Document:

<PAGE>
                                                                   Exhibit 10.60

                        ALLIANCE CAPITAL MANAGEMENT L.P.

                   Discretionary Investment Advisory Agreement

                                      With

                     Platinum Underwriters Reinsurance, Inc.

                             Dated November 4, 2002
                                (Effective Date)

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

      1. The Investment Account

            The Investment Account established for the Client refers to the
Trust Account defined in and subject to a certain Trust Agreement, by and among
the Client, St. Paul Fire and Marine Insurance Company ("St. Paul") and State
Street Bank and Trust Company, dated as of November 1, 2002, as amended,
modified or supplemented from time to time (the "Trust Agreement") and
established as a condition of the Retrocession Agreements (as defined in the
Trust Agreement). The Investment Account shall initially consist of cash, cash
equivalents, stocks, bonds and other securities placed in the Investment Account
by the Client or which shall become part of the Investment Account as a result
of transactions.

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

<PAGE>

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

      2. Services of Adviser

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

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

      3. Funding Policy

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

      4. Investment Objectives, Policies and Restrictions

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

      5. Delivery of Client Documentation

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

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<PAGE>

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

      6. Discretionary Authority

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

            It is understood that, to the extent permitted by Schedule A, the
Adviser or Alliance Capital Global Derivatives Corporation, an affiliate of the
Adviser, may also effect transactions for the Investment Account of the Client
in options and futures and other commodity contracts. In such event, the Client
will execute any additional documentation which the Adviser deems necessary to
enable it or its affiliate to engage in such transactions on behalf of its
Investment Account. The Client represents and warrants that it is familiar with
the requirements of the Commodity Exchange Act and the National Futures
Association pertaining to commodity pool operators and has determined that it is
in compliance with such requirements, to the extent applicable.

      7. Brokerage Transactions

            Fixed-income securities transactions for the Investment Account will
generally be effected in dealer markets where the Adviser will act as agent for
the Client in the purchase or sale of fixed-income securities at a net price
that includes a mark-up from the dealer. The Adviser will issue instructions to
such issuers, brokers and dealers for the placement of orders for the Investment
Account and instruct such dealers to forward to the Client copies of all
confirmations promptly after the execution of transactions for the Client's
Investment Account.

      8. Aggregation of Transactions

            The Client authorizes the Adviser in its discretion to aggregate
purchases and sales of securities for its Investment Account with purchases and
sales of securities of the same issuer for other clients of the Adviser
occurring on the same day. When transactions are so aggregated, the actual
prices applicable to the aggregated transactions will be averaged, and the
Investment Account and the accounts of other participating clients of the
Adviser will be deemed to have purchased or sold their proportionate share of
the securities involved at the average price so obtained.

      9. Transaction Procedures

            All transactions will be settled by payment to, or delivery by, the
applicable Custodian of all cash, securities or other assets due to or from the
Investment Account. The

                                       3
<PAGE>

Adviser may issue such instructions to a Custodian as may be appropriate in
connection with the settlement of transactions initiated by the Adviser.
Instructions of the Adviser to a Custodian shall be transmitted in writing or,
at the option of the Adviser, orally and confirmed in writing as soon as
practical thereafter. The Adviser will take reasonable measures to insure that
broker-dealers and issuers selected by the Adviser perform their obligations
with respect to the Investment Account.

      10. Fees

            The compensation of the Adviser for its services under this
Agreement shall be calculated and paid by the Client in respect of the
Investment Account established for it, in accordance with the Fee Schedule
attached hereto as Exhibit A, as the same may be amended from time to time by
mutual agreement between the Client and the Adviser. It is understood that, in
the event that such fees are to be billed to and paid by the Custodian for the
Investment Account, the Client will provide written authorization to the
Custodian to pay the fees of the Adviser directly from the Investment Account.
The Client shall be responsible solely for the fee due to the Adviser in respect
of the Investment Account established for such Client.

      11. Confidential Relationship

            All information provided by the Client or a Custodian to the Adviser
shall be held as confidential by the Adviser; provided, however, as is necessary
to carry out the purposes of this Agreement or as may be required by law, the
Adviser shall be permitted to disclose or communicate to a proper party any
information received from the Client or a Custodian or developed by the Adviser
under the terms of this Agreement. All recommendations, advice and other work
product of the Adviser developed under the terms of this Agreement and disclosed
to the Client or a Custodian shall be held as confidential, except as required
by law. Notwithstanding the foregoing, Client hereby authorizes the Adviser to
disclose through whatever means it deems appropriate (CHECK THE APPROPRIATE
BOXES BELOW):

      (a) Yes [X] No [ ] that the Client is an investment management client of
                         the Adviser;

      (b) Yes [X] No [ ] the type of assets that the Adviser is managing for the
                         Client from time to time (e.g., fixed-income assets);
                         and/or

      (c) Yes [X] No [ ] solely in the limited context of the Adviser's
                         responses to Request for Proposals ("RFPs"), the
                         Adviser is also authorized by the Client to disclose in
                         such RFPs, the value of the assets managed for the
                         Client by the Adviser from time to time.

