ---------------------------
            City/State/Zip Code                      City/State/Zip Code

            ---------------------------              ---------------------------
            Telephone Number                         Telephone Number

            ---------------------------              ---------------------------
            Facsimile Number                         Facsimile Number

            ---------------------------
            SWIFT Number

            TELEPHONE CONFIRMATION INSTRUCTIONS

            Authorized Initiators (Please Type or Print) -- Please provide a
            listing of your staff members who are currently authorized to
            INITIATE wire transfer instructions:

<TABLE>
<CAPTION>

            NAME                            TITLE                            SPECIMEN SIGNATURE

            <S>                             <C>                              <C>
            ---------------------           ---------------------            -----------------------

            ---------------------           ---------------------            -----------------------

            ---------------------           ---------------------            -----------------------

            ---------------------           ---------------------            -----------------------

            ---------------------           ---------------------            -----------------------
</TABLE>

            Authorized Verifiers (Please Type or Print) - Please provide a
            listing of your staff members who will be CALLED BACK to verify the
            initiation of repetitive wires of $10 million or more and all
            non-repetitive wire instructions.

<TABLE>
<CAPTION>
            NAME                            CALLBACK PHONE NUMBER            DOLLAR LIMITATION (IF ANY)

            <S>                             <C>                              <C>
            ---------------------           ---------------------            -----------------------

            ---------------------           ---------------------            -----------------------

            ---------------------           ---------------------            -----------------------

            ---------------------           ---------------------            -----------------------

            ---------------------           ---------------------            -----------------------

            ---------------------------------------------------              -----------------------
            APPROVAL (FOR STATE STREET USE ONLY)                             DATE

</TABLE>

                                       5
<PAGE>

                         REMOTE ACCESS SERVICES ADDENDUM

      State Street Bank and Trust Company ("State Street") has developed
proprietary accounting and other systems, and has acquired licenses for other
such systems, which it utilizes in conjunction with the services we provide to
you (the "Systems"). In this regard, we maintain certain information in
databases under our control and ownership that we make available on a remote
basis to our customers (the "Remote Access Service").

      The Services. This addendum shall govern use of all Systems that State
Street may from time to time agree to provide you, the Customer, and your
designated investment advisors, consultants or other third parties authorized by
State Street who agree to abide by the terms of this addendum ("Authorized
Designees") in order to provide Remote Access Services for the purpose of
obtaining and analyzing reports and information.

      Security Procedures. You agree to comply, and to cause your Authorized
Designees to comply, with remote access operating standards and procedures and
with user identification or other password control requirements and other
security procedures as may be issued from time to time by State Street for use
of the Systems and access to the Remote Access Services. You agree to advise
State Street immediately in the event that you learn or have reason to believe
that any person to whom you have given access to the Systems or the Remote
Access Services has violated or intends to violate the terms of this addendum
and you will cooperate with State Street in seeking injunctive or other
equitable relief. You agree to discontinue use of the Systems and Remote Access
Services, if requested, for any security reasons cited by State Street.

      Fees. Fees and charges (if any) for the use of the Systems and the Remote
Access Services and related payment terms shall be as set forth in Schedule A.
You shall be responsible for any tariffs, duties or taxes imposed or levied by
any government or governmental agency by reason of the transactions contemplated
by this addendum, including, without limitation, federal, state and local taxes,
use, value added and personal property taxes (other than income, franchise or
similar taxes which may be imposed or assessed against State Street). Any
claimed exemption from such tariffs, duties or taxes shall be supported by
proper documentary evidence delivered to State Street.

      Proprietary Information/Injunctive Relief. The Systems and Remote Access
Services and the databases, computer programs, screen formats, report formats,
interactive design techniques, formulae, processes, systems, software, know-how,
algorithms, programs, training aids, printed materials, methods, books, records,
files, documentation and other information made available to you by State Street
as part of the Remote Access Services and through the use of the Systems and all
copyrights, patents, trade secrets and other proprietary rights of State Street
and its relevant licensors related thereto are the exclusive, valuable and
confidential property of State Street and its relevant licensors, as applicable
(the "Proprietary information"). You agree on behalf of yourself and your
Authorized Designees to keep the Proprietary Information confidential and to
limit access to your employees and Authorized Designees (under a similar duty of
confidentiality) who require access to the Systems for the purposes intended.
The foregoing shall not apply to Proprietary information in the public domain or
required by law to be made public.

                                       6
<PAGE>

      You agree to use the Remote Access Services only in connection with the
proper purposes of this addendum. You will not, and will cause your employees
and Authorized Designees not to, (i) permit any third party to use the Systems
or the Remote Access Services, (ii) sell, rent, license or otherwise use the
Systems or the Remote Access Services in the operation of a service bureau or
for any purpose other than as expressly authorized under this addendum, (iii)
use the Systems or the Remote Access Services for any fund, trust or other
investment vehicle without the prior written consent of State Street, or (iv)
allow or cause any information transmitted from State Street's databases,
including data from third party sources, available through use of the Systems or
the Remote Access Services, to be redistributed or retransmitted for other than
use for or on behalf of yourse1f, as our Customer.

      You agree that neither you nor your Authorized Designees will modify the
Systems in any way, enhance or otherwise create derivative works based upon the
Systems, nor will you or your Authorized Designees reverse engineer, decompile
or otherwise attempt to secure the source code for all or any part of the
Systems.

      You acknowledge that the disclosure of any Proprietary Information, or of
any information which at law or equity ought to remain confidential, will
immediately give rise to continuing irreparable injury inadequately compensable
in damages at law, and that State Street and its licensor, if applicable, shall
be entitled to obtain immediate injunctive relief against the breach or
threatened breach of any of the foregoing undertakings, in addition to any other
legal remedies which may be available.

      Limited Warranties. State Street represents and warrants that it has the
right to grant access to the Systems and to provide the Remote Access Services
contemplated herein. Because of the nature of computer information technology
and the necessity of relying upon third-party sources, and data and pricing
information obtained from third parties, the Systems and Remote Access Services
are provided "AS IS," and you and your Authorized Designees shall be solely
responsible for the investment decisions, regulatory reports and statements
produced using the Remote Access Services. State Street and its relevant
licensors will not be liable to you or your Authorized Designees for any direct
or indirect, special, incidental, punitive or consequential damages arising out
of or in any way connected with the Systems or the Remote Access Services, nor
shall either party be responsible for delays or nonperformance under this
Agreement arising out of any cause or event beyond such party's control.

      EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, STATE STREET FOR ITSELF
AND ITS RELEVANT LICENSORS EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES
CONCERNING THE SYSTEM AND THE SERVICES TO BE RENDERED HEREUNDER, WHETHER EXPRESS
OR IMPLIED, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY OR
FITNESS FOR A PARTICULAR PURPOSE.

      Infringement. State Street will defend or, at our option, settle any claim
or action brought against you to the extent that it is based upon an assertion
that access to any proprietary System

                                       7
<PAGE>

developed and owned by State Street or use of the Remote Access Services through
any such proprietary System by you under this addendum constitutes direct
infringement of any United States patent or copyright or misappropriation of a
trade secret, provided that you notify State Street promptly in writing of any
such claim or proceeding and cooperate with State Street in the defense of such
claim or proceeding. Should any such proprietary System or the Remote Access
Services accessed thereby or any part thereof become, or in State Street's
opinion be likely to become, the subject of a claim of infringement or the like
under the patent or copyright or trade secret laws of the United States, State
Street shall have the right, at State Street's sole option, to (i) procure for
you the right to continue using such System or Remote Access Services, (ii)
replace or modify such System or Remote Access Services so that the System or
the Remote Access Services becomes noninfringing, or (iii) terminate this
Agreement without further obligation.

      Termination. Either party may terminate this Addendum in accordance with
Section 12 of the Custodian and Accounting Services Agreement or immediately for
failure of the other party to comply with any material term and condition of the
addendum by giving the other party written notice of termination. This addendum
shall in any event terminate within ninety (90) days after the termination of
any State Street custodian, accounting or other services agreement applicable to
you. In the event of termination, you will return to State Street all copies of
documentation and other confidential information in your possession or in the
possession of your Authorized Designees. The foregoing provisions with respect
to confidentiality and infringement will survive termination for a period of
three (3) years.

      Miscellaneous. Except as provided in the next sentence, this addendum
constitutes our entire understanding with respect to access to the Systems and
the Remote Access Services. If any State Street custody, accounting or other
services agreement with you contains terms and conditions relating to computer
systems or data access, this addendum shall constitute an amendment and
supplement to them, and in the event of any inconsistency the provisions
providing the greatest benefit to State Street shall control. This addendum
cannot be modified or altered except in a writing duly executed by both of us
and shall be governed by and construed in accordance with the laws of the
Commonwealth of Massachusetts.

                                       8
<PAGE>

                                   Schedule A

                       STATE STREET BANK AND TRUST COMPANY

                 INVESTMENT ACCOUNTING AND CUSTODY FEE SCHEDULE
                                       FOR

                       PLATINUM UNDERWRITERS HOLDINGS LTD.

                                 AND AFFILIATES

I.    INVESTMENT ACCOUNTING

      ASSUMPTIONS

            >     $1.0 billion in assets

            >     Daily processing of investment transactions

            >     Transactions to be provided to State Street in required file
                  format for loading into PAM

            >     Monthly pricing of portfolios to be provided by designated
                  third party or Platinum Underwriters Holdings Ltd..

      INVESTMENT ACCOUNTING SERVICES

      Provide Platinum Underwriters with outsourcing of investment accounting
      including:

            >     Account for assets on a GAAP and statutory basis

            >     On-line, real-time access to PAM for Securities

            >     Internal management reporting -- standard reports from PAM
                  system

            >     On-line access to impromptu report writer for custom reporting

            >     Reconciliation of PAM to custody records for par value/shares

            >     Standard PAM journals (cash, transaction and valuation)
                  provided in ASCII file format

      INVESTMENT ACCOUNTING SERVICES FEES

                  ASSETS ACCOUNTED FOR

                  >     Up to first $1.0 billion        1.2 BASIS POINTS

                  >     Thereafter                               .8 BASIS POINTS

                  >     IMPLEMENTATION FEE - One-time conversion fee of $20,000
                        for structuring of the portfolios on PAM for Securities
                        and converting the "current" tax lot level position
                        information. There will be an incremental charge
                        of $5,000/rnonth for each month of historical investment
                        information back loaded into PAM if required.

Please Note: The above fee schedule is based on information provided by Platinum
Underwriters Holding, Ltd.. Significant changes in portfolio composition and
activity may necessitate a revision of these terms. This fee schedule is
confidential and is intended for Platinum Underwriters internal use only.

      FEE CALCULATION AND BILLING

      Fees will be calculated on a quarterly basis in advance and derived by
      multiplying the applicable basis point rates above by the total invested
      assets accounted for at the beginning of each quarterly billing period.
      The effective date for billing will begin with

                                       9
<PAGE>

      the first month-end reporting period State Street becomes the "book of
      record". The implementation fee is due upon contract signing.

                                   Schedule A

                       STATE STREET BANK AND TRUST COMPANY
                 INVESTMENT ACCOUNTING AND CUSTODY FEE SCHEDULE
                                       FOR
                       PLATINUM UNDERWRITERS HOLDINGS LTD.
                                 AND AFFILIATES

II.   CUSTODY

Maintain custody of fund assets. Settle portfolio purchases and sales. Report
buy and sell fails. Determine and collect portfolio income. Make cash
disbursements and report cash transactions. Monitor corporate actions. On-line
access to portfolio information via In-sight.

       DOMESTIC CUSTODY

> Annual Asset Based Fee                                     .25 basis points
> Transaction charge for domestic trades         $7.50 per trade
> Options/Futures                                        $8.00 per transaction
> Third party money market investments           $7.50 per transaction
> Third Party F/X                                        $7.50 per transaction
> Wire transfers                                         $6.OO per transaction
> Physicals                                              $25.OO

Investments in State Street or SSGA investment products and F/X transactions
initiated through State Street are free of charge.

III.  OUT-OF-POCKET EXPENSES

      A billing for the recovery of applicable out-of-pocket expenses will be
      made as of the end of each month. Out-of-pocket expenses include, but are
      not limited to, the following:

      > Overnight Mailings                       > Pre-approved Travel
      > Follow-up Training                       > Annual Audit Letter
      > External Pricing

IV.   TERMS

      The above referenced fee proposal is part of a three-year agreement
      between Platinum Underwriters Holdings Ltd. and State Street to provide
      investment accounting and custody services. State Street agrees to fix the
      above fee rates for three years from the date of the signed investment
      accounting and custody agreement; provided that significant changes in
      portfolio composition and activity may necessitate a revision of these
      terms.

                                       10
<PAGE>

                                   Schedule A

                       STATE STREET BANK AND TRUST COMPANY
                 INVESTMENT ACCOUNTING AND CUSTODY FEE SCHEDULE
                                       FOR

                       PLATINUM UNDERWRITERS HOLDINGS LTD.

                                 AND AFFILIATES

PLATINUM UNDERWRITERS HOLDINGS LTD.      PLATINUM REGENCY HOLDINGS

By                                       By
     ----------------------------             ----------------------------------

Title                                    Title
     ----------------------------             ----------------------------------

Date                                     Date
     ----------------------------             ----------------------------------

PLATINUM UNDERWRITERS BERMUDA, LTD.      PLATINUM UNDERWRITERS FINANCE, INC.

By                                       By
     ----------------------------             ----------------------------------

Title                                    Title
     ----------------------------             ----------------------------------

Date                                     Date
     ----------------------------             ----------------------------------

PLATINUM RE (UK) LIMITED                 STATE STREET BANK AND TRUST COMPANY

By                                       By
     ----------------------------             ----------------------------------

Title                                    Title
     ----------------------------             ----------------------------------

Date                                     Date
     ----------------------------             ----------------------------------

                                       11
<PAGE>

                                    EXHIBIT A
          Schedule of Investment Accounting and Recordkeeping Functions

The PAM Software's standard reports listed below will be made available to
Client via dial-in access to the PAM Software. Client acknowledges that the
timeliness of the reports generated by State Street in performing the Services
as set forth below are based upon the timeliness of delivery of all necessary
data.

