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                                                                   Exhibit 10.20

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

                                 BY AND BETWEEN

                   ST. PAUL FIRE AND MARINE INSURANCE COMPANY

                                  (RETROCEDANT)

                                       and

                    PLATINUM UNDERWRITERS REINSURANCE, INC.

                               (RETROCESSIONAIRE)

                            DATED AS OF________, 2002

         This QUOTA SHARE RETROCESSION Agreement (this "AGREEMENT"),
effective as of 12:01 a.m. New York time on the 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 Fire and Marine
Insurance Company, a Minnesota domiciled insurance company ("RETROCEDANT"),
and Platinum Underwriters Reinsurance, Inc. (formerly known as USF&G Family
Insurance Company), a Maryland domiciled stock insurance company
("RETROCESSIONAIRE").

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

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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:

                                  ARTICLE I

                          BUSINESS COVERED; EXCLUSIONS

         Retrocedant hereby obligates itself to retrocede to Retrocessionaire
and Retrocessionaire hereby obligates itself to accept, pursuant to the terms
of this Agreement, a one hundred percent (100%) quota share of any and all
liabilities incurred by Retrocedant on or after January 1, 2002 but not yet
paid as of the Effective Time, net of Inuring Retrocessions (as defined in
Section 7.01 herein), under all reinsurance and retrocession contracts (each,
a "REINSURANCE CONTRACT") that

         (i) are underwritten by St. Paul Re on behalf of Retrocedant, incept
on or after January 1, 2002 and belong to the classes specified in Exhibit
A-1 hereto (solely for the convenience of the parties, Exhibit A-2 sets forth
Loss Reserves (as defined in Exhibit B hereto), over all such Reinsurance
Contracts, by Class of Business (as defined below), each as of June 30,
2002), or

         (ii) are new or renewal contracts entered into by Retrocedant
pursuant to Article III, paragraph (a) of the Underwriting Management
Agreement between Retrocedant and Retrocessionaire of even date herewith.

         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 are 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 (the "FLOOD
LIABILITIES").

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         With respect to any named storm(s) (which are any tropical cyclones
assigned a name by the National Hurricane Center) 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 any subsidiary of The St. Paul, as cedant, and
a subsidiary of Platinum Holdings as retrocessionaire.

         The Flood 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.

                                    ARTICLE II

                                      TERM

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

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                                   ARTICLE III

                                    COVERAGE

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

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

         SECTION 3.03 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.

                                   ARTICLE IV

                      PREMIUMS AND ADDITIONAL CONSIDERATION

         SECTION 4.01      SECTION A (RETROSPECTIVE) COVERAGE PERIOD PREMIUM.

         (a) On the Effective Date, in respect of the Section A
(Retrospective) Coverage Period, Retrocedant shall pay to the account of
Retrocessionaire an 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 December 31, 2001 as filed with
the Minnesota Department of Commerce (consistent with the methods,
principles, practices and policies applied at June 30, 2002) and as submitted
to 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 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,

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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 4.01 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 of the Retrocedant as of the
Effective Date (the "Final Ceding 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 should have been included
in the Final Section A Premium, as determined pursuant to paragraph (b) of
this Section 4.01, less any amounts paid by Retrocedant on or after the
Effective Date pursuant to such Reinsurance Contract relating to such
reserves, plus interest on such amount at the Applicable Rate calculated from
and including the Effective Date to and including the date of such payment to
Retrocessionaire.

         (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
________, 2002, as set forth in

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Exhibit B, 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 4.01(d), shall be for the
account of Retrocessionaire and no such amounts shall be retained by or
payable to Retrocedant

         SECTION 4.02      SECTION B (PROSPECTIVE) COVERAGE PERIOD PREMIUMS.

         (a) On the Effective Date, in respect of the Section B (Prospective)
Coverage Period, Retrocedant shall transfer to Retrocessionaire an 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 7.04 and as allocated
pursuant to Exhibit E, 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, principles, practices
and policies employed in the preparation and presentation of Retrocedant's
annual statutory financial statement as of December 31, 2001 as filed with
the Minnesota Department of Commerce (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 December 31, 2001 as filed with
the Minnesota Department of Commerce (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

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the unearned ceding commission and net of Inuring Retrocession premiums as
provided for in Section 7.04 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 7.04 and as
allocated pursuant to Exhibit E.

         (d) Retrocedant shall retain all gross premiums 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.

         SECTION 4.03      DISPUTE RESOLUTION.

         (a) After receipt of the Proposed Accounting, together with the work
papers used in preparation thereof, Retrocessionaire shall have 30 days (the
"REVIEW PERIOD") to review such Proposed Accounting. Unless Retrocessionaire
delivers written notice to Retrocedant on or prior to the 30th day of the
Review Period stating that it has material objections 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. 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 B, 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

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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 daily 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 4.03(b), it being understood that arbitration according to Section
4.03(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 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 4.03(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 4.03(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
American Arbitration Association. All Arbiters and Umpires shall be active or
retired disinterested property/casualty actuaries of insurance or reinsurance
companies or Lloyd's of London Underwriters.

         (c) Each party shall present its case to the Arbiters within 30 days
following the date of appointment of the Umpire, unless the parties mutually
agree to an extension of time. Subject to the provisions of paragraph (f) of
this Section 4.03, the decision of the Arbiters shall be final and binding on
both parties; but failing to agree, they shall call in the Umpire and the
decision of the majority shall be final and binding upon both parties.
Judgment upon the final decision of the Arbiters may be entered in any court
of competent jurisdiction.

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

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

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         (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 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 4.03(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
4.03(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 4.03 represent the exclusive remedy for disputes
arising between the parties with respect to the Proposed Accounting and that
the dispute mechanisms set forth in Article XV shall be the exclusive remedy
for all disputes not relating to the Proposed Accounting.

                                   ARTICLE V

                          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 Underwriting
Management Agreement between Retrocedant and Retrocessionaire, 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.

                                   ARTICLE VI

                               ORIGINAL CONDITIONS

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

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                                   ARTICLE VII

                              INURING RETROCESSIONS

         SECTION 7.01 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 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.

         SECTION 7.02 TRANSFER. Retrocedant and Retrocessionaire shall use
their respective commercially reasonable efforts to obtain the consent of
Third Party Retrocessionaires under the Inuring Retrocessions to include
Retrocessionaire as an additional reinsured with respect to the Reinsurance
Contracts or, in the alternative, to make all payments directly to the
Retrocessionaire, to the extent allocable to the Reinsurance Contracts, in
the manner set forth in Exhibit D hereto, and to seek all payments, to the
extent allocable to the Reinsurance Contracts, in the manner set forth herein
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.

         SECTION 7.03      INURING RETROCESSIONS CLAIMS.

         (a) Each of the parties agrees to transfer to the other party all
recoveries or any portion thereof that such party receives on or after the
Effective Time pursuant to the Inuring Retrocessions which are allocated to
the other party, in the manner set forth in Exhibit 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.

         (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

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Retrocedant or Retrocessionaire shall be allocated between Retrocedant and
Retrocessionaire in the manner set forth in Exhibit F hereto.

         SECTION 7.04 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 4.02,
Retrocessionaire shall reimburse Retrocedant for one hundred percent (100%)
of any and all unearned premiums paid by Retrocedant under such Inuring
Retrocessions net of any applicable unearned ceding commissions paid to
Retrocedant thereunder.

         SECTION 7.05 ADDITIONAL CONSIDERATION. Retrocessionaire agrees to
pay 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.

         SECTION 7.06      TERMINATION OR 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 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 Retrocessionaire, such consent not to be unreasonably withheld.

                                  ARTICLE VIII

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

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

                                       11

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

                                 ARTICLE IX

                          EXTRA CONTRACTUAL OBLIGATIONS

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

                                  ARTICLE X

                     ADMINISTRATION OF REINSURANCE CONTRACTS

SECTION 10.01     ADMINISTRATION.