If the Client does not check either "yes" or "no" to any of the requested
disclosure authorizations indicated in (a) through (c) above, the Client shall
be deemed to have no objection to the Adviser

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<PAGE>

disclosing the indicated information. The Client may revoke these authorizations
in respect of itself, at any time by written notice to the Adviser.

      12. Services to Other Clients

            It is understood that the Adviser performs investment advisory
services for various clients including investment companies. The Client agrees
that the Adviser may give advice and take action with respect to any of its
other clients which may differ from advice given, or the timing or nature of
action taken, with respect to the Investment Account established for it, so long
as it is the Adviser's policy, to the extent practical, to allocate investment
opportunities to the Investment Account over a period of time on a fair and
equitable basis relative to other clients.

            Nothing in this Agreement shall limit or restrict the Adviser or any
of its directors, officers, affiliates or employees from buying, selling or
trading in any securities or other assets for its or their own account or
accounts, and the Client acknowledges that the Adviser, its directors, officers,
affiliates and employees, and other clients of the Adviser, may at any time
have, acquire, increase, decrease or dispose of positions in investments which
are at the same time being acquired, held or disposed of for the Investment
Account.

            The Adviser will not have the obligation to initiate the purchase or
sale, or to recommend for purchase or sale, for the Investment Account any
security or other asset which the Adviser, its directors, officers, affiliates
or employees may purchase, hold or sell for its or their own accounts or for the
accounts of any other clients of the Adviser.

      13. Non-Public Information

            The Adviser will have no obligation to purchase or sell for the
Investment Account the securities of any issuer on the basis of any material
non-public information as may come into its possession.

      14. Representations by the Client

            The Client represents and warrants that the appointment of the
Adviser as discretionary investment adviser entitled to give entitlement orders
or other instructions and communications to the Custodian is authorized by the
governing documents (including, but not limited to the Retrocession Agreements,
the Trust Agreement and all documents related thereto) relating to the
Investment Account and that the terms of this Agreement do not violate any
provisions thereof or any obligation by which it is bound, whether arising by
contract, operation of law or otherwise. The Client represents and warrants that
(i) this Agreement has been duly authorized by appropriate action and when
executed and delivered will be binding upon it in accordance with its terms; and
(ii) it will deliver to the Adviser such evidence of such authority as the
Adviser may reasonably require, whether by way of a certified resolution or
otherwise.

      15. Representations by Adviser

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<PAGE>

            The Adviser represents that (i) it is registered as an investment
adviser under the Investment Advisers Act of 1940, as amended (the "Advisers
Act") and (ii) that it has all other regulatory authority and capacity to enter
into this Agreement and perform its duties hereunder.

      16. Indemnification

            The Adviser agrees to indemnify and hold the Client harmless from
any and all expenses, damages, costs and fees, including reasonable attorney's
fees, which may be incurred by reason of the Adviser's negligence, willful
misconduct, malfeasance, material breach of this Agreement or violation of
applicable law.

      17. Valuation

            In computing the market value of any security held in the Investment
Account, the Adviser shall value such security through independent, recognized
pricing services utilized by the Adviser for pricing securities held in its
advisory accounts generally. Any other security or asset shall be valued in a
manner determined in good faith by the Adviser to reflect its fair market value.

      18. Receipt of Disclosure Statement

            The Client acknowledges receipt of Part II of the Adviser's current
Form ADV in compliance with Rule 204-3(b) under the Advisers Act more than forty
eight (48) hours prior to the date of execution of this Agreement.

      19. Notices

            Unless otherwise specified herein, all notices, instructions and
advice with respect to security transactions or any other matters contemplated
by this Agreement shall be deemed duly given when received by the Client and the
Adviser, as applicable, at their addresses appearing below. In respect of the
Investment Account, the Adviser may rely upon any notice (written or oral) from
any person whom the Adviser reasonably believes to be an authorized
representative of the Client.

      20. Specimen Signatures

            The Adviser will forward from time to time to the Client and the
Custodian for the Investment Account, a list of names and specimen signatures of
persons authorized to act on behalf of the Adviser. The Client will forward to
the Adviser a list of names and specimen signatures of persons authorized to act
on behalf of the Client and shall cause the Custodian of its Investment Account
to forward a like list and specimen signatures to the Adviser.