A. MONTHLY OBLIGATIONS. State Street will provide to Client the following on a
Statutory and GAAP basis:

      1.Transaction Recording and Review. All reports listed below will be made
      available via on-line to Client within two (2) business days after
      Client's Designated Custodian has provided to State Street all final
      custodian bank statements via on-line.

      Reports:
            >  Transaction Journal Report
            >  Transaction Ledger Report
            >  Asset Reconciliation Report

            A. The Transaction Journal Report will be available in a PAM ASCII
            file format for posting to Client's general ledger system. State
            Street will input and review of all manager directed trades
            originating from Client and outside managers. Client must ensure
            that all trades are promptly and accurately reported to State Street
            daily. In addition, the Client will review the Transaction Ledger
            report sent by State Street monthly or on an interim basis if
            requested.

            B. Any exceptions found in the custodian bank asset reconciliation
            process will be investigated and State Street will use reasonable
            efforts to resolve within twenty-four (24) hours. Any discrepancies
            will be resolved by making corrections to accounting system records
            or by notifying the custodian bank in writing via email or facsimile
            of a bank error to be corrected by the custodian bank. Client will
            be copied on all custodian bank correspondence.

            C. State Street will set up and review all new security master
            files. Client will have the primary responsibility for providing all
            necessary descriptive data on newly acquired securities.

      2. Cash Processing. All reports listed below will be made available via
      on-line to Client within two (2) business days after Client's Designated
      Custodian has provided State Street with all necessary cash detail via
      on-line. Cash Processing includes cash settlements, cash processing,
      suspense processing and inquiries of overdues.

      Reports:
            >  Cash Journal Report

                                       12
<PAGE>

                                    EXHIBIT A

          Schedule of Investment Accounting and Recordkeeping Functions

              >  Open Receivable/Payable Report
              >  Unapplied Cash Report

            A. The Cash Journal Report will be available in a PAM ASCII file
            format for posting to Client's general ledger system.

            B. Client shall supply State Street with written instructions to
            identify and record appropriate general ledger accounts to be offset
            for repetitive miscellaneous cash transactions and advise State
            Street on an as-needed basis for non-repetitive miscellaneous items.

            C. Client shall verify that (i) the total cash receipt and
            disbursement activity, and ending balances, by account, agree with
            the bank provided data; and (ii) open item listings appear
            reasonable and in-line with Client expectations. State Street shall
            not be responsible or liable for any incorrect information.

            D. Client must ensure that investment managers promptly respond to
            State Street inquiries regarding discrepancies resulting from
            trading activity initiated by them.

      3. Valuation of Assets. All reports listed below will be made available
      via on-line to Client within two (2) business days after Client, Client's
      Designated Custodian, or agreed upon market data vendor has provided State
      Street with all the necessary market prices.

      Reports:

               > Valuation Journal

               > Holdings Report

               > GAAP Holdings Report

               > Missing Prices Report

               > Income Earned Report

            A. The Valuation Journal will be available in a PAM ASCII file
            format for posting to Client's general ledger system.

            B. In order for State Street to value Client's portfolios Client
            must provide State Street with (i) all transaction positions for the
            month to be evaluated and (ii) pricing data.

            C. Upon receipt of all transaction positions for the month to be
            evaluated, State Street will use reasonable efforts to provide
            missing pricing data from the agreed upon market data vendor or
            Client. However, Client is responsible for any and all missing
            prices not supplied to State Street via the agreed upon market data
            vendor. In order to aide Client in determining those securities yet
            to be priced for the month, State Street will make

                                       13
<PAGE>

            available to Client the Missing Prices Report within twenty-four
            (24) hours after pricing is provided by the Client or agreed upon
            market data vendor.

            D. Client is required to monitor below investment grade securities
            and advise State Street in writing, no later than three (3) days
            prior to the delivery of all reports, if any permanent impairment
            recording is necessary.

            E. Client is responsible for reviewing and assuring all investment
            results for material reasonableness.

      4.    Realized Gain/Loss. All reports listed below will be made available
            via on-line to Client within two (2) business days after Client has
            provided State Street with the necessary transaction information.

Reports:

            > Realized Gain/Loss Report

B.    QUARTERLY AND ANNUAL OBLIGATIONS. State Street will provide the following
      on a quarterly and annual basis as necessary:

      1.    Regu1atory (Statutory) Reporting. All reports listed below will be
            made available via on-line to Client within seven (7) business days
            after delivery of the month end reports.

Reports:

            > Schedule D - All Parts

            > Schedule DA - Parts I and II

            > Schedule DB

            > Risk Based Capital Report

            > Schedule E -- Securities on Deposit Report

            > Statutory Reconciliation Report by Book Value

            > Statutory Reconciliation Report by Carry Value

            > Statutory Holdings Report

State Street will also make available to Client the formatted file for Schedule
D All Parts and DA Parts I and II for interface to Client's annual statement
package provided the annual statement package is a PAM Software approved annual
statement package.

      2.    GAAP Reporting. Within seven (7) business days after delivery of the
            month-end reports, State Street will make available via on-line all
            final and reconciled reports listed below:

Reports:
            >  GAAP Maturity Distribution Report
            >  GAAP Footnote Disclosure Report

                                       14
<PAGE>

                                    EXHIBIT H

                                Control Agreement

                                      J-7
<PAGE>

                                CONTROL AGREEMENT

      Control Agreement dated as of November____, 2002, by and among ST. PAUL
REINSURANCE COMPANY LIMITED ("PARTY A"), PLATINUM RE (UK) LIMITED ("PARTY B"),
and STATE STREET BANK AND TRUST COMPANY ("CUSTODIAN") (the "AGREEMENT").

      WHEREAS, pursuant to a custodian and investment accounting agreement
between Custodian and various affiliated parties including Party B (as amended,
the "CUSTODIAN AGREEMENT"), Custodian acts as custodian for Party B's assets
and, as such Custodian, has established a custodial account in the name of Party
B in which the Collateral, as defined below (together with other assets of Party
B) is held; and

      WHEREAS, Party A and Party B have entered into a retrocession agreement,
dated as of November _, 2002 (the "RETROCESSION AGREEMENT") and a security
agreement, dated as of November, 2002 in the form attached hereto as Exhibit A
(the "SECURITY AGREEMENT") pursuant to the terms of which, Party B will from
time to time grant a continuing first priority security interest over certain
assets specified by Party B and identified in writing to Custodian as Collateral
as defined in the Security Agreement (the "COLLATERAL") to secure Party B's
obligations under the Retrocession Agreements; and

      WHEREAS, Party A, Party B and Custodian are entering into this Agreement
for the purpose of appointing Custodian to serve as collateral agent for Party A
and to serve as securities intermediary as herein provided in order to provide
Party A with control of the Collateral Accounts and the Collateral credited
thereto and held therein (each as defined below), in each case for the purpose
of perfecting and establishing the priority of Party A's security interest in
such Collateral;

      NOW, THEREFORE, in consideration of the mutual promises set forth herein,
it is agreed as follows:

1. APPOINTMENT AND ESTABLISHMENT OF ACCOUNTS.

      1.1 Party A hereby appoints Custodian as collateral agent on its behalf
and Custodian hereby accepts such appointment. In addition, Custodian agrees to
act as securities intermediary and/or depositary bank, as applicable, with
respect to the Collateral Accounts and the Collateral held therein pursuant
hereto.

      1.2 The Custodian has established and will maintain a segregated account
(which may include one or more sub-accounts) entitled "Platinum Re (UK) Limited
for the Benefit of St. Paul Reinsurance Company Limited" (the "Securities
Account"); and a separate and segregated deposit account or accounts (as defined
in Section 9-102 of the UCC) entitled "Platinum Re (UK) Limited for the Benefit
of St. Paul Reinsurance Company Limited" (the "Deposit Account", and together
with the Securities Account, the "COLLATERAL ACCOUNTS"), all as more
particularly described on the attached Schedule 1, hereto. Each party hereto
agrees that (i) the Securities Account constitutes a "securities account" within
the meaning of Article 8 of the UCC, and (ii) all property now or hereafter
held, credited or carried by, in or to the credit of Securities

                                       1
<PAGE>

Account (other than "Identified Securities", as defined in Section 5(vi), and
cash) shall be treated as "financial assets" within the meaning of UCC Section
8-102(a)(9). Each of the Collateral Accounts shall be maintained separately and
apart from any other account or sub-account of Party B. The Custodian shall not
change the name of the Collateral Accounts without the prior written consent of
Party A. Except for specified "Identified Securities", as provided hereinafter,
Party B agrees that all financial assets credited to the Collateral Accounts
shall be registered in the name of the Custodian, endorsed to the Custodian or
in blank or credited to another securities account maintained in the name of the
Custodian, and except for such Identified Securities, no financial asset
credited to the Collateral Accounts shall be registered in the name of Party B,
payable to the order of Party B or specially endorsed to Party B except to the
extent the foregoing have been specially endorsed to the Custodian or in blank.

      1.3 The Custodian agrees that it shall promptly notify Party A and Party B
in writing after becoming aware that any financial asset which constitutes
Collateral is registered or endorsed otherwise than as provided in the foregoing
Section 1.2; provided, however, that the Custodian shall have no liability
hereunder for the failure to deliver such notice except to the extent such
failure results from its negligence or misconduct.

      1.4 Party B, from time to time, shall instruct Custodian in writing by any
of the means mutually agreed to between Party B and Custodian (which shall
constitute "Proper instructions" under the Custodian Agreement), to segregate
and hold in a separate account the Collateral for the benefit of Party A,
whereupon any such Collateral, other than cash Collateral, shall be credited to
and held in the Securities Account, and any such cash Collateral shall be
credited to and held in the Deposit Account. Custodian shall have no
responsibility for determining the adequacy of any Collateral required hereunder
or under the Retrocession Agreement, nor will it assume responsibility for any
calculations related to any Collateral requirements under the Retrocession
Agreement.

      1.5 All Cash Proceeds (as defined in UCC Section 9-l02(a)(9)) of the
Collateral received by the Custodian, except for the Distributions (as defined
in the Security Agreement (the "Distributions")), shall be deposited in the
Collateral Accounts and become part of the Collateral.

2. Account Control.

      2.1 Security interest. This Agreement is intended by Party A and Party B
to grant "control" of the Collateral Accounts to Party A for purposes of the
perfection and priority of Party A's security interest in such Collateral
pursuant to Article 8 and Article 9 of the UCC, and Custodian hereby
acknowledges that it has been advised of Party B's grant to Party A of a
security interest in the Collateral Accounts and the Collateral held therein.
Notwithstanding the foregoing, Custodian makes no representation or warranty
with respect to the creation or enforceability of any security interest in the
Collateral Accounts or the Collateral held therein. Custodian shall promptly and
in the exercise of due care and reasonable commercial standards comply with
"entitlement orders" (as that term is defined in UCC Section 8-102(a)(8)),
including but not limited to a Notice of Exclusive Control substantially in the
form attached hereto as Exhibit B ("NOTICE OF EXCLUSIVE CONTROL"), originated by
Party A and concerning the Collateral, without the further consent of Party B,
including without limitation any entitlement order originated by Party A
instructing the Custodian to deliver any or all of the Collateral to Party A

                                       2
<PAGE>

or its designees.

      2.2 Control by Party B. Unless and except to the extent it has received a
contrary entitlement order from Party A pursuant to Section 2.1, and except as
provided in Section 2.3(i), below: (i) Custodian shall take actions with respect
to the Collateral in the Collateral Accounts upon the instructions of Party B,
and (ii) Custodian shall have no responsibility or liability to Party A or Party
B for actions taken in accordance with such instructions. All entitlement orders
and other instructions and communications that Party B is entitled, or desires,
to give or make under this Agreement may be given or made either by Party B
itself or its investment advisor as designated in writing by Party B to the
Custodian from time to time.

      2.3 Control by Party A.

      (i) Party A agrees to provide Custodian, in the form of Exhibit C attached
(as may be amended from time to time), the names and signatures of authorized
parties who may give notices, instructions, or entitlement orders concerning the
Collateral Accounts and the Collateral held therein. All entitlement orders and
other instructions and communications that Party A is entitled, or desires, to
give or make under this Agreement may be given or made either by Party A itself
or its attorney in fact, as designated in writing by Party A to the Custodian
from time to time. Other means of notice, instruction, or entitlement orders may
be used provided that Party A and Custodian agree to appropriate security
procedures. Upon receipt by Custodian of a Notice of Exclusive Control, and
unless and until such Notice of Exclusive Control has been revoked in writing by
Party A, Custodian shall thereafter follow only the instructions of Party A with
respect to the Collateral Accounts and shall comply with any entitlement order
or instructions (within the meaning of Sections 8-102, 9-104, and 9-106 of the
UCC) received from Party A, without further consent of Party B or any other
person, and Custodian will not comply with entitlement orders or instructions
concerning the Collateral originated by Party B without the prior written
consent of Party A.

      (ii) Party A represents and warrants to Party B that Party A will only
issue to Custodian a Notice of Exclusive Control if Party A has determined in
good faith that an event has occurred which entitles Party A to exercise its
rights as a secured party with respect to the Collateral in the Collateral
Accounts.

      (iii) Custodian shall have no responsibility or liability to Party B for
complying with a Notice of Exclusive Control or complying with entitlement
orders or instructions originated by Party A concerning the Collateral Accounts
and the Collateral held therein. Custodian shall have no duty to investigate or
make any determination to verify compliance by Party A or Party B with
applicable law. Nor shall Custodian have any duty to verify the occurrence of an
event entitling Party A to exercise its rights as a secured party with respect
to the Collateral in the Collateral Accounts, and Custodian shall be fully
protected in complying with a Notice of Exclusive Control whether or not Party B
may allege that no such event has occurred.