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

                                       12

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claims and handle all disputes thereunder and to effect any and all
amendments, commutations and cancellations of the Reinsurance Contract,
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, defense and settlement of any claim upon prior written notice
to Retrocedant. Upon receipt of such notice, Retrocedant shall not
compromise, discharge or settle such claim except with the prior written
consent of Retrocessionaire. Retrocessionaire shall not take any action in
the administration of such claim that would reasonably be expected to
adversely affect Retrocedant, its business or its reputation, without the
prior written consent of Retrocedant. Subject to the terms of Article IX
hereof, Retrocessionaire shall indemnify Retrocedant for all Losses,
including punitive, exemplary, compensatory or consequential damages arising
from such assumption of the conduct of such settlement pursuant to Article
XIV herein.

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

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

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

                                  ARTICLE XI

                             REPORTS AND REMITTANCES

                                       13

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

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

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

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

         SECTION 11.05 CURRENCY. For purposes of this Agreement, where
Retrocedant receives premiums or pays losses in currencies other than United
States dollars, such premiums or losses shall be converted into United States
dollars at the actual rates of exchange at which these premiums or losses are
entered in the Retrocedant's books.

                                   ARTICLE XII

                             MAINTENANCE OF LICENSES

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

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                                  ARTICLE XIII

                                ACCESS TO RECORDS

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

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

                                   ARTICLE XIV

                                 INDEMNIFICATION

         SECTION 14.01 INDEMNIFICATION BY RETROCEDANT. Retrocedant agrees to
indemnify, defend and hold harmless Retrocessionaire, and its officers,
directors and employees with respect to any and all Losses arising from any
breach by Retrocedant of any representation, warranty or covenant herein.
Retrocedant further agrees to indemnify, defend and hold harmless
Retrocessionaire and its officers, directors and employees against any and
all Losses arising out of Retrocedant's administration of the Reinsurance
Contracts, including but not limited to extracontractual obligations,
payments in excess of policy limits and settlements made in respect of any
such claims to

                                       15

<Page>

the extent arising from the gross negligence or willful misconduct of
Retrocedant except to the extent such actions are taken with the prior
consent or direction of Retrocessionaire. Such indemnification obligations
shall be limited to the aggregate of all fees paid to Retrocedant pursuant to
Section 11.04 hereof.

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

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

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

                                       16

<Page>

exceptions that would materially prejudice such Indemnitees, such Indemnitees
shall have the right to employ separate counsel to represent such Indemnitees
and in that event the reasonable fees and expenses of such separate counsel
(but not more than one separate counsel for all such Indemnitees reasonably
satisfactory to the Indemnifying Party) shall be paid by such Indemnifying
Party. If an Indemnifying Party elects not to assume responsibility for
defending a Third Party Claim, or fails to notify an Indemnitee of its
election as provided in this Article XIV, such Indemnitee may defend or
(subject to the remainder of this Article XIV) seek to compromise or settle
such Third Party Claim at the expense of the Indemnifying Party.

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

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

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

         (f) In the event of payment by an Indemnifying Party to any
Indemnitee in connection with any Third Party Claim, such Indemnifying Party
shall be subrogated to and shall stand in the place of such Indemnitee as to
any events or circumstances in

                                       17

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respect of which such Indemnitee may have any right or claim relating to such
Third Party Claim against any claimant or plaintiff asserting such Third
Party Claim or against any other Person. Such Indemnitee shall cooperate with
such Indemnifying Party in a reasonable manner, and at the cost and expense
of such Indemnifying Party, in prosecuting any subrogated right or claim.

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

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

                                    ARTICLE XV

                                   ARBITRATION

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

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

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

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

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<Page>

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

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

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

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

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

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

                                   ARTICLE XVI

                                   INSOLVENCY

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

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

                                       19

<Page>

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

         (c) As to all reinsurance made, ceded, renewed or otherwise becoming
effective under this Agreement, the reinsurance shall be payable as set forth
above by Retrocessionaire to Retrocedant or to its liquidator, receiver,
conservator or statutory successor, except (1) where the Reinsurance
Contracts specifically provide another payee in the event of the insolvency
of Retrocedant, and (2) where Retrocessionaire, with the consent of the
reinsured or reinsureds under the Reinsurance Contracts, has assumed such
Reinsurance Contract obligations of Retrocedant as direct obligations of
Retrocessionaire to the payees under such Reinsurance Contracts and in
substitution for the obligations of the Retrocedant to such payees.

                                  ARTICLE XVII

                                     OFFSET

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

                                 ARTICLE XVIII

                              ERRORS AND OMISSIONS

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

                                 ARTICLE XIX

                        CREDIT FOR REINSURANCE; SECURITY

         SECTION 19.01 CREDIT FOR REINSURANCE. Retrocessionaire shall take
all actions reasonably necessary, if any, to permit Retrocedant to obtain
full financial statement credit in all applicable U.S. jurisdictions for all
liabilities assumed by the Retrocessionaire pursuant to this Agreement,
including but not limited to loss and loss

                                       20

<Page>

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

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

         SECTION 19.03 SECURITY. Retrocessionaire shall establish and
maintain a trust fund for the benefit of Retrocedant as security for the
obligations of Retrocessionaire under this Agreement. The trust fund shall be
in a form reasonably satisfactory to Retrocedant and shall comply in all
material respects with the requirements under Maryland Insurance Law
applicable to trust funds established for credit for reinsurance purposes
except as explicitly set forth therein.

                                  ARTICLE XX

                            MISCELLANEOUS PROVISIONS

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

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

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

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

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obtaining of such injunctive relief shall not foreclose or limit in any way
relief against either party hereto for any monetary damage arising out of
such violation.

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

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

                           If to Retrocedant:

         St. Paul Fire and Marine Insurance Company
         385 Washington Street
         St. Paul, MN 55102
         Facsimile:  [ NO.      ]
         Attention:  [TITLE]

                           If to Retrocessionaire:

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

         SECTION 20.07 WIRE TRANSFER. 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.
         Citibank
         Newcastle, Delaware
         Account Number 38660864
         Bank ABA Number 031100209.

         For credit to St. Paul Fire and Marine Insurance Company
         [  ]

                                       22

<Page>

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

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

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

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

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

                                       23

<Page>

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

                           St. Paul Fire and Marine Insurance Company

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

                           Platinum Underwriters Reinsurance, Inc.