      21. Invalid Provisions

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<PAGE>

            If any provision of this Agreement is held to be illegal, invalid or
unenforceable under present or future law, such provision shall be fully
severable, and this Agreement shall be construed and enforced as if such
illegal, invalid or unenforceable provision had never comprised a part of this
Agreement, and the remaining provisions of this Agreement shall remain in full
force and effect and shall not be affected by the illegal, invalid or
unenforceable provision or its severance from this Agreement.

      22. Termination; Assignment; Amendment

            This Agreement may be terminated at any time by the Client in
respect of its Investment Account by giving to the Adviser at least thirty (30)
days' prior written notice of such termination. This Agreement may be terminated
at any time by the Adviser in respect of the Investment Account by giving to the
Client at least thirty (30) days' prior written notice of such termination. Fees
paid in advance of the effectiveness of the termination will be prorated to the
date of termination specified in the notice of termination, and any unearned
portion thereof will be refunded to the Client. No assignment, as that term is
defined in the Advisers Act, shall be made by the Adviser without the written
consent of the Client. No assignment shall be deemed to result from changes in
the directors, officers or employees of the Adviser except as may be provided in
the Advisers Act. The Adviser agrees that it will notify the Client of any
change in the membership of the general partners of the Adviser within a
reasonable time after such change. This Agreement may be amended or modified at
any time by mutual agreement of the Client and the Adviser in writing.

      23. Counterparts

            This Agreement may be executed in two or more counterparts, each one
of which shall be deemed to be an original.

      24. Governing Law

            To the extent Federal law does not apply, this Agreement shall be
construed in accordance with and governed by the laws of the State of New York.

      25. Entire Agreement

            This Agreement constitutes the entire agreement of the parties with
respect to management of the Investment Account.

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<PAGE>

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

                              PLATINUM UNDERWRITERS REINSURANCE, INC.

                              BY:       /s/ Michael D. Price
                                        ----------------------------------------
                                        Name: Michael D. Price
                                        Title: President

                              ADDRESS:  195 Broadway
                                        28th Floor
                                        New York, NY 10007
                                        Attention: General Counsel

                              ALLIANCE CAPITAL MANAGEMENT L.P.

                              BY:       Alliance Capital Management
                                        Corporation, its General Partner

                              BY:       /s/ Louis T. Mangan
                                        ----------------------------------------
                                        Louis T. Mangan
                                        Assistant Secretary

                              ADDRESS:  1345 Avenue of the Americas
                                        New York, New York 10105
                                        Attn:  Holly Spencer
                                   cc:  Managing Director, Institutional Asset
                                        Management

                                       8
<PAGE>

                            New Account Documentation

                                       for

                     Platinum Underwriters Reinsurance, Inc.

The Adviser will require the documents identified below to establish its
investment management relationship with Platinum Underwriters Reinsurance, Inc.

1.    Fully executed advisory agreement (with fee schedule attached).

2.    Accurate list of securities to be transferred to new account unless
      initially consisting of cash or cash equivalents.

3.    Written statement of investment objectives, guidelines and restrictions,
      if any.

4.    Form W-9/W-8, as applicable.

5.    List of Authorized Signatories.

6.    Certified resolution of the Board of Directors or appropriate Committee
      authorizing appointment of the Adviser as investment adviser.

                                       9
<PAGE>

                                    EXHIBIT A

                        ALLIANCE CAPITAL MANAGEMENT L.P.

                  FIXED INCOME INSURANCE ASSET MANAGEMENT FEES
                                  PREPARED FOR

                     Platinum Underwriters Reinsurance, Inc.

FOR MINIMUM FIXED INCOME ACCOUNT SIZE OF $1 BILLION

<TABLE>
<CAPTION>
            Fee                             Assets
            ---                             ------
<S>                     <C>                 <C>
            0.19%       on the first        $100 million
            0.14%       on the next         $150 million
            0.11%       on the next         $250 million
            0.10%       on the balance
</TABLE>

FOR FIXED INCOME ASSETS LESS THAN $1 BILLION

<TABLE>
<CAPTION>
            Fee                             Assets
            ---                             ------
<S>                     <C>                 <C>
            0.20%       on the first        $100 million
            0.15%       on the next         $150 million
            0.12%       on the next         $250 million
            0.10%       on the balance
</TABLE>

<PAGE>

                                   SCHEDULE A

                              INVESTMENT GUIDELINES

<PAGE>

                              INVESTMENT GUIDELINES
                     PLATINUM UNDERWRITERS REINSURANCE, INC.