      (iv) As between Party A and Custodian, notwithstanding any provision
contained herein or in any other document or instrument to the contrary,
Custodian shall not be liable for any action taken or omitted to be taken at the
instruction of Party A, or any action taken or omitted to be taken under or in
connection with this Agreement, except for Custodian's own negligence or willful
misconduct in carrying out such instructions.

                                       3
<PAGE>

3. DISTRIBUTIONS. Custodian shall transfer the Distributions to the Party B
within ten (10) days following the end of each calendar month, upon proper
written instructions by Party B, to Party B's custodial account or any other
account designated by Party B unless Custodian has received a Notice of
Exclusive Control and, if any Notice of Exclusive Control is in effect, until
such Notice of Exclusive Control has been revoked or rescinded in writing by
Party A. The Distributions shall not be considered Collateral.

4. RELEASE OF COLLATERAL; RELEASE OF SECURITY INTEREST.

      4.1 Release of Collateral. As soon as reasonably practicable after
receiving joint instructions from Party A and Party B, Custodian will release
Collateral held in the Collateral Accounts in accordance with such instructions.
Notwithstanding the foregoing, Custodian will release Collateral held in the
Collateral Accounts upon receipt from Party B of a Substitution Notice as
defined in the Security Agreement notifying Custodian of Party B's intention to
substitute Qualified Assets as defined in the Security Agreement and in
accordance with instructions from Party B that comport with such Substitution
Notice, provided, that no contrary instructions have been received from Party A,
and that no Notice of Exclusive Control is then in effect.

      4.2 Release of Security Interest. Party A agrees to notify Custodian
promptly in writing when all obligations of Party B to Party A under the
Retrocession Agreement and the Security Agreement have been fully satisfied or
Party A otherwise no longer claims any interest in the Collateral in the
Collateral Accounts, whichever is sooner; at which time Custodian shall have no
further liabilities or responsibilities hereunder and Custodian's obligations
under this Agreement shall terminate.

5. DUTIES AND SERVICES OF CUSTODIAN.

      (i) Custodian agrees that it is acting as a securities intermediary, as
defined in Section 8-102 of the UCC with respect to the Collateral in the
Securities Account, except Identified Securities. Custodian agrees, with respect
to the Deposit Account, that it is acting as a "bank" as such term is used in
Section 9-102(a)(29) of the UCC. The parties hereto acknowledge that the
Custodian Agreement is governed by the laws of The Commonwealth of Massachusetts
and that, as a consequence, the jurisdiction of Custodian as securities
intermediary and as bank is The Commonwealth of Massachusetts.

      (ii) Custodian shall have no duties, obligations, responsibilities or
liabilities with respect to the Collateral Accounts and the Collateral held
therein except as and to the extent expressly set forth in this Agreement and
the Custodian Agreement, and no implied duties of any kind shall be read into
this Agreement against Custodian including, without limitation, the duty to
preserve, exercise or enforce rights in the Collateral and the Collateral
Accounts. Custodian shall not be liable or responsible for anything done or
omitted to be done by it in good faith and in the absence of negligence and may
rely and shall be protected in acting upon any notice, instruction, entitlement
orders, or other communication which it reasonably believes to be genuine and
authorized.

      (iii) As between Party B and Custodian, except for the rights of control
in favor of Party A agreed to herein, nothing herein shall be deemed to modify,
limit, restrict, amend or supersede the terms of the Custodian Agreement, and
Custodian shall be and remain entitled to all of the rights, indemnities,
powers, and protections in its favor under the Custodian

                                       4
<PAGE>

Agreement, which shall apply fully to Custodian's actions and omissions
hereunder. Instructions under this Agreement from Party B's authorized
representative given in accordance with the terms of the Custodian Agreement
shall also constitute Proper Instructions under the Custodian Agreement.

      (iv) As between Custodian and Party A, Party A shall indemnify and hold
Custodian harmless with regard to any losses or liabilities of Custodian
(including reasonable attorneys' fees) imposed on or incurred by Custodian
arising out of any action or omission of Custodian in accordance with any
notice, instruction, or entitlement order of Party A under this Agreement except
for actions or omissions due to Custodian's own negligence or willful
misconduct.

      (v) The parties hereto acknowledge that no "security entitlement" under
the UCC shall exist with respect to any cash or to any financial asset held in
the Collateral Accounts which is registered in the name of Party B, payable to
the order of the Party B, or specially indorsed to Party B or any third party
(each such asset an "IDENTIFIED SECURITY"), except to the extent such Identified
Security has been specially indorsed by Party B to Custodian or in blank. The
parties further acknowledge and agree that any such cash and/or Identified
Securities received by Custodian and credited to the Collateral Accounts from
time to time shall (so long as so credited to the Collateral Accounts and so
long as this Agreement remains in effect) be held by Custodian for the benefit
of and on behalf of Party A, not in its capacity as a "securities intermediary"
(as defined in the UCC), but in its capacity as a collateral agent under and
subject to the terms of this Agreement.

      (vi) For avoidance of doubt, Party A hereby acknowledges that any
Collateral in the Collateral Accounts issued outside the United States ("FOREIGN
SECURITY SYSTEM ASSETS") which may be held by Custodian, a sub-custodian within
Custodian's network of sub-custodians (each a "SUB-CUSTODIAN") or a depository
or book-entry system for the central handling of securities and other financial
assets in which Custodian or the Sub-Custodian are participants may not permit
Party B to have a security entitlement under the UCC with respect to such
Foreign Security System Assets (and such property shall be deemed for purposes
of this Agreement not to be a financial asset held within the Collateral
Accounts). The parties hereby further acknowledge that Custodian gives no
assurance that a security entitlement is created under the UCC with respect to
Party B's assets held in Euroclear or Clearstream or their successors.

      (vii) Custodian shall from time to time employ one or more sub-custodians
in accordance with the terms of the Custodian Agreement.

6. FORCE MAJEURE; SPECIAL DAMAGES. Custodian shall not be liable for delays,
errors or losses occurring by reason of circumstances beyond its control,
including, without limitation, acts of God, market disorder, terrorism,
insurrection, war, riots, failure of transportation or equipment, or failure of
vendors, communication or power supply. In no event shall Custodian be liable to
any person for indirect, consequential or special damages, even if Custodian has
been advised of the possibility or likelihood of such damages.

7. COMPLIANCE WITH LEGAL PROCESS AND JUDICIAL ORDERS. Custodian shall have no
responsibility or liability to Party A or Party B or to any other person or
entity for acting in accordance with any judicial or arbitral process, order,
writ, judgment, decree or claim of lien relating to the Collateral Accounts and
the Collateral held therein subject to this Agreement notwithstanding that such
order or process is subsequently modified, vacated or otherwise

                                       5
<PAGE>

determined to have been without legal force or effect.

8. CUSTODIAN REPRESENTATIONS. Custodian agrees and confirms, as of the date
hereof, and at all times until the termination of this Agreement, that it has
not entered into, and until the termination of this Agreement will not enter
into, any agreement (other than the Custodian Agreement) with any other person
or entity relating to the Collateral or the Collateral Accounts under which it
has agreed to comply with entitlement orders (as defined in Section 8-102 of the
UCC) of such other person or entity.

9. Access To Reports. Upon any pledge, release, or substitution of Collateral in
the Collateral Accounts, Custodian shall notify Party A within one business day
of such change. Custodian will provide to Party A a copy of a statement of the
Collateral Accounts and the Collateral held therein within five (5) business
days of the end of the calendar month; provided, however, that Custodian's
failure to forward a copy of such statement to Party A shall not give rise to
any liability hereunder.

10. INTERPLEADER. Notwithstanding any provision contained in this Agreement to
the contrary, in the event of any dispute concerning this Agreement or the
disposition of any of the Collateral or the Collateral Accounts, Custodian shall
have the absolute right, at its election, to (a) refrain from taking any action
(other than to hold the Collateral in accordance with the Custodian Agreement)
until directed by written instructions signed by Party B and Party A or by final
order of a court of competent jurisdiction; or (b) in the event of litigation
between Party B and Party A, deliver all of the Collateral in the Collateral
Accounts to the clerk of any court in which such litigation is pending, or file
suit in interpleader and deliver the Collateral in the Collateral Accounts to
the court in which the action is commenced, and obtain an order from the court
requiring the parties to interplead and litigate in such court their claims and
rights among themselves, whereupon Custodian shall thereby be relieved from any
further liability respecting the Collateral and the Collateral Accounts.

11. FEES AND EXPENSES OF CUSTODIAN. In addition to the terms of the Custodian
Agreement, Party B hereby agrees to pay and reimburse Custodian for any
advances, fees, costs, expenses (including, without limitation, reasonable
attorney's fees and costs) and disbursements that may be paid or incurred by
Custodian in connection with this Agreement or the arrangement contemplated
hereby, including any that may be incurred in performing its duties or
responsibilities pursuant to the terms of this Agreement. Any fees, expenses or
other amounts that may be owing to Custodian from time to time pursuant to the
terms hereof, or of the Custodian Agreement shall be secured by any lien,
encumbrance or other right Custodian may have under the Custodian Agreement or
applicable law, and Custodian shall be entitled to exercise its rights and
remedies against the Collateral and Collateral Accounts in accordance with the
term's and conditions of the Custodian Agreement.

It is hereby expressly acknowledged and agreed by the parties that Custodian
(including its agents) shall not be obligated to advance cash or investments to,
for or on behalf of Party B in the Collateral Accounts, provided, however, that
if Custodian does advance cash or investments to the Collateral Accoun1s for any
purpose (including but not limited to securities settlements, foreign exchange
contracts, assumed settlement or account overdraft) for the benefit of Party B,
any property at any time held pursuant to this Agreement and the Custodian
Agreement shall be security therefor and, should Party B fail to repay Custodian
promptly, Custodian shall be entitled to utilize available cash and to dispose
of Collateral in the Collateral Accounts to the

                                       6
<PAGE>

extent necessary to obtain reimbursement.

12. NOTICES. Any notice, instruction, entitlement order, or other instrument
required to be given hereunder, or requests and demands to or upon the
respective parties hereto, shall be in writing and may be sent by hand, or by
facsimile transmission, telex, or delivery by any recognized delivery service,
prepaid or, for termination of this Agreement only, by certified or registered
mail, and addressed as follows, or to such other address as any party may
hereafter notify the other respective parties hereto in writing:

<TABLE>

<S>                              <C>                              <C>
If to Party A, then:             If to Party B, then:             If to Custodian, then:
St. Paul Reinsurance Company     Platinum Re (UK) Limited         State Street Bank and Trust Company
Limited                          52 Lime Street                   801 Pennsylvania Avenue
27 Camperdown Street             London EC3M 7NL                  Kansas City, MO 64105
London El 8DS                    UK                               Attention: Vice President, Insurance
UK                               Attention: Guy Butler            Services
Attention: Company Secretary     Telephone: 011-44-207-220-8110   Telephone: (816) 871-4100
Telephone:                       Telecopy: 011-44-207-623-6610    Telecopy: (816) 871-9675
Telecopy: 01 1-44-207-488-6345
</TABLE>

13. AMENDMENT. No amendment or modification of this Agreement will be effective
unless it is in writing and signed by each of the parties hereto.

14. TERMINATION. This Agreement shall continue in effect until Party A has
notified Custodian in writing that this Agreement is to be terminated. Upon
receipt of such notice, Party A shall have no further right to originate
entitlement orders concerning the Collateral Accounts and Party B shall be
entitled to originate entitlement orders concerning the Collateral for any
purpose and without limitation except as may be provided in the Custodian
Agreement. This Agreement may also be terminated by Custodian, Party A or, with
the prior written consent of Party A, Party B, and shall terminate in the event
of the termination of the Custodian Agreement, following thirty (30) days prior
written notice to the other parties hereto. Upon termination of this Agreement
by any party, all Collateral in the Collateral Accounts that has not been
released by Party A shall be transferred, within 30 days of such termination, to
a successor custodian designated in writing by Party B and acceptable to Party
A. In the event no successor is agreed upon, Custodian shall be entitled to
petition a court of competent jurisdiction to appoint a successor custodian and
shall be indemnified by Party B for any costs and expenses (including, without
limitation, attorneys' fees) relating thereto.

15. SEVERABILITY. In the event any provision of this Agreement is held illegal,
void or unenforceable, the remainder of this Agreement shall remain in effect.

16. GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the laws of The Commonwealth of Massachusetts, without giving
effect to the conflict of law provisions thereof.

17. HEADINGS. Any headings appearing on this Agreement are for convenience only
and shall not affect the interpretation of any of the terms of this Agreement.

                                       7
<PAGE>

18. Counterparts. This Agreement may be executed in several counterparts, each
of which shall be deemed to be an original, and all such counterparts taken
together shall constitute one and the same Agreement.

                                       8
<PAGE>

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

ST. PAUL REINSURANCE COMPANY LIMITED

By:
    ------------------------------

Name:
      ----------------------------

Title:
       ---------------------------

PLATINUM RE (UK) LIMITED

By:
    ------------------------------

Name:
     -----------------------------

Title:
      ----------------------------

STATE STREET BANK AND TRUST COMPANY

By:
    ------------------------------

Name:
      ----------------------------

Title:
       ---------------------------

                                       9
<PAGE>

                                    EXHIBIT A

        TO CONTROL AGREEMENT AMONG ST. PAUL REINSURANCE COMPANY LIMITED,
        PLATINUM RE (UK) LIMITED AND STATE STREET BANK AND TRUST COMPANY

                         FORM OF THE SECURITY AGREEMENT

                                 [See attached]

                                       10
<PAGE>

                                    EXHIBIT B
    TO CONTROL AGREEMENT AMONG ST. PAUL REINSURANCE COMPANY LIMITED, PLATINUM
             RE (UK) LIMITED AND STATE STREET BANK AND TRUST COMPANY

                             [Letterhead of Party A]

[Date]

State Street Bank and Trust Company
801 Pennsylvania Avenue
Kansas City, MO 64105

Attention: Vice President, Insurance Services

                           NOTICE OF EXCLUSIVE CONTROL

We hereby instruct you pursuant to the terms of that certain Control Agreement
dated as of _____________, 2002 (as from time to time amended and supplemented,
the "CONTROL AGREEMENT") among the undersigned, Platinum Re (UK) Limited
(together with its successors and assigns, "PARTY B") and you, as Custodian,
that you (i) shall not follow any instructions or entitlement orders of Party B
with respect to the Collateral or the Collateral Accounts held by you for Party
B, and (ii) unless and until otherwise expressly instructed by the undersigned,
shall exc1usive]y follow the entitlement orders and instructions of the
undersigned with respect to the Collateral or the Collateral Accounts.