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

                                       24

<Page>

                                   EXHIBIT A-1

                              REINSURANCE CONTRACTS

<Table>
<Caption>

------------------------------------------------------------------------------------------------------------------------------------
                                                          RESERVE   RESERVE                                   EFFECTIVE   EXPIRATION
CONTRACT        UY                 USER TITLE              CLASS    CLASS NAME       CEDANT NAME                DATE        DATE
------------------------------------------------------------------------------------------------------------------------------------
<S>            <C>    <C>                                 <C>       <C>              <C>                      <C>         <C>
                                                                    Non-
                                                                    traditional
00003631900    2001   Marine Non Marine Clash Xs           0340     B-1              Liberty                  30-Mar-01    29-Mar-02
------------------------------------------------------------------------------------------------------------------------------------
                                                                    Non-
                                                                    traditional
00003444100    2002   Marine Account Excess                0340     B-1              M.I.C. Simmonds          01-Jan-02    31-Dec-02
------------------------------------------------------------------------------------------------------------------------------------
                                                                    Non-
                                                                    traditional
M0000531700    2002   EXCESS OF LOSS PROTEC.2000           0340     B-1              Scor (Uk)                01-Jan-02    31-Dec-02
------------------------------------------------------------------------------------------------------------------------------------
                                                                    Non-
                                                                    traditional
00002528700    2002   Finite Non-Marine Excess of Lo       0340     B-1              Aioi Insurance Co        01-Apr-02    31-Mar-03
------------------------------------------------------------------------------------------------------------------------------------
                                                                    Non-
                                                                    traditional
M0000548400    2002   CATASTROPHE XOL                      0340     B-1              CNAlInt'l Re, London     01-Jan-02    31-Dec-02
------------------------------------------------------------------------------------------------------------------------------------
                                                                    Non-
                                                                    traditional
00004043200    2002   Property Cat Excess                  0340     B-1              CNAlReinsurance Comp     01-Mar-02    28-Feb-03
------------------------------------------------------------------------------------------------------------------------------------
                                                                    Non-
                                                                    traditional
00003008100    2002   Retro Cat Excess                     0340     B-1              Hyland 2121              01-Jan-02    31-Dec-02
------------------------------------------------------------------------------------------------------------------------------------
                                                                    Non-
                                                                    traditional
M0000548800    2002   STOP LOSS REINSURANCE                0340     B-1              Irish European Re        01-Jan-02    31-Dec-02
------------------------------------------------------------------------------------------------------------------------------------
                                                                    Non-
                                                                    traditional
00000156300    2002   Non-Marine Funded Excess             0340     B-1              Limit                    01-Jan-02    31-Dec-02
------------------------------------------------------------------------------------------------------------------------------------
                                                                    Non-
                                                                    traditional
00001505500    2002   Non-Marine Funded Excess             0340     B-1              Limit                    01-Jan-02    31-Dec-02
------------------------------------------------------------------------------------------------------------------------------------

                                    A-1-1

<Page>

------------------------------------------------------------------------------------------------------------------------------------
                                                                    Non-
                                                                    traditional
00002408100    2002   Non-Marine Catastrophe Excess        0340     B-1              Limit                    01-Jan-02    31-Dec-02
------------------------------------------------------------------------------------------------------------------------------------
                                                                    Non-
                                                                    traditional
00003709500    2002   Non-Marine Funded 3rd Event          0340     B-1              Limit                    01-Jan-02    31-Dec-02
------------------------------------------------------------------------------------------------------------------------------------
                                                                    Non-
                                                                    traditional
M0000541600    2002   Marine Account Catastrophe           0340     B-1              Upton                    01-Jan-02    31-Dec-02
------------------------------------------------------------------------------------------------------------------------------------
                                                                    Non-
                                                                    traditional
00002528900    2002   Catastrophe Excess Program 1.L       0340     B-1              X.aL. Mid Ocean Re       01-May-02    30-Apr-03
------------------------------------------------------------------------------------------------------------------------------------
                                                                    Non-
                                                                    traditional
00002530400    2002   Catastrophe Excess Program 2.L       0340     B-1              X.aL. Mid Ocean Re       01-May-02    30-Apr-03
------------------------------------------------------------------------------------------------------------------------------------
                                                                    Non-
                                                                    traditional
00003095000    2002   Ren Re Cat Layer 2                   0340     B-1              Underwriters Re, Bar     01-Jan-02    31-Dec-02
------------------------------------------------------------------------------------------------------------------------------------
                                                                    Non-
                                                                    traditional
00003301700    2002   QS                                   0340     B-1              Underwriters Re, Bar     01-Jan-02    31-Dec-02
------------------------------------------------------------------------------------------------------------------------------------
                                                                    Non-
                                                                    traditional
00002993400    2002   AGGREGATE STOP LOSS                  0345     B-1              W.aR. Berkley Group      01-Jan-02    31-Dec-02
------------------------------------------------------------------------------------------------------------------------------------
                                                                    Non-
                                                       St Paul Re   traditional
3102           2001                                       Co, Ltd   B-1              TRClRisk Excess Layer 2  01-Apr-02    31-Mar-03
------------------------------------------------------------------------------------------------------------------------------------
                                                                    Non-
                                                       St Paul Re   traditional
3103           2001                                       Co, Ltd   B-1              TRClRisk Excess Layer 2  01-Apr-02    01-Apr-03
------------------------------------------------------------------------------------------------------------------------------------

</Table>

                                       A-1-2

<Page>

                                   EXHIBIT A-2

                       LOSS RESERVES BY CLASS OF BUSINESS

                               As of June 30, 2002

<Table>
<Caption>
                                                                              Deposit            Profit
                                                                IBNR        Liabilities       Commissions
                                                              ---------    -------------     -------------
<S>                                                           <C>          <C>               <C>

New York & Vermont               Non-Traditional B1           1,872,000                           232,000

</Table>

                                       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 A-2.

             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
June 30, 2002 is equal to $[ ]

                                       B-1-1

<Page>

                                    EXHIBIT C

                              INURING RETROCESSIONS

                                       C-1

<Page>

FER 17/10/02

Platinum Re _Inuring Reinsurance 17_10_02.xls

<Table>
<Caption>

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

            AS AT 17/10/02

Reference                             Inception    Expiration
   No.     Name of Contract             Date          Date                 Cover                       Limit
------------------------------------------------------------------------------------------------------------------------
<S>        <C>                        <C>          <C>         <C>                          <C>
    1)     Worldwide Property          1/1/02       12/31/02   International Property Risk  USD 40,000,000 Aggregate
           Excluding Japan                                     Excess of Loss & Catastrophe Cession Limit
                                                               Excess of Loss Business
                                                               (protects Europe)

    2)     UK/Eire Cat. XL Q.S. /      1/1/02       12/31/02   U.K. / Eire Cat. Excess      GBP 100,000,000 Aggregate
           1st & / 2nd Surplus                                 of Loss Treaty Business      Cession Limit
                                                               (protects Europe)

    3)     UK/Europe Cat. XL Quota     1/1/02       12/31/02   International Property       GBP 75,000,000 Aggregate
           Share Treaty                                        Catastrophe Excess of Loss   Cession Limit
                                                               Business (protects Europe)

    4)     Japan Cat. XL Surplus       1/1/02       12/31/02   Japan / Japanese Islands     USD 30,000,000 Aggregate
           Treaty                                              Property Cat. Excess of Loss Cession Limit : quake USD
                                                               Business (protects New York  20,000,000 Aggregate
                                                               & Europe)                    Cession Limit : windstorm

<Caption>

    Projected Prem.       Participants      % Placed
----------------------------------------------------
<C>                    <C>                  <C>
USD 9m - USD 12m [100% Nisshin - 50%            55%
treaty estimate]       Nichido -   5%

GBP 5m [100% treaty    Nisshin - 14%            29%
estimate]              PX Re  - 10%
                       TOA Re  - 5%

GBP 3m - GBP 3.5m      Montpelier Re -        100%
                       100%

USD 1.2m               PX Re - 100%           100%

                                       C-2

<Page>

<Caption>

<S>        <C>                        <C>          <C>         <C>                          <C>
    5)     Casualty Clash Quota        1/1/96       12/31/02   Casualty Clash, Casualty     20% Quota Share of
           Share                                               Contingency, Casualty Cat.   USD 7,500,000 any
                                                               and Workers Comp. Cat. (NY)  one occurrence etc.

    6)     Nisshin NM Open Cover       7/1/01       6/30/02    Business in the Pacific Rim  SGD 2,000,000
                                                               Region from our NY,
                                                               Singapore & HK offices

    7)     North America Property      4/1/02       12/1/02    North America Property       50% Quota Share
           Cat. Quota Share                                    Catastrophe business written
                                                               by NY & Chicago

<Caption>

<C>                    <C>                  <C>
$4,200,000             Auto-Owners            100%
                       Ins. Co.

$500,000               Nisshin F & M          100%

estimated $12,500,000  Montpelier Re          100%

</Table>

                                       C-3

<Page>

FER 17/10/02

Platinum Re _Inuring Reinsurance 17_10_02.xls

<Table>
<Caption>

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

           AS AT 17/10/02

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

   1b)    Marine XL (b)      1/1/02     12/31/02   Protects Europe    $5,000,000      $5,000,000       2 @ 100%
                                                   XL account   (pound)2,500,000(pound)2,500,000

   1c)    Marine XL (c)      1/1/02     12/31/02   Protects Europe    $5,000,000     $10,000,000       2 @ 100%
                                                   XL account   (pound)2,500,000(pound)5,000,000

   2a)    International     7/11/01      7/10/02   Protects Europe    $7,500,000      $7,500,000       1 @ 100%
          Property Cat. XL                         Risk/Prorata/Cat.(pound)5,000,000(pound)5,000,000
                                                   XL business

<Caption>

   Projected
     Premium    ROL      % Placed              Participants
-------------------------------------------------------------------
<C>             <C>      <C>        <C>
     $360,000   26.67%      100%    PX Re - 44.20%
(pound)20,000                       Lloyd's Synd. 2121 (HYL) - 10%
                                    Cornhill Ins. - 33.33%
                                    XL Re - 12.47%

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

     $675,000   15.00%      100%    QBE Intnl. London - 50%
(pound)37,500                       Cornhill - 25%
                                    Odyssey London Branch - 25%

     $843,750   22.50%      100%    PX Re - 40%
   (pound)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%

                                       C-4

<Page>

<Caption>

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

   2b)    International     7/11/01      7/10/02   Protects Europe    $7,500,000     $15,000,000       1 @ 100%
          Property Cat. XL                         Risk/Prorata/Cat.(pound)5,000,000(pound)10,000,000
                                                   XL business

   2c)    International     7/11/01      7/10/02   Protects Europe    $7,500,000     $22,500,000       1 @ 100%
          Property Cat. XL                         Risk/Prorata/Cat.(pound)5,000,000(pound)15,000,000
                                                   XL business

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

   3b)    Joint Risk XOL    2/13/02      2/12/03   Property Risk &    $5,000,000      $5,000,000       1 @ 100%
          Cover - Second                           Prorata
          Layer                                    business
                                                   (all offices)

<Caption>

<C>             <C>      <C>        <C>
   $1,162,500   31.00%      100%    PX Re - 15.66%
    (pound)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%

     $900,000   24.00%      100%    PX Re - 12% [14.93% w.e.f. 1/11/02]
    (pound)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%

     $875,000   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%
                                    PX Re - 10%

   $2,000,000   40.00%      100%    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%

                                       C-5

<Page>

<Caption>

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

   4a)    International      3/9/02      2/8/03    International     $20,000,000     $50,000,000       1 @ 100%
          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       1 @ 100%
          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          0
          [Geosynchronous /                        offices.  3
          Geostationary                            satellite
          In-Orbit                                 warranty.
          Reinsurance]                             Covers
                                                   naturally
                                                   occurring
                                                   phenomena in
                                                   space.

   6)     Latin America &    7/1/00      6/3/06    All loss          $25,000,000     $15,000,000       margin -
          Caribbean ILW XOL                        recoveries on   Term Aggregate                      $400,000
                                                   Latin America   Limit - USD 75M
                                                   and Caribbean
                                                   business
                                                   subject to USD
                                                   1 Billion ILW

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

<Caption>

<C>             <C>      <C>        <C>

   $4,800,000   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 Re - 10%
                                    Royal Bank of Canada - 4%

   $4,500,000   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%
                                    Royal Bank of Canada - 2.667%
                                    Protective - 2.667%

     $575,000   5.75%       100%    Renaissance Re - 100%

                 N/A       56.50%   Fuji F & M - 5%
                                    Nisshin F & M - 13.5%
                                    Sumitomo - 10%
                                    Taisei F & M - 8%
                                    Toa Re - 20%

   $3,450,000   23.00%      100%    Continental Casualty - 100%

                                       C-6

<Page>

<Caption>

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

   8)     N.A. $10 Billion   7/1/01      6/30/02   North American     $2,500,000         $10,000       1 @ 100%
          ILW                                      Property
                                                   business
                                                   subject to
                                                   Industry Loss
                                                   of USD 10B

   9)     N.A. $10 Billion   8/1/01      7/31/02   North American     $2,500,000      $1,000,000       1 @ 100%
          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       1 @ 100%
          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       1 @ 100%
          $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       1 @ 100%
          layer [NY]                               for New York
                                                   Office

  12b)    Marine XOL - 2nd   1/1/02     12/31/02   Marine business    $5,000,000     $10,000,000       1 @ 100%
          layer [NY]                               for New York
                                                   Office

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

<Caption>

<C>             <C>      <C>        <C>

     $500,000   20.00%      100%    Transatlantic Re - 100%

     $475,000   19.00%      100%    IPC Re Limited - 100%

     $420,000   4.20%       100%    Tokio Millenium Re - 100%
     $950,000   19.00%      100%    Odyssey Re - 100%

   $1,125,052   22.50%      100%    Lloyd's Synd. 457 (WTK) - 7.5%
                                    Cornhill - 21.5%
                                    Folksamerica Re - 30%
                                    Lloyd's Synd. 2 (WHS) - 20%
                                    Nisshin F & M - 1%
                                    XL Mid Ocean Re - 20%

     $624,982   12.50%      100%    Lloyd's Synd. 457 (WTK)  - 7.5%
                                    Cornhill - 21.5%
                                    Folksamerica Re - 30%
                                    Lloyd's Synd. 2 (WHS) - 20%
                                    Nisshin F & M - 1%
                                    XL Mid Ocean Re - 20%

   $4,750,000               100%    Underwriters Reinsurance - 53.75%
                                    London Life & General - 25%
                                    PMA Reins. - 10%
                                    Hannover Re - 9%
                                    E & S Reins. - 2.25%

                                       C-7

<Page>

<Caption>

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

   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  Annual Agg. Of 50M
          XOL (Holborn)                            treaty business

   15)    Puerto Rico ILW   7/26/02      7/25/03   Property          $10,000,000         $10,000         Nil
          XOL                                      business
                                                   subject to an
                                                   Industry Loss
                                                   of USD1.5
                                                   Billion

<Caption>

<C>             <C>      <C>        <C>

  $10,000,000               100%    Swiss Re - 81.25%
                                    Hannover - 15%
                                    E & S Reins. - 3.75%

   $1,250,000   12.50%      100%    ACE Tempest Re - 50%
                                    Renaissance Re - 50%

</Table>

                                       C-8

<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 realized 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 realized 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
unfavorable experience on the Whole Account Stop Loss Cover the premium on this
cover could reduce by as much as $9

                                       E-1

<Page>

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

                                       H-1<PAGE>

                                                                   Exhibit 10.21

================================================================================
                     100% QUOTA SHARE RETROCESSION AGREEMENT
                             (Non-TRADITIONAL - B-2)

                                 BY AND BETWEEN

                   ST. PAUL FIRE AND MARINE INSURANCE COMPANY

                                  (RETROCEDANT)

                                       and

                     PLATINUM UNDERWRITERS REINSURANCE, INC.

                               (RETROCESSIONAIRE)

                            DATED AS OF________, 2002

         This QUOTA SHARE RETROCESSION Agreement (this "AGREEMENT"), effective
as of 12:01 a.m. New York time on the 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 Fire and Marine Insurance Company, a Minnesota
domiciled insurance company ("RETROCEDANT"), and Platinum Underwriters
Reinsurance, Inc. (formerly known as USF&G Family Insurance Company), a Maryland
domiciled stock insurance company ("RETROCESSIONAIRE").

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

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

         WHEREAS, Retrocedant has agreed to retrocede to Retrocessionaire, and
Retrocessionaire has agreed to assume by indemnity reinsurance, as of the
Effective

<PAGE>

Time, a one hundred percent (100%) quota share of the liabilities arising
pursuant to the Reinsurance Contracts (as defined hereunder), subject to the
terms set forth herein.