Very truly yours,
St. Paul Reinsurance Company Limited.

By: __________________________
      Authorized Signatory

cc:

                                       11
<PAGE>

                                    EXHIBIT C
    TO CONTROL AGREEMENT AMONG ST. PAUL REINSURANCE COMPANY LIMITED, PLATINUM
             RE (UK) LIMITED AND STATE STREET BANK AND TRUST COMPANY

          AUTHORIZED PERSONS FOR ST. PAUL REINSURANCE COMPANY LIMITED

      State Street Bank and Trust Company is directed to accept and act upon
written instructions received from any one of the following persons at St. Paul
Reinsurance Company Limited

Name                 Telephone/Fax Number             Signature
----                 --------------------             ---------

1.                   1.Telephone                      1.
                                                        ------------------------
                     Facsimile

2.                   2. Telephone                     2.
                                                        ------------------------
                     Facsimile

3.                   3. Telephone                     3.
                                                        ------------------------
                     Facsimile

4.                   4. Telephone                     4.
                                                        ------------------------
                     Facsimile

5.                   5. Telephone                     5.
                                                        ------------------------
                     Facsimile

Authorized by: _____________________________

as authorized agent of St. Paul Reinsurance Company Limited
               Name:
                      ---------------------------
               Title:
                      ---------------------------

                                       12
<PAGE>

                                   SCHEDULE I
    TO CONTROL AGREEMENT AMONG ST. PAUL REINSURANCE COMPANY LIMITED, PLATINUM
             RE (UK) LIMITED AND STATE STREET BANK AND TRUST COMPANY

                               COLLATERAL ACCOUNTS

                                 Deposit Account

--------------------------------------------------------------------------------
           Description                                       Number
--------------------------------------------------------------------------------
Platinum Re (UK) fbo St. Paul Re             54798137
--------------------------------------------------------------------------------

                               Securities Account

--------------------------------------------------------------------------------
           Description                                       Number
--------------------------------------------------------------------------------
Platinum Re (UK) fbo St. Paul Re             CIW8
--------------------------------------------------------------------------------

                                       13
<PAGE>

                                    EXHIBIT I

                          Investment Advisory Agreement

                                      J-8
<PAGE>

                        ALLIANCE CAPITAL MANAGEMENT L.P.

                   Discretionary Investment Advisory Agreement

                                      With

                            Platinum Re (UK) Limited

                             Dated November___, 2002
                                (Effective Date)

            Alliance Capital Management L.P. (the "Adviser") and Platinum Re
(UK) Limited (the "Client") hereby agree as of the above date that the Adviser
shall act as discretionary investment manager with respect to certain assets of
the Client described below (the "Investment Account") on the following terms and
conditions:

      1.    The investment Account

            The Investment Account established for the Client refer collectively
to the Collateral Accounts defined in and subject to a certain Control Agreement
by and among the Client, St. Paul Reinsurance Company Limited and State Street
Bank and Trust Company, dated as of November___, 2002 and established as a
condition of the 100% Quota Share Retrocession Agreement (Traditional) (the
"Quota Share Retrocession Agreement"), by and between the Client and St. Paul
Reinsurance Company Limited, dated as of November___, 2002, shall initially
consist of cash, cash equivalents, stocks, bonds, and other securities placed in
the Investment Account by the Client or which shall become part of such
Investment Account as a result of transactions.

            All cash, securities and other assets in the Investment Account
shall be held by such other party as the Client shall designate as trustee or
custodian for such account (each, a "Custodian"). The Adviser shall not be
responsible for any custodial arrangements involving the assets of the
Investment Account or for the payment of any custodial charges and fees, nor
shall the Adviser have possession or custody of any such assets. All payments,
distributions and other transactions in cash, securities or other assets in
respect of the investment Account shall be made directly to or from the
Custodian for such Investment Account, and the Adviser shall have no
responsibility or liability with respect to transmittal or safekeeping of such
cash, securities or other assets of an Investment Account, or the acts or
omissions of any Custodian or others with respect thereto. The Client may make
additions to or withdrawals from the Investment Account established for it,
provided the Adviser receives at least three (3) business days' prior written
notice of withdrawals. Should the Client fail to provide the Adviser with timely
written notice of any additions to or withdrawals from its Investment Account,
the Adviser shall not be liable for any resulting investment or other loss, if
any, which shall be incurred by or charged to the applicable investment Account,
as the case may be. The Client agrees to provide or instruct the

<PAGE>

Custodian for its Investment Account to provide to the Adviser such information
as the Adviser may reasonably request as being necessary or appropriate to the
performance of the Adviser's responsibilities to the Client under this
Agreement.

      2.    Services of Adviser

            By execution of this Agreement, the Adviser accepts its appointment
as investment manager for the Investment Account with full discretion and agrees
to supervise and direct the investments of the Investment Account in accordance
with the written investment objectives, policies and restrictions of the Client
previously furnished to the Adviser as the same may be amended by the Client
from time to time. In the performance of its services, the Adviser will not be
liable for any error in judgment or any acts or omissions to act except those
resulting from the Adviser's negligence, willful misconduct, malfeasance or
material breach of this Agreement. Nothing herein shall in any way constitute a
waiver or 1imitation of any right of any person under the Federal securities
laws or any state securities laws

            The Adviser will make available to the Client a daily report on the
positions of each of the investments in the Investment Account and a monthly
written report of the inventory of investments in the Investment Account
established for the Client. It is agreed that the Adviser, in the maintenance of
its records, does not assume responsibility for the accuracy of information
furnished by any Client or any other person.

      3.    Funding Policy

            The Client shall from time to time inform the Adviser in writing of
the funding policy applicable to it and of its cash disbursement requirements.
The Adviser shall make its investment decisions for an Investment Account in
accordance with such funding policy and requirements.

      4.    Investment Objectives, Policies and Restrictions

            It will be the responsibility of the Client to notify the Adviser in
writing of any modifications to Schedule A. The Client is also required to
notify the Adviser in writing of specific restrictions governing its Investment
Account under the current or future laws of any jurisdiction or by virtue of the
terms of any other contract or instrument purporting to bind the Client or the
Adviser.

      5.    Delivery of Client Documentation

            No later than the date of this Agreement, the Client will provide
the Adviser with copies of all documents relevant to the Adviser's management of
the Investment Account established for the Client, (i.e. trust agreement,
pension plan documents, by-laws, etc.), including the Client's written statement
of investment objectives, policies and restrictions referred to above. The
Client further agrees to promptly deliver to the Adviser true and complete
copies of

                                       2
<PAGE>

all amendments of supplements to such documents. The Client will indemnify and
hold harmless the Adviser against any and all losses, costs, claims and
liabilities which it may suffer or incur arising out of any failure by the
Client to provide to the Adviser the documents required to be furnished in
accordance with the above provisions.

      6.    Discretionary Authority

            The Adviser, whenever it deems appropriate may (i) buy, sell,
exchange, convert, liquidate or otherwise trade in any stock, bonds and other
securities (including money market instruments) and contracts relating to the
same, and (ii) subject to its duty to seek best execution, place orders for the
execution of such transactions with or through such brokers, dealers or issuers
as the Adviser in its absolute discretion may select.

            It is understood that, to the extent permitted by Schedule A, the
Adviser or Alliance Capital Global Derivatives Corporation, an affiliate of the
Adviser, may also effect transactions for the Investment Account of the Client
in options and futures and other commodity contracts. In such event, the Client
will execute any additional documentation which the Adviser deems necessary to
enable it or its affiliate to engage in such transactions on behalf of its
Investment Account. The Client represents and warrants that it is familiar with
the requirements of the Commodity Exchange Act and the National Futures
Association pertaining to commodity pool operators and has determined that it is
in compliance with such requirements, to the extent applicable.

7.    Brokerage Transactions

            Fixed-income securities transactions for the investment Account will
generally be effected in dealer markets where the Adviser will act as agent for
the Client in the purchase or sale of fixed-income securities at a net price
that includes a mark-up from the dealer. The Adviser will issue instructions to
such issuers, brokers and dealers for the placement of orders for the Investment
Account and instruct such dealers to forward to the Client copies of all
confirmations promptly after the execution of transactions for the Client's
investment Account.

      8.    Aggregation of Transactions

            The Client authorizes the Adviser in its discretion to aggregate
purchases and sales of securities for its Investment Account with purchases and
sales of securities of the same issuer for other clients of the Adviser
occurring on the same day. When transactions are so aggregated, the actual
prices applicable to the aggregated transactions will be averaged, and the
Investment Account and the accounts of other participating clients of the
Adviser will be deemed to have purchased or sold their proportionate share of
the securities involved at the average price so obtained.

      9.    Transaction Procedures

            All transactions will be settled by payment to, or delivery by, the
applicable Custodian of all cash, securities or other assets due to or from the
investment Account. The

                                       3
<PAGE>

Adviser may issue such instructions to a Custodian as may be appropriate in
connection with the settlement of transactions initiated by the Adviser.
Instructions of the Adviser to a Custodian shall be transmitted in writing or,
at the option of the Adviser, orally and confirmed in writing as soon as
practical thereafter. The Adviser will take reasonable measures to insure that
broker-dealers and issuers selected by the Adviser perform their obligations
with respect to the Investment Accounts.

      10.   Fees

            The compensation of the Adviser for its services under this
Agreement shall be calculated and paid by the Client in respect of the
Investment Account established for it, in accordance with the Fee Schedule
attached hereto as Exhibit A, as the same may be amended from time to time by
mutual agreement between the Client and the Adviser. It is understood that, in
the event that such fees are to be billed to and paid by the Custodian for an
Investment Account, the Client will provide written authorization to the
Custodian to pay the fees of the Adviser directly from the Investment Account.
The Client shall be responsible solely for the fee due to the Adviser in respect
of the Investment Account established for such Client.

      11.   Confidential Relationship

            All information provided by the Client or a Custodian to the Adviser
shall be held as confidential by the Adviser; provided, however, as is necessary
to carry out the purposes of this Agreement or as may be required by law, the
Adviser shall be permitted to disclose or communicate to a proper party any
information received from the Client or a Custodian or developed by the Adviser
under the terms of this Agreement. All recommendations, advice and other work
product of the Adviser developed under the terms of this Agreement and disclosed
to the Client or a Custodian shall be held as confidential, except as required
by law. Notwithstanding the foregoing, Client hereby authorizes the Adviser to
disclose through whatever means it deems appropriate (CHECK THE APPROPRIATE
BOXES BELOW):

      PLATINUM RE (UK) LIMITED

      (a) Yes |X| No | | that the Client is an investment management client of
                         the Adviser;

      (b) Yes |X| No | | the type of assets that the Adviser is managing for the
                         Client from time to time (e.g., fixed-income assets);
                         and/or

      (c) Yes |X| No | | solely in the limited context of the Adviser's
                         responses to Request for Proposals ("RFPs"), the
                         Adviser is also authorized by the Client to disclose in
                         such RFPs, the value of the assets managed for the
                         Client by the Adviser from time to time.

                                       4
<PAGE>

If the Client does not check either "yes" or "no" to any of the requested
disclosure authorizations indicated in (a) through (c) above, the Client shall
be deemed to have no objection to the Adviser disclosing the indicated
information. The Client may revoke these authorizations in respect of itself, at
any time by written notice to the Adviser.

      12.   Services to Other Clients

            It is understood that the Adviser performs investment advisory
services for various clients including investment companies. The Client agrees
that the Adviser may give advice and take action with respect to any of its
other clients which may differ from advice given, or the timing or nature of
action taken, with respect to the investment Account established for it, so long
as it is the Adviser's policy, to the extent practical, to allocate investment
opportunities to the Investment Account over a period of time on a fair and
equitable basis relative to other clients.

            Nothing in this Agreement shall limit or restrict the Adviser or any
of its directors, officers, affiliates or employees from buying, selling or
trading in any securities or other assets for its or their own account or
accounts, and the Client acknowledges that the Adviser, its directors, officers,
affiliates and employees, and other clients of the Adviser, may at any time
have, acquire, increase, decrease or dispose of positions in investments which
are at the same time being acquired, held or disposed of for the Investment
Account.

            The Adviser will not have any obligation to initiate the purchase or
sale, or to recommend for purchase or sale, for the Investment Account any
security or other asset which the Adviser, its directors, officers, affiliates
or employees may purchase, hold or sell for its or their own accounts or for the
accounts of any other clients of the Adviser.

      13.   Non-Public Information

            The Adviser will have no obligation to purchase or sell for the
Investment Account the securities of any issuer on the basis of any material
non-public information as may come into its possession.

      14.   Representations by the Client

            The Client represents and warrants as to itself that (i) the
appointment of the Adviser as discretionary investment adviser entitled to give
entitlement orders or other instructions and communications to the Custodian is
authorized by the governing documents (including, but not limited to the Quota
Share Retrocession Agreement and all documents related thereto) relating to the
Investment Account and that the terms of this Agreement do not violate any
provisions thereof or any obligation by which it is bound, whether arising by
contract, operation of law or otherwise; (ii) this Agreement has been duly
authorized by appropriate action and when executed and delivered will be binding
upon it in accordance with its terms; and (iii) it will deliver to the Adviser
such evidence of such authority as the Adviser may reasonably require, whether
by way of a certified resolution or otherwise.

                                       5
<PAGE>

      15.   Representations by Adviser

            The Adviser represents that (i) it is registered as an investment
adviser under the Investment Advisers Act of 1940, as amended (the "Advisers
Act") and (ii) that it has all other regulatory authority and capacity to enter
into this Agreement and perform its duties hereunder.

      16.   Indemnification

            The Adviser agrees to indemnify and hold the Client harmless from
any and all expenses, damages, costs and fees, including reasonable attorney's
fees, which may be incurred by reason of the Adviser's negligence, willful
misconduct, malfeasance, material breach of this Agreement or violation of
applicable law.

      17.   Valuation

            In computing the market value of any security held in the Investment
Account, the Adviser shall value such security through independent, recognized
pricing services utilized by the Adviser for pricing securities held in its
advisory accounts generally. Any other security or asset shall be valued in a
manner determined in good faith by the Adviser to reflect its fair market value.

      18.   Receipt of Disclosure Statement

            The Client acknowledges receipt of Part II of the Advisers current
Form ADV in compliance with Rule 204-3(b) under the Advisers Act more than forty
eight (48) hours prior to the date of execution of this Agreement.

      19.   Notices

            Unless otherwise specified herein, all notices, instructions and
advice with respect to security transactions or any other matters contemplated
by this Agreement shall be deemed duly given when received by the Client and the
Adviser, as applicable, at their addresses appearing below. In respect of the
investment Account, the Adviser may rely upon any notice (written or oral) from
any person whom the Adviser reasonably believes to be an authorized
representative of the Client.

      20.   Specimen Signatures

            The Adviser will forward from time to time to the Client and the
Custodian for the Client's investment Account, a list of names and specimen
signatures of persons authorized to act on behalf of the Adviser. The Client
will forward to the Adviser a list of names and specimen signatures of persons
authorized to act on behalf of the Client shall cause the

                                       6
<PAGE>

Custodian of its Investment Account to forward a like list and specimen
signatures to the Adviser.

      21.   Invalid Provisions

            If any provision of this Agreement is held to be illegal, invalid or
unenforceable under present or future law, such provision shall be fully
severable, and this Agreement shall be construed and enforced as if such
illegal, invalid or unenforceable provision had never comprised a part of this
Agreement, and the remaining provisions of this Agreement shall remain in full
force and effect and shall not be affected by the illegal, invalid or
unenforceable provision or its severance from this Agreement.

      22.   Termination; Assignment; Amendment

            This Agreement may be terminated at any time by the Client in
respect of its Investment Account by giving to the Adviser at least thirty (30)
days prior written notice of such termination. This Agreement may be terminated
at any time by the Adviser in respect of the investment Account by giving to the
Client at least thirty (30) days prior written notice of such termination. Fees
paid in advance of the effectiveness of the termination will be prorated to the
date of termination specified in the notice of termination, and any unearned
portion thereof will be refunded to the Client. No assignment, as that term is
defined in the Advisers Act, shall be made by the Adviser without the written
consent of the Client. No assignment shall be deemed to result from changes in
the directors, officers or employees of the Adviser except as may be provided in
the Advisers Act. The Adviser agrees that it will notify the Client of any
change in the membership of the general partners of the Adviser within a
reasonable time after such change. This Agreement may be amended or modified at
any time by mutual agreement of the Client and the Adviser in writing.

      23.   Counterparts

            This Agreement may be executed in two or more counterparts, each one
of which shall be deemed to be an original.

      24.   Governing Law

            To the extent Federal law does not apply, this Agreement shall be
construed in accordance with and governed by the laws of the State of New York.

      25.   Entire Agreement

            This Agreement constitutes the entire agreement of the parties with
respect to management of the Investment Account.

                                       7
<PAGE>

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

                               PLATINUM RE (UK) LIMITED

                               BY:
                                   -----------------------
                                   Name:
                                   Title:

                               ADDRESS:  52 Lime Street
                                         London EC3M TNL
                                         UNITED KINGDOM
                                         Attention: Guy Butler

                               ALLIANCE CAPITAL MANAGEMENT L.P.

                               BY:    Alliance Capital Management
                                      Corporation, its General Partner

                               BY:
                                      ---------------------------------
                                      Louis T. Mangan
                                      Assistant Secretary

                               ADDRESS:  1345 Avenue of the Americas
                                         New York, New York 10105
                                         Attn: Holly Spencer
                                     cc: Managing Director, Institutional Asset
                                         Management

                                       8
<PAGE>

                            New Account Documentation
                                       for

                            Platinum Re (UK) Limited

The Adviser will require the documents identified below to establish its
investment management relationship with Platinum Underwriters Bermuda, Ltd.

1.    Fully executed advisory agreement (with fee schedule attached).

2.    Accurate list of securities to be transferred to new account unless
      initially consisting of cash or cash equivalents.

3.    Written statement of investment objectives, guidelines and restrictions,
      if any.

4.    Form W-9/W-8, as applicable.

5.    List of Authorized Signatories.

6.    Certified resolution of the Board of Directors or appropriate Committee
      authorizing appointment of the Adviser as investment adviser.

                                       9
<PAGE>

                                    EXHIBIT A

                        ALLIANCE CAPITAL MANAGEMENT L.P.

                  FIXED INCOME INSURANCE ASSET MANAGEMENT FEES
                                  PREPARED FOR

                            Platinum Re (UK) Limited

--------------------------------------------------------------------------------

FOR MINIMUM FIXED INCOME ACCOUNT SIZE OF $I BILLION

            Fee                              Assets
            ---                              ------

            0.19%     on the first           $100 million
            0.14%     on the next            $150 million
            0.11%     on the next            $250 million
            0.10%     on the balance

FOR FIXED INCOME ASSETS LESS THAN $1 BILLION

            Fee                              Assets
            ---                              ------

            0.20%     on the first           $l00 million
            0.15%     on the next            $150 million
            0.12%     on the next            $250 million
            0.10%     on the balance

<PAGE>

                                   SCHEDULE A

                              INVESTMENT GUIDELINES

<PAGE>

                              INVESTMENT GUIDELINES

                            PLATINUM RE (UK) LIMITED
                                ST. PAUL RE (UK)

INVESTMENT OBJECTIVE:
The Fund's assets are managed to provide a high degree of investment income
subject to risk, guidelines, appropriate liquidity considerations, and tax
efficiency.
Other objectives include to maintain or enhance the Platinum Group's
[Financial/Credit] rating and to generate a superior long-term total rate of
return versus a benchmark.

PORTFOLIO DURATION:
The targeted duration of the portfolio will be that of the liability stream,
which Platinum will provide as needed. If no liability stream is available, a
duration target of 3.5 years will apply. The portfolio could deviate as much as
+/- one year away from this target. There is no limitation placed on the
duration of individual securities.

PORTFOLIO CREDIT QUALITY:
The average quality of the managed fund should be no less than A/A2.

<TABLE>
<CAPTION>

--------------------------------------------------------------------------------------------------------------------
                             SECURITY PARAMETERS:                                                DIVERSIFICATION
                                                                                                     LIMITS
--------------------------------------------------------------------------------------------------------------------
                                SECURITY:                                     RATING:
--------------------------------------------------------------------------------------------------------------------
<S>                       <C>                                               <C>                 <C>
i.  GOVERNMENT            Government securities issued by OECD              AA-/Aa3 or          100% per issuer
                          Governments                                         better            100% of portfolio
--------------------------------------------------------------------------------------------------------------------
ii. MONEY                 Repurchase and reverse repurchase                                       3% per issuer
    MARKETS               agreements                                                            100% of portfolio
                          ------------------------------------------------------------------------------------------
                          Negotiable Certificates of Deposit and Time        A-/A3 or             3% per issuer
                          Deposits, Demand Notes and Funding                  better            100% of portfolio
                          Agreements
                          ------------------------------------------------------------------------------------------
                          Commercial paper, including finance                A1/P1 or             3% per issuer
                          company paper and asset-backed commercial           better            100% of portfolio
                          paper
--------------------------------------------------------------------------------------------------------------------
iii. MORTGAGE             Mortgage backed securities whose collateral        A1/A2 or             5% per issuer
     BACKED               is guaranteed by FNMA, FHLMC or GNMA                better             30% of portfolio
     SECURITIES           - agency mortgage backed securities (pass-
     AND                  throughs and CMOs)
     ASSET-               ------------------------------------------------------------------------------------------
     BACKED               Asset-backed securities (an asset-backed           A/A2 or              5% per issuer
     SECURITIES           security issued by a discreet master trust          better             20% of portfolio
                          will be thought of as an individual issuer) -
                          Public and 144a asset-backed securities
                          ------------------------------------------------------------------------------------------
                          Publicly issued private label pass-throughs        A/A2 or              5% per issuer
                          and CMOs (excluding 1/Os and P/Os)                  better             30% of portfolio
--------------------------------------------------------------------------------------------------------------------
iv. COMMERCIAL            Commercial mortgage backed securities              A/A2 or              3% per issuer
    MORTGAGE              (including REITS)                                   better             10% of portfolio
    BACKED
    SECURITIES
--------------------------------------------------------------------------------------------------------------------
v.  MUNICIPAL BONDS       Municipal securities, including "general          A-/A3 or              3% per issuer -
                          obligation" and "revenue" bonds*                   better             100% of portfolio
                                                                         -------------------------------------------
                                                                          Greater than            3% per issuer
                                                                              BBB-               10% of portfolio
                                                                          /Baa3, less
                                                                           than A-/A3
--------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

<TABLE>
<S>                       <C>                                               <C>                 <C>
--------------------------------------------------------------------------------------------------------------------
vi.  CORPORATE            Notes, debentures, medium term notes or          A-/A3 or               3% per issuer
     SECURITIES           secured securities**                              better               50% of portfolio
                                                                          ------------------------------------------
                                                                          BBB-/Baa3               3% per issuer
                                                                          or better              20% of portfolio
                          ------------------------------------------------------------------------------------------
                          Credit default swaps (only when the swap         A-/A3 or               3% per issuer
                          {unfunded version} can create more investment     better               50% of portfolio
                          income than the bond for the same reference
                          entity).***
                                                                          ------------------------------------------
                                                                           BBB-/Baa3              3% per issuer
                                                                           or better             20% of portfolio
--------------------------------------------------------------------------------------------------------------------
vii. PREFERRED STOCKS     Preferred Stocks including Perpetual,            BBB-/Baa3             2.5% per issuer
                          Sinking Fund, Adjustable Rate and Fixed          or better             10% of portfolio
                          Rate
--------------------------------------------------------------------------------------------------------------------
viii. SOVEREIGN           Sovereign securities                             AA-/Aa3 or            50% per issuer
    AND                                                                      better              50% of portfolio
SUPRANATIONAL             ------------------------------------------------------------------------------------------
SECURITIES                Supranational securities                         AA-/Aa3 or            50% per issuer
                                                                             better              50% of portfolio
--------------------------------------------------------------------------------------------------------------------
</TABLE>

--------------------------------------------------------------------------------
The per issuer limitations are a function of the market value of the combined
accounts (US, Bermuda and UK).

The maximum percentage for all securities rated BBB/Baa is 20% of the portfolio.

A maximum of 3O% of the portfolio to be invested in iii. Above.
--------------------------------------------------------------------------------

OTHER RESTRICTIONS:

Futures and options are permitted, provided the instrument is used as a hedge,
with specific prior approval from Platinum.

-         Swaps
-         Futures
-         Exchange traded options
-         Over-the-counter options

Structured securities or securities with embedded options are permitted.
Leverage is not permitted.

In the case of a split rating, the lower of the ratings available shall apply.

Should a security be downgraded below investment grade (BBB-/Baa3) the manager
must notify and consult with Platinum as soon as reasonably practicable,
regarding the optimal timing of the disposal.

For securities with variable principal repayment, the estimated duration should
be used with respect to the duration restrictions.

All holdings must be denominated in the base currency of the relevant portfolio
(but including legacy currencies in the case of Euros).

WITHHOLDING TAXES:

<PAGE>

No investments shall be made that give rise to withholding taxes unless the
after-tax returns are competitive with unavailable returns on which withholding
taxes are not imposed, which will ordinarily only occur where the investor is
able to utilize the withheld taxes as a credit against its domestic income tax
liability. In general investments made with respect to the Bermuda account will,
in the case of securities issued by U.S. issuers, be limited to securities that
are eligible for the "portfolio interest exemption"- i.e., essentially
securities that are in registered form and not issued by a 10% or more
shareholder of Platinum Holdings.

KEY:

*     General obligation bonds are secured by the issuer's pledge of its full
      faith, credit and taxing power for the payment of principal and interest.
      Revenue or special tax bonds are payable only from the revenues derived
      from a particular facility or class of facilities or, in some cases, from
      the proceeds of a special excise or other tax, but not from general tax
      revenues. Municipal bonds will be utilized when there is an after-tax
      benefit to the portfolio.

**    No more than 25% of the portfolio assets can be invested in an industry.

***   For Credit Default Swaps, the rating of the reference entity will serve as
      the rating for the Swap.

<PAGE>

                                    EXHIBIT J

                               Security Agreement

                                      J-9

<PAGE>

                 ----------------------------------------------

                               SECURITY AGREEMENT

                           Dated as of November___, 2002

                                     between

                            PLATINUM RE (UK) LIMITED,
                                   as Debtor,

                                       and

                      ST. PAUL REINSURANCE COMPANY LIMITED,
                                as Secured Party

                 ----------------------------------------------

<PAGE>

            THIS SECURITY AGREEMENT (this "Agreement"), dated as of November __,
2002, is made and entered into by and between PLATINUM RE (UK) LIMITED, a
company incorporated in the United Kingdom (the "Debtor"), and ST. PAUL
REINSURANCE COMPANY LIMITED, a company incorporated in the United Kingdom (the
"Secured Party").