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

                                   ARTICLE I

                          BUSINESS COVERED; EXCLUSIONS

         Retrocedant hereby obligates itself to retrocede to Retrocessionaire
and Retrocessionaire hereby obligates itself to accept, pursuant to the terms of
this Agreement, a one hundred percent (100%) quota share of any and all
liabilities incurred by Retrocedant on or after January 1, 2002 but not yet paid
as of the Effective Time, net of Inuring Retrocessions (as defined in Section
7.01 herein), under all reinsurance and retrocession contracts (each, a
"REINSURANCE CONTRACT") that

         (i)      are underwritten by St. Paul Re on behalf of Retrocedant,
                  incept on or after January 1, 2002 and belong to the classes
                  specified in Exhibit A-1 hereto (solely for the convenience of
                  the parties, Exhibit A-2 sets forth Loss Reserves (as defined
                  in Exhibit B hereto), over all such Reinsurance Contracts, by
                  Class of Business (as defined below), each as of June 30,
                  2002, or

         (ii)     are new or renewal contracts entered into by Retrocedant
                  pursuant to Article III, paragraph (a) of the Underwriting
                  Management Agreement between Retrocedant and Retrocessionaire
                  of even date herewith.

         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. All liabilities for ceding commissions are
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 (the "FLOOD LIABILITIES").

         With respect to any named storm(s) (which are any tropical cyclones
assigned a name by the National Hurricane Center) 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

                                       2
<PAGE>

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 any subsidiary of The St. Paul, as cedant, and a
subsidiary of Platinum Holdings as retrocessionaire.

         The Flood 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.

                                   ARTICLE II

                                      TERM

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

                                  ARTICLE III

                                    COVERAGE

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

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

         SECTION 3.03 COVERAGE LIMITS. Coverage under this Agreement for a
specific Reinsurance Contract shall be subject to the aggregate limit specified
in the

                                       3
<PAGE>

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.

                                   ARTICLE IV

                      PREMIUMS AND ADDITIONAL CONSIDERATION

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

         (a) On the Effective Date, in respect of the Section A (Retrospective)
Coverage Period, Retrocedant shall pay to the account of Retrocessionaire an
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
December 31, 2001 as filed with the Minnesota Department of Commerce (consistent
with the methods, principles, practices and policies applied at June 30, 2002)
and as submitted to 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 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 4.01 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 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

                                       4
<PAGE>

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 should
have been included in the Final Section A Premium, as determined pursuant to
paragraph (b) of this Section 4.01, less any amounts paid by Retrocedant on or
after the Effective Date pursuant to such Reinsurance Contract relating to such
reserves, plus interest on such amount at the Applicable Rate calculated from
and including the Effective Date to and including the date of such payment to
Retrocessionaire.

         (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 _____, 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 4.01(d), shall be

                                       5
<PAGE>

for the account of Retrocessionaire and no such amounts shall be retained by or
payable to Retrocedant.

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

         (a) On the Effective Date, in respect of the Section B (Prospective)
Coverage Period, Retrocedant shall transfer to Retrocessionaire an 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 net of Inuring Retrocession premiums as provided for in Section
7.04 and as allocated pursuant to Exhibit E. 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,
principles, practices and policies employed in the preparation and presentation
of Retrocedant's annual statutory financial statement as of December 31, 2001 as
filed with the Minnesota Department of Commerce (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 December 31, 2001 as filed with the Minnesota Department of
Commerce (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 7.04 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

                                       6
<PAGE>

any applicable Retrocedant Ceding Commission and Inuring Retrocession premiums
as provided for in Section 7.04 and as allocated pursuant to Exhibit E.

         (d) Retrocedant shall retain all gross premiums 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.

         SECTION 4.03 DISPUTE RESOLUTION.

         (a) After receipt of the Proposed Accounting, together with the work
papers used in preparation thereof, Retrocessionaire shall have 30 days (the
"REVIEW PERIOD") to review such Proposed Accounting. Unless Retrocessionaire
delivers written notice to Retrocedant on or prior to the 30th day of the Review
Period stating that it has material objections 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. If Retrocessionaire so notifies Retrocedant of any material
objection(s) to the Proposed Accounting, the parties shall in good faith attempt
to resolve, within 30 days (or such longer period as the parties may agree)
following such notice (the "RESOLUTION Period"), their differences with respect
to such material objections 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 B, 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 [daily] 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 4.03(b), it being understood that arbitration according to
Section 4.03(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 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 4.03(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)

                                       7
<PAGE>

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 American Arbitration
Association. All Arbiters and Umpires shall be active or retired disinterested
property/casualty actuaries of insurance or reinsurance companies or Lloyd's of
London Underwriters.

         (c) Each party shall present its case to the Arbiters within 30 days
following the date of appointment of the Umpire, unless the parties mutually
agree to an extension of time. Subject to the provisions of paragraph (f) of
this Section 4.03, the decision of the Arbiters shall be final and binding on
both parties; but failing to agree, they shall call in the Umpire and the
decision of the majority shall be final and binding upon both parties. Judgment
upon the final decision of the Arbiters may be entered in any court of competent
jurisdiction.

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

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

         (f) 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 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 4.03(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 4.03(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.

                                       8
<PAGE>

         (g) It is understood that the dispute resolution provisions set forth
in this Section 4.03 represent the exclusive remedy for disputes arising between
the parties with respect to the Proposed Accounting and that the dispute
mechanisms set forth in Article XV shall be the exclusive remedy for all
disputes not relating to the Proposed Accounting.

         SECTION 4.04 PREMIUM ADJUSTMENTS.

         (a) As of the earlier of the first anniversary of the inception of any
Reinsurance Contract following the date hereon and the expiration date or final
settlement date of any Reinsurance Contract, Retrocedant shall pay to the
account of Retrocessionaire an adjustment premium equal to the product of

         (i) one hundred percent (100%) of the Scheduled Premium Accruals,

multiplied by

         (ii) the greater of (A) zero and (B) one minus the ratio of the
Ultimate Incurred Loss for 2001 to the 2001 Loss Estimate ("ESTIMATED PREMIUM
ADJUSTMENT").

         (b) As of each following anniversary of the inception of the
Reinsurance Contract and on the expiration date or final settlement date of the
Reinsurance Contract, Retrocessionaire shall determine the difference between
the Estimated Premium Adjustment as of such date and the Estimated Premium
Adjustment as of the prior payment date. Retrocedant shall promptly pay to the
account of Retrocessionaire any such amount if positive, and Retrocessionaire
shall promptly pay to the account of Retrocedant any such amount if negative.

         (c) The "SCHEDULED PREMIUM ACCRUALS" shall mean all premium increases
scheduled and accrued as of December 31, 2001 as determined pursuant to the
terms of the underlying respective Reinsurance Contracts that are not a direct
result of a loss occurring prior to January 1, 2002 arising from the ceding
companies electing to continue coverage for a period commencing after December
31, 2001 under their respective Reinsurance Contracts. The respective Scheduled
Premium Accruals are set forth on Exhibit A hereto. Subject to the adjustments
pursuant to Section 4.04(a) above, all Scheduled Premium Accruals shall be
allocated to Retrocedant.

         The "ULTIMATE INCURRED LOSS FOR 2001" shall mean the estimate, or final
determination, as the case may be, of the ultimate loss under the Reinsurance
Contract as of the date of determination of an Estimated Premium Adjustment
pursuant to Section 4.04(a).

         The "2001 LOSS ESTIMATE" shall mean the ultimate incurred losses for
2001 under the Reinsurance Contract as estimated by Retrocessionaire as of
December 31, 2001, as set forth on Exhibit A hereto.

                                       9
<PAGE>

                                   ARTICLE V

                          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 Underwriting Management Agreement
between Retrocedant and Retrocessionaire, 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.

                                   ARTICLE VI

                               ORIGINAL CONDITIONS

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

                                  ARTICLE VII

                              INURING RETROCESSIONS

         SECTION 7.01 ALLOCATION TO RETROCESSIONAIRE. Retrocedant agrees that
the retrocession contracts purchased by 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 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.

         SECTION 7.02 TRANSFER. Retrocedant and Retrocessionaire shall use their
respective commercially reasonable efforts to obtain the consent of Third Party
Retrocessionaires under the Inuring Retrocessions to include Retrocessionaire as
an additional reinsured with respect to the Reinsurance Contracts or, in the
alternative, to make all payments directly to the Retrocessionaire, to the
extent allocable to the Reinsurance Contracts, in the manner set forth in
Exhibit D hereto, and to seek all

                                       10
<PAGE>

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.

         SECTION 7.03 INURING RETROCESSIONS CLAIMS.

         (a) Each of the parties agrees to transfer to the other party all
recoveries or any portion thereof that such party receives on or after the
Effective Time pursuant to the Inuring Retrocessions which are allocated to the
other party in the manner set forth in Exhibit 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.

         (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.

         SECTION 7.04 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 4.02,
Retrocessionaire shall reimburse Retrocedant for one hundred percent (100%) of
any and all unearned premiums paid by Retrocedant under such Inuring
Retrocessions net of any applicable unearned ceding commissions paid to
Retrocedant thereunder.

         SECTION 7.05 ADDITIONAL CONSIDERATION. Retrocessionaire agrees to pay
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.

                                       11
<PAGE>

         SECTION 7.06 TERMINATION OR 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, not to terminate or commute any such Inuring
Retrocession without the written consent of Retrocessionaire.

         (b) With respect to any Inuring Retrocessions providing coverage for
both Reinsurance 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.

                                  ARTICLE VIII

                 LOSS AND LOSS EXPENSE; SALVAGE aND SUBROGATION
                               FOLLOW THE FORTUNES

         SECTION 8.01 (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 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 10.01 in respect thereof. Retrocedant shall provide prompt
notice of any claim in excess of $500,000 to Retrocessionaire. All payments made
by Retrocedant, whether under strict contract terms or by way of compromise,
shall be binding on Retrocessionaire. In addition, if Retrocedant refuses to pay
a claim in full and a legal proceeding results, Retrocessionaire will be
unconditionally bound by any settlement agreed to by Retrocedant or the adverse
judgment of any court or arbitrator (which could include any judgment for bad
faith, punitive damages, excess policy limit losses or extra contractual
obligations) and Retrocedant may recover with respect to such settlements and
judgments under this Agreement. Though Retrocedant will settle such claims and
litigation in good faith, Retrocessionaire is bound to accept the settlements
paid by Retrocedant and such settlements may be for amounts that could be
greater than the amounts that would be agreed to by Retrocessionaire if
Retrocessionaire were to settle such claims or litigation

                                       12
<PAGE>

directly. It is the intent of this Agreement that Retrocessionaire shall in
every case in which this Agreement applies and in the proportions specified
herein, "follow the fortunes" of Retrocedant in respect of risks
Retrocessionaire has accepted under this Agreement.

                                   ARTICLE IX

                           EXTRA CONTRACTUAL OBLIGATIONS

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

                                   ARTICLE X

                     ADMINISTRATION OF REINSURANCE CONTRACTS

         SECTION 10.01 ADMINISTRATION.

         (a) The parties agree that, as of the Effective Time, Retrocedant shall
have the sole authority to administer the Reinsurance Contract 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
Contract, 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, defense and settlement of any claim upon prior written notice to
Retrocedant. Upon receipt of such notice, Retrocedant shall not compromise,
discharge or settle such claim except with the prior written consent of
Retrocessionaire. Retrocessionaire shall not take any action in the
administration of such claim that would reasonably be expected to adversely
affect Retrocedant, its business or its reputation, without the prior written
consent of Retrocedant. Subject to the terms of Article IX hereof,
Retrocessionaire shall indemnify Retrocedant for all Losses, including punitive,
exemplary, compensatory or

                                       13
<PAGE>

consequential damages arising from such assumption of the conduct of such
settlement pursuant to Article XIV herein.

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

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

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

                                   ARTICLE XI

                             REPORTS AND REMITTANCES

         SECTION 11.01 REPORT FROM RETROCEDANT. Within thirty days following the
end of each month, Retrocedant shall provide Retrocessionaire with a summary
statement of account for the previous month showing all activity relating to
each of the Reinsurance Contracts, including related administration costs and
expenses incurred by Retrocedant, consisting of categories of information set
forth in Exhibit G. The monthly statement of account shall also provide a
breakdown of any amounts due to the Retrocedant or Retrocessionaire, as the case
may be, as reimbursement for paid claims, collected premiums or other amounts
due pursuant to the terms of this Agreement, including amounts relating to
Inuring Retrocessions.

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

                                       14
<PAGE>

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

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

         SECTION 11.05 CURRENCY. For purposes of this Agreement, where
Retrocedant receives premiums or pays losses in currencies other than United
States dollars, such premiums or losses shall be converted into United States
dollars at the actual rates of exchange at which these premiums or losses are
entered in the Retrocedant's books.

                                  ARTICLE XII

                             MAINTENANCE OF LICENSES

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

                                  ARTICLE XIII

                                ACCESS TO RECORDS

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

                                       15
<PAGE>

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

                                  ARTICLE XIV

                                 INDEMNIFICATION

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

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

         SECTION 14.03 INDEMNIFICATION PROCEDURES. (a) If a party seeking
indemnification pursuant to this Article XIV (each, an "INDEMNITEE") receives
notice or otherwise learns of the assertion by a Person (including, without
limitation, any governmental entity) who is not a party to this Agreement or an
Affiliate thereof, of any claim or of the commencement by any such Person of any
Action (a "THIRD PARTY CLAIM") with respect to which the party from whom
indemnification is sought (each, an "INDEMNIFYING PARTY") may be obligated to
provide indemnification pursuant to this Section 14.01 or

                                       16
<PAGE>

14.02, such Indemnitee shall give such Indemnifying Party written notice thereof
promptly after becoming aware of such Third Party Claim; PROVIDED that the
failure of any Indemnitee to give notice as provided in this Section 14.03 shall
not relieve the Indemnifying Party of its obligations under this Article XIV,
except to the extent that such Indemnifying Party is prejudiced by such failure
to give notice. Such notice shall describe the Third Party Claim in as much
detail as is reasonably possible and, if ascertainable, shall indicate the
amount (estimated if necessary) of the Loss that has been or may be sustained by
such Indemnitee.

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

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

         (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

                                       17
<PAGE>

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

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

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

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

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

                                   ARTICLE XV

                                   ARBITRATION

         (a) As a condition precedent to any right of Action under this
Agreement, any dispute or difference between the parties hereto relating to the
formation, interpretation, or performance of this Agreement, or any transaction
under this Agreement, whether arising before or after termination, shall be
submitted for decision to a panel of three

                                       18
<PAGE>

arbitrators (the "PANEL") at the offices of Judicial Arbitration and Mediation
Services, Inc. in accordance with the Streamlined Arbitration Rules and
Procedures of Judicial Arbitration and Mediation Services, Inc.