                             PRELIMINARY STATEMENTS

      1. The Debtor and the Secured Party entered into that certain 100% Quota
Share Retrocession Agreement (Traditional), dated as of November__, 2002 (as
such agreement may be amended, modified or supplemented from time to time, the
"Retrocession Agreement").

      2. The Debtor and the Secured Party have appointed the Custodian (as
hereinafter defined) to hold the Collateral (as hereinafter defined) as
collateral agent and securities intermediary on behalf of the Secured Party
pursuant to that certain Control Agreement, dated as of November___, 2002 among
the Debtor, the Custodian and the Secured Party (the "Control Agreement"). The
Debtor has also appointed the Investment Adviser (as hereinafter defined) to
give advice from time to time in relation to the investment of such Collateral
pursuant to that certain Discretionary Investment Advisory Agreement, dated as
of November___, 2002 among the Debtor and the Investment Adviser (the
"Investment Advisory Agreement").

      3. The parties hereto desire to enter into this Agreement, among other
things, to grant to the Secured Party a continuing security interest in and to
all of the Collateral as security for the Obligations (as hereinafter defined).

      4. This Agreement is being entered into pursuant to the terms of
subsection (iv) of Section "Security" of the Retrocession Agreement.

            NOW THEREFORE, in consideration of the foregoing and for other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged the parties hereto agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

            Section 1.01 Definitions.

            (a) For all purposes of this Agreement capitalized terms used and
not defined herein shall have the meanings assigned to such terms in the
Retrocession Agreement, the Control Agreement and the Investment Advisory
Agreement (such meanings to be equally applicable to both the singular and
plural forms of the terms defined) and all references in this Agreement to
Sections are to Sections of this Agreement unless specified otherwise.

            (b) Except for the terms defined in this Agreement, the Retrocession
Agreement, the Control Agreement or the Investment Advisory Agreement all terms
defined in

<PAGE>

Article 8 or 9 of the UCC which are used in this Agreement shall have the
meaning specified in such Articles.

            (c) As used in this Agreement, the following terms shall have the
following meanings:

            "Collateral" has the meaning assigned to that term in Section
2.01(a).

            "Collateral Accounts" mean Deposit Account and Securities Account.

            "Control Agreement" has the meaning assigned to that term in the
Preliminary Statements.

            "Custodian" means State Street Bank and Trust Company, a
Massachusetts trust company, as Custodian for the Debtor pursuant to the
Custodian Agreement, or such other custodian as the Debtor may from time to time
appoint with the prior written consent of the Secured Party.

            "Custodian Lien" means the lien on the Collateral Accounts in favor
of the Custodian created pursuant to the Control Agreement.

            "Custodian Agreement" means that certain Custodian and Investment
Accounting Agreement dated as of November 1, 2002 among the Custodian, the
Debtor and certain related parties, as amended or supplemented from time to
time.

            "Deposit Account" means the separate, segregated Deposit Account
listed on Schedule I hereto and any other deposit accounts and sub-accounts
which are established by the Custodian under, and subject to, the Control
Agreement.

            "Distributions" means, with respect to Collateral, all interest,
income and other payments and distributions of cash or other property in the
nature of income with respect to that Collateral. Distributions will not include
any item of property acquired by the Secured Party upon any disposition or
liquidation of Collateral.

            "Ending Asset Value" has the meaning assigned to that term in
Section 3.02(a).

            "Ending Reserves" has the meaning assigned to that term in Section
3.02(a).

            "Excess Reserves" has the meaning assigned to that term in Section
3.02(b).

            "Event of Default" means a failure by the Debtor to pay any amount
due under the Retrocession Agreement within 90 days of the due date for payment.

            "Governmental Authority" means any nation or government, any state
or other political subdivision thereof and any entity exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining
to government.

                                       2

<PAGE>

            "Insolvency Event" means any one or more of the following: (a) the
Debtor becomes unable or admits inability to pay its debts as they fall due, or
(b) the appointment of an administrator, receiver manager or administrative
receiver with respect to any of the assets or undertaking of the Debtor, or (c)
the presentation of any petition or making of any order for the administration
or winding up of the Debtor or the taking of any other step in insolvency
proceedings with respect to the Debtor, or (d) the grant of any moratorium in
respect of the indebtedness of the Debtor or the entry into or proposal by the
Debtor of any composition or compromise with its creditors.

            "Investment Adviser" means Alliance Capital Management L.P. or such
other investment adviser as the Debtor may from time to time appoint with the
prior written consent of the Secured Party.

            "Investment Advisory Agreement" has the meaning assigned to that
term in the Preliminary Statements.

            "Investment Guidelines" has the meaning assigned to that term in the
Investment Advisory Agreement.

            "Local Business Day" means:

            (a) in relation to a transfer of cash or other property (other than
securities) under this Agreement, a day on which commercial banks are open for
business (including dealings in foreign exchange and foreign currency deposits)
in the place where the relevant account is located and, if different, in the
principal financial center, if any, of the currency of such payment;

            (b) in relation to a transfer of securities under this Agreement, a
day on which the clearance system agreed between the parties for delivery of the
securities is open for the acceptance and execution of settlement instructions
or, if delivery of the securities is contemplated by other means, a day on which
commercial banks are open for business (including dealings in foreign exchange
and foreign currency deposits) in the place(s) agreed between the parties for
this purpose;

            (c) in relation to a valuation under this Agreement, a day on which
commercial banks are open for business (including dealings in foreign exchange
and foreign currency deposits) in the place of location of the Custodian and in
the place(s) agreed between the parties for this purpose; and

            (d) in relation to any notice or other communication under this
Agreement, in the place specified in the address for notice most recently
provided by the recipient.

            "Notification Time" means 1:00 p.m., New York time, on a Local
Business Day.

            "Notice of Exclusive Control" has the meaning assigned to that term
in the Control Agreement.

                                       3
<PAGE>

            "Obligations" means all present and future obligations from time to
time of the Debtor under the Retrocession Agreement and this Agreement,
including but not limited to obligations relating to (a) reinsured losses and
allocated loss expenses paid by the Secured Party, but not recovered from the
Debtor, (b) reserves for reinsured losses reported and outstanding, (c) reserves
for reinsured losses incurred but not reported, and (d) reserves for allocated
reinsured loss expenses and unearned premiums.

            "Person" means an individual, partnership, corporation (including a
business trust), joint stock company, trust, unincorporated association, joint
venture or other entity, or a government or any political subdivision or agency
thereof.

            "Proceeds" has the meaning assigned to that term in Section
9-102(a)(64) of the UCC and, in any event, shall include, without limitation,
the following property: (i) whatever is acquired upon the sale, lease, license,
exchange, or other disposition of the Collateral, (ii) whatever is collected on,
or distributed on account of, the Collateral), (iii) rights arising out of the
Collateral, (iv) to the extent of the value of collateral, claims arising out of
the loss, nonconformity, or interference with the use of defects or infringement
of rights in, or damage to, the Collateral, or (v) to the extent of the value of
collateral and to the extent payable to the Debtor or the Secured Party,
insurance payable by reason of the loss or nonconformity of, defects or
infringement of rights in, or damage to, the Collateral.

            "Property" means, with respect to any Person, any money, cash, cash
equivalents, securities, investments, financial assets, security entitlements or
other investment property.

            "Qualifying Assets" means and includes any security that conforms
with the criteria set forth in the Investment Guidelines.

            "Reinsurance Contracts" has the meaning assigned to that term in the
Retrocession Agreement.

            "Relevant Event" means any one or more of the fo11owing: (a) an
Event of Default, or (b) the Debtor's failure to perform or otherwise comply or
procure compliance with any of its obligations under the Retrocession Agreement,
other than a failure constituting an Event of Default, if such failure continues
for five Local Business Days after receiving from the Secured Party a written
notice thereof, or (c) the Debtor's failure to perform or otherwise comply with
any of its obligations under this Agreement, or (d) any Insolvency Event, or
(e) the Investment Adviser's failure to comply with any investment objectives,
policies and restrictions as in effect from time to time under the Investment
Advisory Agreement, or (f) the Custodian's failure to perform or otherwise
comply with any of its obligations under the Control Agreement, or (g) the
Custodian's failure to perform or otherwise comply with any of its obligations
under the Custodian Agreement, if such failure impairs the security interest
granted to the Secured Party under this Agreement.

            "Requirement of Law" means, as to any Person, the certificate of
incorporation and by-laws or other organizational or governing documents of such
Person, and all Federal, state, local and foreign laws, rules and regulations,
the rules of the National Association of

                                       4
<PAGE>

Securities Dealers and all orders, judgments, decrees or other determinations of
any Governmental Authority or arbitrator, applicable to or binding upon such
Person or any of its property or to which such Person or any of its property is
subject.

            "Retrocedant Ceding Commission" has the meaning assigned to that
term in the Retrocession Agreement.

            "Retrocession Agreement" has the meaning assigned to that term in
the Preliminary Statements.

            "Securities Account" means the separate, segregated Securities
Account listed on Schedule I hereto and any other securities accounts and
sub-accounts which are established by the Custodian under, and subject to, the
Control Agreement.

            "Settlement Day" means, in relation to a date, (i) with respect to a
transfer of cash or other property (other than securities), the next Local
Business Day and (ii) with respect to a transfer of securities, the first Local
Business Day after such date on which settlement of a trade in the relevant
securities, if effected on such date, would have been settled in accordance with
customary practice when settling through the clearance system agreed between the
parties for delivery of such securities or, otherwise, on the market in which
such securities are principally traded (or, in either case, if there is no such
customary practice, on the first Local Business Day after such date on which it
is reasonably practicable to deliver such securities).

            "Substitute Credit Support" has the meaning assigned to that term in
Section 306(a).

            "Substitution Notice" has the meaning assigned to that term in
Section 3.06(a).

            "UCC" means the Uniform Commercial Code as in effect from time to
time in the Commonwealth of Massachusetts. All terms used herein without
definitions that are defined in the UCC shall have the respective meanings given
to those terms in the UCC, except where the context otherwise requires.

            "USD" means United States Dollars.

                                   ARTICLE II

                                SECURITY INTEREST

            Section 2.01 Grant of Security Interest. (a) The Debtor hereby
assigns, pledges, conveys, sets over and transfers unto the Secured Party, and
does hereby grant to the Secured Party, a continuing first priority security
interest (subject to the Custodian Lien) in all of the right, title and interest
of the Debtor in, to and under all of the following, whether now existing or
hereafter from time to time acquired (collectively, the "Collateral"):

            (i) the Deposit Account, including any credit or other balances of
      account credited thereto or carried therein or other amounts transferred
      thereto;

                                       5
<PAGE>

            (ii) the Securities Account, including any credit or other balances
      of account credited thereto or carried therein or other amounts
      transferred thereto;

            (iii) all Qualifying Assets, all other Property transferred or
      required to be transferred from time to time in, or credited to or
      required to be credited from time to time to, the Collateral Accounts;
      provided, however, that, except as expressly provided in Section 4.04,
      Distributions shall not constitute Collateral;

            (iv) all rights, claims and causes of action, if any, that the
      Debtor may have against any Person in respect of the foregoing; and

            (v) all Proceeds of any or all of the other Collateral.

            (b) The Debtor agrees that this Agreement, the security interest
granted pursuant to this Agreement and all rights, remedies, powers and
privileges provided to the Secured Party under this Agreement are in addition to
and not in any way affected or limited by any other security now or at any time
held by the Secured Party to secure payment and performance of the Obligations.

            Section 2.02 Security for Obligations. The Collateral secures the
prompt and complete payment and performance of all the Obligations.

            Section 2.03 Continued Perfection of Security Interest. This
Agreement shall create a continuing security interest in the Collateral and
shall remain in full force and effect until the payment and performance in full
of the Obligations. The security interest created under this Agreement shall not
be impaired by any intermediate payment or performance of the whole or any part
of the Obligations but shall secure the ultimate balance of the Obligations. The
Debtor agrees that it will not take any actions or fail to perform any of its
duties or obligations under this Agreement so that after giving effect to such
action or inaction the Secured Party will then, or with the passage of time,
cease to have a first priority perfected security interest (subject to the
Custodian Lien) in any of the Collateral; provided, however, that investments,
cash, securities, interest, dividends, financial assets or any other Property
withdrawn from the Collateral Accounts in accordance with Section 3.02(b),
3.06(b), 4.03(a) or 6.01 shall not be Collateral from and after the time of such
withdrawal.

            Section 2.04 Power of Attorney. The Debtor hereby irrevocably
appoints the Secured Party as its attorney-in-fact with right of substitution,
so that the Secured Party or any other Person empowered by the Secured Party
shall be authorized, without need of further authorization from the Debtor, at
any time upon the occurrence of and during the continuance of any Relevant
Event, in the Secured Party's discretion to take any and all actions authorized
or permitted to be taken by the Secured Party under this Agreement or by law,
including but not limited to the power to:

            (a) take any action and execute or otherwise authenticate any
      instrument or other record which the Secured Party may deem necessary or
      advisable to accomplish the purposes of this Agreement, including but not

                                       6
<PAGE>
            limited to, perfection of the security interest created under this
            Agreement in any jurisdiction in any part of the world;

                  (b) execute any transfer, bill of sale or other assurance in
            respect of the Collateral;

                  (c) exercise all the rights and powers of the Debtor in
            respect of the Collateral;

                  (d) ask for, demand, collect, sue for, recover, receive and
            give acquittance and receipts for moneys due and to become due under
            or in connection with the Collateral;

                  (e) receive, indorse, and collect any drafts or other
            instruments, documents and chattel paper, in connection therewith;
            and

                  (f) file any claims or take any action or institute any
            proceedings which the Secured Party may deem necessary or desirable
            for the collection of any of the Collateral or otherwise to enforce
            the rights of the Secured Party with respect to any of the
            Collateral.

            The Debtor hereby confirms and ratifies any and all actions and
things performed or done by the Secured Party as the Debtor's attorney-in-fact
or any of its representatives in each case pursuant to the powers granted
hereunder.

            This special power of attorney shall be deemed coupled with an
interest, and cannot be revoked by the Debtor until all of the Obligations have
been paid and performed in full and the Retrocession Agreement has been
terminated.

                                  ARTICLE III

                           CREDIT SUPPORT OBLIGATIONS

            Section 3.01 Initial Deposit of Collateral. On the date of this
Agreement, the Debtor is transferring, or causing to be transferred, into the
Collateral Accounts Qualifying Assets having a fair market value as at the date
of this Agreement at least equal to 100% of the premia ceded by the Secured
Party to the Debtor under the Retrocession Agreement.

            Section 3.02 Excess Reserves. (a) As of the end of each calendar
quarter, the Debtor shall calculate the fair market value of the Assets held in
the Collateral Accounts as of the last day of such quarter (such amount, the
"Ending Asset Value") and the aggregate loss, loss adjustment expense reserves,
unearned premium reserves, Retrocedant Ceding Commission and other reserves
related to the Reinsurance Contracts as reflected in Debtor's management
accounts, as of the last day of such quarter (the "Ending Reserves") and shall
provide such calculation to the Secured Party within forty-five days of the end
of such quarter.

                                       7
<PAGE>

            (b) The excess of the Ending Reserves over the Ending Asset Value,
if any, shall be the "Excess Reserves". To the extent the Ending Reserves exceed
the Ending Asset Value, the Debtor shall within 3 Local Business Days deposit
sufficient Qualifying Assets with a fair market value equal to such Excess
Reserves. To the extent the Ending Asset Value exceeds the Ending Reserves, the
Secured Party shall, upon the Debtor's request, join the Debtor in instructing
the Custodian to release Collateral with a fair market value equal to the amount
of such excess, provided, however, that no Relevant Event has occurred and is
continuing.

            Section 3.03 Disputed Calculations or Valuations. Upon receipt of
the quarterly calculation from the Debtor, the Secured Party shall have the
right to reasonably object to such calculation and to offer a reasonable
proposal for the amount of the reserves described in Section 3.02 hereof. If the
parties in good faith are not able to resolve the disagreement within two weeks
of the Secured Party's indication of disagreement, the parties shall mutually
agree upon an independent actuarial firm to determine an appropriate level of
aggregate reserves as described in Section 3.02 hereof with respect to the
Reinsurance Contracts, such level to be no more than the amount proposed by the
Secured Party and no less than the amount reported by the Debtor, and both
parties agree to be bound by such determination. In such case the Debtor shall
deposit sufficient Qualifying Assets with a fair market value equal to Excess
Reserves (if any) within 3 Local Business Days after receipt of the actuary
report. The fees and expenses of the actuarial firm shall be shared equally by
the Debtor and the Secured Party.

            Section 3.04 Transfers. Subject to Section 3.03 and unless otherwise
agreed between the parties from time to time, if an obligation to transfer
Qualified Assets or Collateral has become due by the Notification Time, then the
relevant transfer will be made not later than the close of business on the
Settlement Day relating to the date such obligation has become due; if an
obligation becomes due after the Notification Time, then the relevant transfer
will be made not later than the close of business on the Settlement Day relating
to the day after the date such obligation became due.

            Section 3.05 Calculations. The parties agree that valuations
calculated by the Debtor or, as the case may be, by the Secured Party for the
purpose of this Agreement shall prevail over any valuations performed by or for
the Investment Adviser pursuant to the terms of the Investment Advisory
Agreement.

            Section 3.06 Substitutions.

            (a) The Debtor (acting, where applicable, through the Investment
Adviser) may on any Local Business Day by notice (a "Substitution Notice")
inform the Secured Party and the Custodian that it wishes to substitute the
Qualified Assets specified in that Substitution Notice (the "Substitute Credit
Support") for certain Qualified Assets specified in the Substitution Notice and
held in the Collateral Accounts (the "Original Credit Support").

            (b) Following the service of such Substitution Notice, the Original
Credit Support shall be released, upon written instructions by the Debtor, to
the Debtor against delivery of the Substitute Credit Support (or an undertaking
for such delivery) in accordance

                                       8
<PAGE>

with the customary settlement procedures; provided, however, that no Relevant
Event has occurred and is continuing.

                                   ARTICLE IV

                                   COLLATERAL

            Section 4.01 No Duty. Except to the extent otherwise required by
applicable law, the Secured Party will have no duty with respect to Collateral,
including, without limitation, any duty to collect any Distributions, or enforce
or preserve any rights pertaining to Collateral.

            Section 4.02 Custodians.

            (a) The Debtor shall appoint the Custodian to hold Collateral in
accordance with the Control Agreement, and the Debtor shall cause all such
Collateral to be transferred to, and held by, the Custodian.

            (b) The Debtor shall be liable for the acts or omissions of the
Custodian and the Investment Adviser to the same extent that the Debtor would be
liable under this Agreement for its own acts or omissions.

            Section 4.03 Maintenance of Collateral Accounts. In addition to, and
not in limitation or in lieu of, the obligation of Custodian to honor
entitlement orders as provided in the Control Agreement,

            (a) the Secured Party agrees that until such time, if any, that the
Secured Party delivers a Notice of Exclusive Control to the Custodian, the
Debtor shall be entitled (i) subject to Section 3.06(b), to give entitlement
orders and all other forms of instructions to invest, through the Investment
Adviser, where applicable, the Collateral held in the Collateral Accounts solely
in cash or categories of securities defined as Qualified Assets, which upon
their acquisition shall constitute the Collateral, (ii) subject to Section
4.04,to receive and give entitlement orders and all other forms of instructions
with respect to all Distributions (subject, where applicable, to prior deduction
by the Custodian of any fees or expenses owed to Custodian by the Debtor for the
provision of its custodial services from time to time), and (iii) to exercise,
or to direct the Custodian to exercise on its behalf, any voting rights attached
to any of the Collateral (but only in a manner consistent with the terms of this
Agreement); provided that the Debtor shall not have the authority to (x)
terminate or close the Collateral Accounts, or (y) sell, transfer, exchange,
assign, lease or hire out, factor, discount, license, lend, part with its
interest in or otherwise dispose of any of the Collateral or permit the same to
occur, or agree to do any of the foregoing, without prior written consent of the
Secured Party, except, in each case, as expressly permitted under this
Agreement. The Secured Party agrees that (i) until a Relevant Event occurs or
unless a Relevant Event would be caused by a proposed substitution of Collateral
by the Debtor, it shall not give entitlement orders, deliver Notice of Exclusive
Control or give any other forms of instructions with regard to the Collateral
Accounts and the financial assets and other Property on deposit therein or
credited thereto (other than joint instructions in accordance with this
Agreement), and (ii) it shall join the Debtor in giving

                                       9
<PAGE>

instructions requested by or on behalf of the Debtor so long as no Relevant
Event then exists or would be caused by the execution of such instructions.

            (b) if at any time the Secured Party delivers a Notice of Exclusive
Control to the Custodian, the Debtor agrees that, from and after delivery
thereof until the written revocation or rescission of such notice by the Secured
Party, (i) the Secured Party shall be the sole Person to give all entitlement
orders and other demands and instructions with respect to the Collateral
Accounts or any financial asset credited thereto or carried therein or any other
Collateral, (ii) if it has received any Collateral from the Custodian in
violation of the terms of the Control Agreement, it shall hold such Collateral
in trust for the Secured Party and shall promptly thereafter deliver such
Collateral to the Secured Party and (iii) it shall execute and deliver, and use
its best efforts to cause the Custodian to execute and deliver, to the Secured
Party all proxies and other instruments as the Secured Party may reasonably
request for the purpose of enabling the Secured Party to exercise any voting or
other consensual rights pertaining to any Collateral. Notice of Exclusive
Control shall be deemed to be revoked or rescinded upon receipt by the Custodian
from the Secured Party of written notice thereof. The Secured Party agrees to
deliver a notice of revocation or rescission upon request of the Debtor at any
time when no Relevant Event has occurred or is continuing.

            Section 4.04 Distributions. Subject, where applicable, to prior
deduction by the Custodian of any fees or expenses owed to the Custodian by the
Debtor for the provision of its custodial services from time to time, the
Custodian shall transfer the Distributions to the Debtor within 10 days
following the end of each calendar month, upon proper written instructions by
the Debtor, to Debtor's custodial account held with the Custodian or any other
account designated by the Debtor; provided, however, that the Secured Party has
not delivered a Notice of Exclusive Control that has not been revoked or
rescinded by the Secured Party, and that a Relevant Event has not occurred and
is continuing. The Secured Party shall execute such instructions, if any, as may
be required to permit such credit to be effected. Any Distributions (or portion
thereof) not transferred pursuant to this Section 4.04 shall constitute
Collateral and will be subject to the security interest granted under Section
2.01(a) or otherwise will be subject  to the set-off provided in Section
6.01(c).

                                   ARTICLE V

               GENERAL REPRESENTATIONS, WARRANTIES AND COVENANTS

            The Debtor represents, warrants and covenants, which
representations, warranties and covenants shall be deemed to be repeated as of
each date on which the Debtor transfers, or causes to be transferred, any
Qualified Assets into the Collateral Accounts and shall survive execution and
delivery of this Agreement and the payment in full of the Obligations, as
follows:

            Section 5.01 Power to Grant Security Interest. The Debtor has the
power to grant a security interest in any Collateral pursuant hereto and has
taken all necessary actions to authorize the granting of that security interest.

                                       10
<PAGE>

            Section 5.02 Necessary Filings. All filings, registrations and
recordings necessary or appropriate to create, preserve, protect and perfect, to
the extent a security interest may be perfected thereby, the security interest
granted by the Debtor to the Secured Party hereby in respect of the Collateral
have been accomplished, and the first priority security interest granted to the
Secured Party pursuant to this Agreement (subject to the Custodian Lien) in and
to the Collateral constitutes a valid first priority perfected security interest
which is superior and prior to the rights of all other Persons (other than the
Custodian Lien) and enforceable against the Debtor (including in Bermuda) and,
in each case, subject to no other Liens, sales, assignments, conveyances,
settings over or transfers.

            Section 5.03 No Liens. The Debtor is the owner of all Collateral
free from any Lien or other right, title or interest of any Person (other than
the Custodian Lien), and the Debtor shall defend such Collateral against all
claims and demands of all Persons at any time claiming the same or any interest
therein adverse to the Secured Party.

            Section 5.04 Other Financing Statements. There is no financing
statement (or similar statement or instrument of registration under the law of
any jurisdiction) covering or purporting to cover any interest of any kind in
the Collateral, and so long as any of the Obligations remain unpaid, the Debtor
will not execute or authorize to be filed in any public office any financing
statement (or similar statement or instrument of registration under the law of
any jurisdiction) or statements relating to the Collateral, except financing
statements filed or to be filed in respect of and covering the security
interests granted hereby.

            Section 5.05 Consents. No consent of any Person and no
authorization, approval or other action by, and no notice to or filing with, any
Governmental Authority of any jurisdiction is required as of the date of the
execution and delivery of this Agreement for (i) the grant by the Debtor of the
pledge, assignment and security interest granted hereby with respect to the
Collateral, (ii) the execution, delivery or performance of this Agreement by the
Debtor, (iii) the pledge, assignment and security interest created hereby with
respect to the Collateral (including the first priority nature of such pledge,
assignment and security interest with respect to the Collateral (subject to the
Custodian Lien)) other than the execution and delivery of the Control Agreement
and filing of appropriate financing statements or similar filings or
notifications in respect of the Collateral or (iv) the exercise by the Secured
Party of the rights provided for in this Agreement or the remedies in respect of
the Collateral pursuant to this Agreement.

            (b) The Debtor shall use its best efforts to obtain after the date
of the execution and delivery of this Agreement such other consents,
authorizations, and approvals and obtain such other actions by, and provide such
notices to or make such filings with, any Governmental Authority of any
jurisdiction as may be, in the reasonable judgment of the Secured Party,
necessary after the date of this Agreement (i) for the grant by the Debtor of
the pledge, assignment and security interest granted hereby or for the
execution, delivery or performance of this Agreement by the Debtor, (ii) for the
pledge, assignment and security interest created hereby with respect to the
Collateral (including the first priority nature of such pledge. assignment and
security interest with respect to the Collateral (subject to the Custodian
Lien)) or (iii) for the exercise by the Secured Party of the rights, remedies
and powers provided for in this Agreement or the remedies in respect of the
Collateral pursuant to this Agreement.

                                       11
<PAGE>

            Section 5.06 Further Actions. The Debtor will, at its own expense,
make, execute, endorse, acknowledge, or otherwise authenticate and file and/or
deliver to the Secured Party from time to time such confirmatory assignments,
conveyances, financing statements, transfer endorsements, powers of attorney,
certificates and other assurances, instruments or other records, and take such
further steps relating to the Collateral and other property or rights covered by
the interests hereby granted, which the Secured Party, upon written direction,
deems reasonably appropriate or advisable to perfect, preserve or protect its
security interests in the Collateral.

            Section 5.07 Financing Statements. The Debtor agrees to execute or
otherwise authenticate (if necessary) and deliver to the Secured Party such
financing statements (or similar statement or instrument of registration under
the law of any jurisdiction), in form acceptable to the Secured Party as it may
from to time reasonably request or as are necessary or desirable time in its
reasonable opinion to establish and maintain the security interests
contemplated hereunder as valid, enforceable and first priority security
interests (subject to the Custodian Lien) as provided herein and the other
rights and security contemplated herein, all in accordance with the UCC as
enacted in any and all relevant jurisdictions or any other Requirement of Law.
The Debtor will pay any applicable filing fees and related expenses. The Debtor
authorizes the Secured Party to file any such financing statements without the
signature of the Debtor.