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

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

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

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

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

         (g) The parties agree that any disputes subject to arbitration pursuant
to this Article XV that may also be subject to arbitration proceedings between
respective

                                       19
<PAGE>

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

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

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

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

                                  ARTICLE XVI

                                   INSOLVENCY

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

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

         (c) As to all reinsurance made, ceded, renewed or otherwise becoming
effective under this Agreement, the reinsurance shall be payable as set forth
above by Retrocessionaire to Retrocedant or to its liquidator, receiver,
conservator or statutory successor, except (1) where the Reinsurance Contracts
specifically provide another payee in the event of the insolvency of
Retrocedant, and (2) where Retrocessionaire, with the consent of the reinsured
or reinsureds under the Reinsurance Contracts, has assumed such Reinsurance
Contract obligations of Retrocedant as direct obligations of Retrocessionaire to
the payees under such Reinsurance Contracts and in substitution for the
obligations of the Retrocedant to such payees.

                                       20
<PAGE>

                                  ARTICLE XVII

                                     OFFSET

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

                                 ARTICLE XVIII

                              ERRORS AND OMISSIONS

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

                                  ARTICLE XIX

                        CREDIT FOR REINSURANCE; SECURITY

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

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

         SECTION 19.03 SECURITY. Retrocessionaire shall establish and maintain a
trust fund for the benefit of Retrocedant as security for the obligations of
Retrocessionaire under this Agreement. The trust fund shall be in a form
reasonably satisfactory to Retrocedant and shall comply in all material respects
with the requirements under Maryland Insurance Law applicable to trust funds
established for credit for reinsurance purposes except as explicitly set forth
therein.

                                       21
<PAGE>

                                   ARTICLE XX

                            MISCELLANEOUS PROVISIONS

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

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

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

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

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

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

                                       22
<PAGE>

         If to Retrocedant:

         St. Paul Fire and Marine Insurance Company
         385 Washington Street
         St. Paul, Minnesota 55102
         Facsimile:  [ NO.      ]
         Attention:  [TITLE]

         If to Retrocessionaire:

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

         SECTION 20.07 WIRE TRANSFER. All settlements in accordance with this
Agreement shall be made by wire transfer of immediately available funds on the
due date, or if such day is not a Business Day, on the next day which is a
Business Day, pursuant to the following wire transfer instructions:

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

         For credit to St. Paul Fire and Marine Insurance Company
         [  ]

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

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

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

         SECTION 20.10 AMENDMENTS; ENTIRE AGREEMENT. This Agreement may be
amended only by written agreement of the parties. This Agreement, together with
the Formation and Separation Agreement, supersedes all prior discussions and
written and

                                       23
<PAGE>

oral agreements and constitutes the sole and entire agreement between the
parties with respect to the subject matter hereof.

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

                                       24
<PAGE>

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

                                    ST. PAUL FIRE AND MARINE
                                    INSURANCE COMPANY

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

                                    PLATINUM UNDERWRITERS
                                    REINSURANCE, INC.

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

                                       25
<PAGE>

                                                    EXHIBIT A-1

                                               REINSURANCE CONTRACTS

<TABLE>
<CAPTION>

----------------------------------------------------------------------------------------------------------------------------------
                                                 RESERVE   CLASS                                       EFFECTIVE      EXPIRATION
CONTRACT         UY           USER TITLE          CLASS     NAME    NUMBER         CEDANT NAME            DATE           DATE
----------------------------------------------------------------------------------------------------------------------------------
<S>              <C>      <C>                     <C>      <C>      <C>        <C>                      <C>            <C>
00003006800      2002     Excess                  0340                         Rhine Ruck (Ch)          01-Jan-02      31-Dec-02
----------------------------------------------------------------------------------------------------------------------------------
00003136200      2002     MULTI YEAR CAT XOL      0340                         American Agricultural    01-Apr-02      31-Mar-03
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                                       A-1-1
<PAGE>

                                   EXHIBIT A-2

                       LOSS RESERVES BY CLASS OF BUSINESS

None

                                      A-2-1
<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 Contract net of estimated ceding commissions and
Inuring Retrocession premiums. Earned But Not Yet Billed Premium as of June 30,
2002 is equal to $[ ].

                                       B-1

<PAGE>

                                    EXHIBIT C

                              INURING RETROCESSIONS

                                       C-1
<PAGE>

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

       AS AT 17/10/02

<TABLE>
<CAPTION>
REFERENCE                          INCEPTION    EXPIRATION                                       PROJECTED
   NO.      NAME OF CONTRACT          DATE         DATE        COVER              LIMIT            PREM.     PARTICIPANTS   % PLACED
------------------------------------------------------------------------------------------------------------------------------------
<S>      <C>                       <C>          <C>         <C>                <C>               <C>         <C>             <C>
1)       Worldwide Property         1/1/02       12/31/02   International      USD 40,000,000    USD 9m -     Nisshin - 50%    55%
         Excluding Japan                                    Property Risk      Aggregate         USD 12m      Nichido -  5%
                                                            Excess of Loss     Cession Limit     [100%
                                                            & Catastrophe                        treaty
                                                            Excess of Loss                       estimate]
                                                            Business
                                                            (protects Europe)

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

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

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

</TABLE>

                                                          C-2
<PAGE>

<TABLE>
<S>      <C>                       <C>          <C>         <C>                <C>               <C>         <C>             <C>

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

6)       Nisshin NM Open Cover      7/1/01       6/30/02    Business in the     SGD 2,000,000    $500,000     Nisshin F&M    100%
                                                            Pacific Rim
                                                            Region from our
                                                            NY, Singapore &
                                                            HK offices

7)       North America Property     4/1/02       12/1/02    North America       50% Quota        estimated    Montpelier     100%
         Cat. Quota Share                                   Property            Share            $12,500,000  Re
                                                            Catastrophe
                                                            business written
                                                            by NY & Chicago

</TABLE>

                                                         C-3
<PAGE>

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     ROL
------------------------------------------------------------------------------------------------------------------------------------
<S>        <C>              <C>        <C>        <C>         <C>              <C>            <C>             <C>             <C>
    1a)    Marine XL (a)     5/1/01    4/30/02    Protects    $1,500,000      $1,000,000       1 @ 100%       $360,000        26.67%
                                                  Europe XL   (pound)750,000  (pound)500,000                  (pound)20,000
                                                  account

    1b)    Marine XL (b)     1/1/02   12/31/02   Protects     $5,000,000      $5,000,000       2 @ 100%       $1,125,000      25.00%
                                                 Europe XL    (pound)         (pound)                         (pound)62,500
                                                 account      2,500,000       2,500,000

    1c)    Marine XL (c)     1/1/02   12/31/02   Protects     $5,000,000      $10,000,000      2 @ 100%       $675,000        15.00%
                                                 Europe XL    (pound)         (pound)                         (pound)37,500
                                                 account      2,500,000       5,000,000

    2a)    International    7/11/01    7/10/02   Protects      $7,500,000     $7,500,000       1 @ 100%       $843,750        22.50%
           Property Cat.                         Europe Risk/  (pound)        (pound)                         (pound)562,500
           XL                                    Prorata/Cat.  5,000,000      5,000,000
                                                 XL business

<CAPTION>
REFERENCE
   NO.       %PLACED                  PARTICIPANTS
------------------------------------------------------------------
<S>         <C>              <C>

    1a)       100%          PX Re - 44.20%
                            Lloyd's Synd. 2121 (HYL) - 10%
                            Cornhill Ins. - 33.33%
                            XL Re - 12.47%

    1b)       100%          Lloyd's Synd. 1861 (BRM) - 20%
                            QBE Intnl. London - 30%
                            Cornhill - 25%
                            Odyssey London Branch - 25%

    1c)       100%          QBE Intnl. London - 50%
                            Cornhill - 25%
                            Odyssey London Branch - 25%

    2a)       100%          PX Re - 40%
                            GE Frankona Re (Germany) - 20%
                            Gerling Global (UK) - 1.91%
                            Safety National Casualty Corp. - 7.61%
                            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-4
<PAGE>

<TABLE>
<S>        <C>              <C>        <C>        <C>         <C>              <C>                <C>          <C>            <C>