                                   ARTICLE VI

                   REMEDIES UPON OCCURRENCE OF RELEVANT EVENT

            Section 6.01 Remedies; Obtaining and Disposition of the Collateral
Upon Default. The Debtor agrees that, if any Relevant Event has occurred and is
continuing, then and in every such case, subject to any Requirements of Law, the
Secured Party may:

            (a) deliver a Notice of Exclusive Control, instructions or
entitlement orders with respect to the Collateral Accounts or the Collateral;

            (b) exercise in respect of the Collateral, in addition to other
rights and remedies provided for herein or otherwise available to it, all the
rights and remedies of a secured party upon default under the UCC to enforce
this Agreement and the security interest contained herein, and also may (A) if
applicable, require the Debtor to, and the Debtor hereby agrees that it will at
its expense and upon request of the Secured Party forthwith, assemble all or
part of the Collateral as directed by the Secured Party and make it available to
the Secured Party at a place to be designated by the Secured Party that is
reasonably convenient to both parties, or (B) without notice except as specified
below, sell the Collateral or any part thereof in one or more parcels at public
or private sale, at any of the Secured Party's offices or elsewhere, for cash,
on credit or for future delivery, and upon such other terms as the Secured Party
may deem commercially reasonable. The Debtor agrees that, to the extent notice
of sale shall be required by law, at least thirty (30) days' notice to the
Debtor of the time and place of any public sale or the time after which any
private sale is to be made shall constitute reasonable notification. The Secured
Party shall not be obligated to make any sale of Collateral regardless of notice
of sale having been given. The Secured Party may adjourn any public or private
sale from time to time

                                       12
<PAGE>

by announcement at the time and place fixed therefor, and such sale may, without
further notice, be made at the time and place to which it was so adjourned;

            (c) hold any money held by the Secured Party as Collateral and all
cash proceeds received by the Secured Party in respect of any sale of,
collection from, or other realization upon all or any part of the Collateral, as
collateral for, and/or, then, or at any time thereafter, apply such amounts, in
whole or in part, against all or any part of the Obligations, and to make any
currency conversions or effect any transaction in currencies which it thinks
fit, and to do so at such times and rates as it thinks proper; and

            (d) exercise any and all rights and remedies of the Debtor under or
in respect of the Collateral.

            Section 6.02 Waiver of Claims. Except as otherwise provided in this
Agreement, the Debtor hereby waives, to the extent permitted by all Requirements
of Law:

            (a) all damages occasioned by taking of possession except any
damages which are the direct result of the gross negligence or willful
misconduct of the Secured Party or any Person acting on its behalf or
instruction;

            (b) all other requirements as to the time, place and terms of sale
or other requirements with respect to the enforcement of the Secured Party's
rights hereunder; and

            (c) all rights of redemption, appraisement, valuation, stay,
extension or moratorium now or hereafter in force under any Requirement of Law
in order to prevent or delay the enforcement of this Agreement (including,
without limitation, any right to claim that such enforcement should be stayed
pending the outcome of any other action or proceeding (including any arbitration
proceeding)) or the absolute sale of the Collateral or any portion thereof, and
the Debtor, for itself and all who may claim under it, insofar as it or they now
or hereafter lawfully may, hereby waives the benefit of all such Requirements of
Law.

            Any sale of, or the grant of options to purchase, or any other
realization upon, any Collateral shall operate to divest all right, title,
interest, claim and demand, either at law or in equity, of the Debtor therein
and thereto, and shall be a perpetual bar both at law and in equity against the
Debtor and against any and all Persons claiming or attempting to claim the
Collateral so sold, optioned or realized upon, or any part thereof, from,
through and under the Debtor.

            Section 6.03 Deficiencies and Excess Proceeds. The Secured Party
shall transfer, or cause to be transferred, to the Debtor any proceeds and
Collateral remaining after exercising remedies under Section 6.01 and after
satisfaction in full of all amounts payable by the Debtor with respect to any
Obligations. For the avoidance of doubt, it is understood that the Debtor shall
remain liable to the extent of any deficiency between the amount of the proceeds
of the Collateral and the aggregate amount of the Obligations.

            Section 6.04 Remedies Cumulative. No failure or delay on the part of
the Secured Party, in exercising any right, power or privilege hereunder and no
course of dealing between the Debtor and the Secured Party shall operate as a
waiver hereof; nor shall any single or partial exercise of any right, power or
privilege hereunder preclude any other or further

                                       13
<PAGE>

exercise hereof or the exercise of any other right, power or privilege
hereunder. The rights, powers and remedies herein expressly provided are
cumulative and not exclusive of any rights, powers or remedies which the Secured
Party would otherwise have. No notice to or demand on the Debtor in any case
shall entitle the Debtor to any other or further notice or demand in similar or
other circumstances or constitute a waiver of the rights of the Secured Party to
any other or further action in any circumstances without notice or demand.

            Section 6.05 Discontinuance of Proceedings. In case the Secured
Party shall have instituted any proceeding to enforce any right, power or remedy
under this Agreement by foreclosure, sale, entry or otherwise, and such
proceeding shall have been discontinued or abandoned for any reason or shall
have been determined adversely to the Secured Party, then and in every such case
the Debtor, the Secured Party shall be restored to their former positions and
rights hereunder with respect to the Collateral subject to the security interest
created under this Agreement, and all rights, remedies and powers of the
Secured Party shall continue as if no such proceeding had been instituted.

                                  ARTICLE VII

                                 MISCELLANEOUS

            Section 7.01 Expenses.

            (a) Except as otherwise provided in this Section 7.01(b) and
7.01(c), each party will pay its own costs and expenses (including any stamp,
transfer or similar transaction tax or duty payable on any transfer it is
required to make under this Agreement) in connection with performing its
obligations under this Agreement and neither party will be liable for any such
costs and expenses incurred by the other party.

            (b) The Debtor shall promptly pay when due all taxes, assessments or
charges of any nature that are imposed with respect to Collateral upon becoming
aware of the same.

            (c) All reasonable costs, expenses, charges and fees paid or
incurred by the Secured Party in the exercise of any of the rights, remedies or
powers granted hereunder shall be for the account of the Debtor, and the Debtor
undertakes promptly on demand to pay the same or, as the case may be, to
reimburse the Secured Party and/or its agents, representatives, successors and
assigns as the case may be, for any monies paid by it with interest thereon to
the extent that there are then insufficient funds available in the Collateral
Accounts for this purpose.

            Section 7.02 Notices. All communications between the parties hereto
or notices provided herein to be given may be given to the following addresses:

            If to the Secured Party:

                        St. Paul Reinsurance Company Limited
                        27 Camperdown Street
                        London El 8DS

                                       14
<PAGE>

                        United Kingdom
                        Attn: Company Secretary
                        Facsimile No.: 44-207-488-6345

            If to the Debtor:

                        Platinum Re (UK) Limited
                        52 Lime Street
                        London EC3M 7NL
                        United Kingdom
                        Attn: Guy Butler
                        Facsimile No.: 44-207-623-66 10

            All notices or other communications required or permitted to be
given hereunder shall be in writing and shall be considered as properly given
(a) if delivered in person, (b) if sent by internationally recognized overnight
delivery service, or (c) if sent by facsimile transmission. Notice so given
shall be effective upon receipt by the addressee; provided, however, that if any
notice is tendered during normal business hours on a Local Business Day to an
addressee in accordance with this Section 7.02 and the delivery thereof is
refused by such addressee, such notice shall be effective upon such tender. Any
party shall have the right to change its address for notice hereunder to any
other location by the giving of 30 days notice to the other parties in the
manner set forth hereinabove.

            Section 7.03 Instructions. All entitlement orders and other
instructions and communications that the Debtor is entitled, or desires, to give
or make under this Agreement may be given or made either by the Debtor itself or
by the Investment Adviser, acting on behalf of the Debtor. All entitlement
orders and other instructions and communications that the Secured Party is
entitled, or desires, to give or make under this Agreement may be given or made
either by the Secured Party itself or by its attorney in fact.

            Section 7.04 Waiver; Amendment. This Agreement may be changed,
waived, discharged, or terminated only by an instrument in writing executed by
all of the parties hereto.

            Section 7.05 Obligations Absolute. The obligations of the Debtor
under this Agreement shall be absolute and unconditional and shall remain in
full force and effect without regard to, and shall not be released, suspended,
discharged, terminated or otherwise affected by, any circumstance or occurrence
whatsoever, including, without limitation: (a) any renewal, extension, amendment
or modification of, or addition or supplement to or deletion from, the
Retrocession Agreement or any other instrument or agreement referred to therein,
or any assignment or transfer of any thereof; (b) any waiver, consent,
extension, indulgence or other action or inaction under or in respect of any
such instrument or agreement or this Agreement or any exercise or non-exercise
of any right, remedy, power or privilege under or in respect of this Agreement
or the Retrocession Agreement or any other instrument or agreement referred to
therein; (c) any furnishing of any additional security to the Secured Party or
any acceptance thereof or any sale, exchange, release, surrender or realization
of or upon any security by the

                                       15
<PAGE>

Secured Party; or (d) any invalidity, irregularity or unenforceability of all or
part of the Obligations or of any security therefor.

            Section 7.06 Successors and Assigns. This Agreement shall be binding
upon and inure to the benefit of and be enforceable by the respective successors
and assigns of the parties hereto; provided, however, that the Debtor may not
assign or transfer any of its rights or obligations hereunder without the prior
written consent of the Secured Party.

            Section 7.07 Headings Descriptive, etc. The headings of the sections
and subsections of this Agreement are inserted for convenience only and shall
not in any way affect the meaning or construction of any provision of this
Agreement.

            Section 7.08 Governing Law; Submission to Jurisdiction and Venue.
This Agreement is a contract made under the laws of The Commonwealth of
Massachusetts of the United States of America and shall for all purposes be
governed by and construed in accordance with the laws of such Commonwealth. Any
legal action or proceeding against the Debtor with respect to this Agreement may
be brought in the courts of The Commonwealth of Massachusetts in the County of
Suffolk, or in the federal courts of the United States for the District of
Massachusetts, it being understood that nothing herein shall affect the right of
the Secured Party to serve process in any other manner permitted by law or to
commence legal proceedings or otherwise proceed against the Debtor in any
jurisdiction, and, by execution and delivery of this Agreement, the Debtor
hereby irrevocably accepts for itself and in respect of its property, generally
and unconditionally, the jurisdiction of the aforesaid courts. The Debtor agrees
that a judgment, after exhaustion of all available appeals, in any such action
or proceeding shall be conclusive and binding upon the Debtor, and may be
enforced in any jurisdiction, by a suit upon such judgment, a certified copy of
which shall be conclusive evidence of the judgment.

            (b) The Debtor hereby irrevocably waives any objection which it may
now or hereafter have to the laying of venue of any of the aforesaid actions or
proceedings arising out of or in connection with this Agreement brought in the
courts referred to in clause (a) above and hereby further irrevocably waives and
agrees not to plead or claim in any such court that any such action or
proceeding brought in any such court has been brought in an inconvenient forum.

            Section 7.09 Waiver of Jury Trial. Each of the Debtor and the
Secured Party hereby irrevocably waives all right to trial by jury in any
action, proceeding or counterclaim arising out or relating to this Agreement,
or any other instrument or document delivered hereunder or thereunder.

            Section 7.10 Termination; Release. This Agreement shall terminate on
the earlier of (i) the irrevocable payment and performance in full or
termination or waiver of the Obligations (other than contingent surviving
obligations), as confirmed by a joint notice from the Debtor and the Secured
Party, or (ii) such time as the Debtor delivers a notice to the Secured Party
and the Custodian that the Ending Reserves so reported by the Debtor do not
exceed USD 100 million as of two consecutive calendar years ends, provided,
however, that no Relevant Event shall have occurred and be continuing. Upon such
termination, the Secured Party shall, at the Debtor's expense, execute and
deliver to the Debtor such documents, and take such other acts, as the Debtor
shall reasonably request to evidence, or give effect to, such termination.

                                       16
<PAGE>

            Section 7.11 Reinstatement. Notwithstanding anything herein to the
contrary, this Agreement shall continue to be effective, or be reinstated, as
the case may be, if at any time payment, or any part thereof, of any of the
Obligations is rescinded or must otherwise be restored or returned by the
Secured Party upon the insolvency, bankruptcy, dissolution, liquidation or
reorganization of the Debtor, or upon or as a result of the appointment of a
receiver, intervenor or conservator of, or trustee or similar officer for, the
Debtor or any substantial part of its property, or otherwise, all as though such
payments had not been made.

            Section 7.12 Counterparts. This Agreement may be executed in
counterparts, each of which when so executed and delivered shall be an original,
and both of which shall together constitute one and the same instrument.

            Section 7.13 Severability. In case any one or more of the provisions
contained in this Agreement shall be invalid, illegal or unenforceable in any
respect, the validity, legality and enforceability of the remaining provisions
contained herein shall not in any way be affected and/or impaired thereby.

                           [SIGNATURE PAGE FOLLOWS.]

                                       17
<PAGE>

            IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed and delivered by their proper and duly authorized officers as
of the day and year first above written.

                                             PLATINUM RE (UK) LIMITED, as Debtor

                                             By:________________________________
                                             Name:
                                             Title:

                                             ST. PAUL REINSURANCE COMPANY
                                             LIMITED, as Secured Party

                                             By:________________________________
                                             Name:
                                             Title:

<PAGE>

                                                                      SCHEDULE I

                              COLLATERAL ACCOUNTS

                                Deposit Account

<TABLE>
<CAPTION>
             Description                                         Number
<S>                                                             <C>
    Platinum Re (UK) fbo St.Paul Re                             54798137
</TABLE>

                               Securities Account

<TABLE>
<CAPTION>
             Description                                         Number
<S>                                                              <C>
   Platinum Re (UK) fbo St. Paul Re                               CIW8
</TABLE>

                                      S-1

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