  2b)    International      7/11/01   7/10/02    Protects     $7,500,000        $15,000,000        1 @ 100%    $1,162,500     31.00%
         Property Cat. XL                        Europe       (pound)5,000,000  (pound)10,000,000              (pound)775,000
                                                 Risk/
                                                 Prorata/Cat.
                                                 XL business

  2c)    International      7/11/01   7/10/02    Protects     $7,500,000        $22,500,000        1 @ 100%    $900,000       24.00%
         Property Cat. XL                        Europe       (pound)5,000,000  (pound)15,000,000              (pound)600,000
                                                 Risk/
                                                 Prorata/Cat.
                                                 XL business

  3a)    Joint Risk XOL     2/13/02   2/12/03    1st layer XS  $2,500,000       $2,500,000         1 @ 100%        $875,000   35.00%
         Cover - First                           5M aggregate
         Layer

  3b)    Joint Risk XOL     2/13/02   2/12/03   Property Risk  $5,000,000       $5,000,000         1 @ 100%      $2,000,000   40.00%
         Cover - Second                         & Prorata
         Layer                                  business
                                                (all offices)

<S>        <C>              <C>

  2b)      100%             PX Re - 15.66%
                            [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)      100%             PX Re - 12% [14.93% w.e.f. 1/11/02]
                            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)     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%
                            PX Re - 10%

  3b)     100%              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>

                                      C-5
<PAGE>

<TABLE>
<S>        <C>              <C>       <C>        <C>           <C>              <C>               <C>          <C>          <C>
  4a)     International     3/9/02    2/8/03     International  $20,000,000     $50,000,000       1 @ 100%     $4,800,000   24.00%
          Cat. XOL - First                       Risk/Prorata/
          Layer                                  Cat. XL
                                                 (all offices)

  4b)     International     3/9/02    2/8/03     International  $30,000,000     $70,000,000        1 @ 100%    $4,500,000   15.00%
          Cat. XOL -                             Risk/Prorata/
          Second Layer                           Cat. XL
                                                 (all offices)

   5)     Satellite XL      6/12/02   6/11/03    Protects all   $10,000,000     $10,000                  0       $575,000    5.75%
          [Geosynchronous/                       offices.  3
          Geostationary                          satellite
          In-Orbit                               warranty.
          Reinsurance]                           Covers
                                                 naturally
                                                 occurring
                                                 phenomena in
                                                 space.

   6)     Latin America &    7/1/00   6/3/06     All loss        $25,000,000    $15,000,000                    margin -       N/A
          Caribbean ILW                          recoveries on   Term Aggregate                                $400,000
          XOL                                    Latin America   Limit -
                                                 and Caribbean   USD 75M
                                                 business
                                                 subject to USD
                                                 1 Billion ILW

   7)     Caribbean ILW     11/1/01  10/31/02    Caribbean       $15,000,000    $100,000             Nil       $3,450,000   23.00%
          XOL                                    Property
                                                 business
                                                 subject to an
                                                 Industry Loss
                                                 of USD1.5
                                                 Billion

<S>        <C>              <C>
  4a)      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 Re - 10%
                            Royal Bank of Canada - 4%

  4b)      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%
                            Royal Bank of Canada - 2.667%
                            Protective - 2.667%

   5)      100%             Renaissance Re - 100%

   6)      56.50%           Fuji F & M - 5%
                            Nisshin F & M - 13.5%
                            Sumitomo - 10%
                            Taisei F & M - 8%
                            Toa Re - 20%

   7)      100%             Continental Casualty - 100%

</TABLE>

                                      C-6

<PAGE>

<TABLE>
<S>        <C>              <C>       <C>        <C>           <C>              <C>               <C>          <C>          <C>
    8)     N.A. $10         7/1/01    6/30/02   North American  $2,500,000      $10,000           1 @ 100%       $500,000  20.00%
           Billion ILW                          Property
                                                business
                                                subject to
                                                Industry Loss
                                                of USD 10B

    9)     N.A. $10         8/1/01    7/31/02   North American  $2,500,000      $1,000,000        1 @ 100%        $475,000  19.00%
           Billion ILW                          Property
                                                business
                                                subject to
                                                Industry Loss
                                                of USD 10B

    10)    N.A.             1/1/02    12/31/02  North American   $10,000,000    $100,000          1 @ 100%        $420,000   4.20%
           Property /                           Property and
           WCA Cat $ 30B                        Workers
           ILW                                  Compensation
                                                business
                                                subject to ILW
                                                of USD 30
                                                Billion

    11)    N.A. Property    1/5/02     1/5/03   North American   $5,000,000     $50,000           1 @ 100%        $950,000  19.00%
           Cat $15B ILW                         Property
                                                business
                                                subject to ILW
                                                of USD 15
                                                Billion

   12a)    Marine XOL -     1/1/02   12/31/02   Marine business  $5,000,000     $5,000,000        1 @ 100%      $1,125,052  22.50%
           1st layer [NY]                       for New York
                                                Office

   12b)    Marine XOL - 2nd  1/1/02  12/31/02   Marine business  $5,000,000     $10,000,000       1 @ 100%        $624,982  12.50%
           layer [NY]                           for New York
                                                Office

    13)    Single Period     1/1/02  12/31/02   Covers           $200,000,000   79.4%                           $4,750,000
           Accident Year                        aggregate net                   Traditional bus.
           Aggregate XOL                        losses incurred                 93.5% Non-
           (Holborn)                            on an ultimate                  traditional
                                                accident year                   business
                                                basis IRO all
                                                business
                                                written by All
                                                offices
                                                including
                                                Discovery Re.

<S>        <C>              <C>

     8)    100%             Transatlantic Re - 100%

     9)    100%             IPC Re Limited - 100%

    10)    100%             Tokio Millenium Re - 100%

    11)    100%             Odyssey Re - 100%

   12a)    100%             Lloyd's Synd. 457 (WTK) - 7.5%
                            Cornhill - 21.5%
                            Folksamerica Re - 30%
                            Lloyd's Synd. 2 (WHS) - 20%
                            Nisshin F & M - 1%
                            XL Mid Ocean Re - 20%

   12b)    100%             Lloyd's Synd. 457 (WTK)  - 7.5%
                            Cornhill - 21.5%
                            Folksamerica Re - 30%
                            Lloyd's Synd. 2 (WHS) - 20%
                            Nisshin F & M - 1%
                            XL Mid Ocean Re - 20%

    13)    100%             Underwriters Reinsurance - 53.75%
                            London Life & General - 25%
                            PMA Reins. - 10%
                            Hannover Re - 9%
                            E & S Reins. - 2.25%
</TABLE>

                                      C-7

<PAGE>

<TABLE>
<S>        <C>              <C>       <C>        <C>           <C>              <C>               <C>          <C>          <C>

   14)     Workers'         1/1/02   12/31/02    Covers        $50,000,000      $75,000,000                   $10,000,000
           Compensation     1/1/03   12/31/05    Workers'      $50,000,000      $75,000,000   Annual Agg.
           Cat. XOL                              Compensation                                 Of 50M
           (Holborn)                             treaty
                                                 business

   15)     Puerto Rico     7/26/02    7/25/03    Property      $10,000,000          $10,000       Nil          $1,250,000   12.50%
           ILW XOL                               business
                                                 subject to
                                                 an Industry
                                                 Loss of
                                                 USD1.5
                                                 Billion

<S>        <C>              <C>

   14)     100%             Swiss Re - 81.25%
                            Hannover - 15%
                            E & S Reins. - 3.75%

   15)     100%             ACE Tempest Re - 50%
                            Renaissance Re - 50%

</TABLE>

                                       C-8

<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 year's 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 realized 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 year's 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 realized 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
unfavorable experience on the Whole Account Stop Loss Cover the premium on this
cover could reduce by as much as $9

                                       E-1

<PAGE>

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

                                       H-1

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