INVESTMENT OBJECTIVE:

The Fund's assets are managed to provide a high degree of investment income
subject to risk, guidelines, appropriate liquidity considerations, and tax
efficiency. Other objectives include to maintain or enhance the Platinum Group's
[Financial/Credit] rating and to generate a superior long-term total rate of
return versus a benchmark. The Fund's assets will be managed in accordance with
the investment provisions of Title 5 Subtitle 6 of the Maryland Insurance
Article, a summary of which is attached as Exhibit 1.

PORTFOLIO DURATION:

The targeted duration of the portfolio will be that of the liability stream,
which Platinum will provide as needed. If no liability stream is available, a
duration target of 3.5 years will apply. The portfolio could deviate as much as
+/- one year away from this target. There is no limitation placed on the
duration of individual securities.

PORTFOLIO CREDIT QUALITY:

The average quality of the managed fund should be no less than A/A2.

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------
ADDITIONAL SECURITY PARAMETERS:                                            DIVERSIFICATION
      For Investments permitted under the Maryland Insurance code              LIMITS
                         SECURITY:                            RATING:
-------------------------------------------------------------------------------------------
<S>                   <C>                                     <C>         <C>
I.    GOVERNMENT      Government securities issued by                      100% per issuer
                      United States                                       100% of portfolio
-------------------------------------------------------------------------------------------
II.   MONEY           Repurchase and reverse repurchase       A/P1 or       3% per issuer
      MARKETS         agreements                               better     100% of portfolio
                      ---------------------------------------------------------------------
                      Negotiable Certificates of Deposit      A-/A3 or      3% per issuer
                      and Time Deposits, and Demand Notes      better     100% of portfolio
                      ---------------------------------------------------------------------
                      Commercial paper, including finance     A1/P1 or      3% per issuer
                      company paper and asset-backed           better     100% of portfolio
                      commercial paper
-------------------------------------------------------------------------------------------
III.  MORTGAGE        Agency (FNMA, FHLMC or GNMA)            A/A2 or      10% per issuer
      BACKED          mortgage backed securities               better     30% of portfolio
      SECURITIES      (pass-throughs and CMOs)
      AND             ---------------------------------------------------------------------
      ASSET-          Asset-backed securities (an             A/A2 or       5% per issuer
      BACKED          asset-backed security issued by a        better     20% of portfolio
      SECURITIES      discreet master trust will be
                      thought of as an individual issuer)
                      - Public and 144a asset-backed
                      securities
                      ---------------------------------------------------------------------
                      Publicly issued private label           A/A2 or       5% per issuer
                      pass-throughs and CMOs (excluding        better     30% of portfolio
                      I/Os and P/Os)
-------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

<TABLE>
<S>                   <C>                                     <C>         <C>
-------------------------------------------------------------------------------------------
IV. COMMERCIAL        Commercial mortgage backed              A/A2 or       3% per issuer
    MORTGAGE          securities (including REITS)             better     10% of portfolio
    BACKED
    SECURITIES
-------------------------------------------------------------------------------------------
V. MUNICIPAL          Municipal securities, including         A-/A3 or      3% per issuer
   BONDS              "general obligation" and "revenue"       better     100% of portfolio
                      bonds (see "Other Qualifications"
                      below)
                                                            -------------------------------
                                                              Greater       3% per issuer
                                                                than      10% of portfolio
                                                            BBB-/Baa3,less
                                                             than A-/A3
-------------------------------------------------------------------------------------------
VI. CORPORATE         Notes, debentures, medium term notes    A-/A3 or      3% per issuer
    SECURITIES        or secured securities                    better     100% of portfolio
                                                            -------------------------------
                                                             less than      3% per issuer
                                                               A-/A3       20% of portfolio
                                                              greater
                                                                than
-------------------------------------------------------------------------------------------
VII. PREFERRED        Preferred Stocks including             BBB-/Baa3     2.5% per issuer
     STOCKS           Perpetual, Sinking Fund, Adjustable    BBB-/Baa3     10% of portfolio
                      Rate and Fixed Rate                    or better
-------------------------------------------------------------------------------------------
VIII. SOVEREIGN       Sovereign securities                   AA-/Aa3 or     3% per issuer
      AND                                                      better      10% of portfolio
      SUPRANATIONAL                                         -------------------------------
      SECURITIES                                             less than      3% per issuer
                                                               AA-/Aa3      5% of portfolio
                                                              greater
                                                                than
                                                             BBB-/Baa3
                      ---------------------------------------------------------------------
                      Supranational securities               AA-/Aa3 or     3% per issuer
                                                               better      5% of portfolio
-------------------------------------------------------------------------------------------
</TABLE>

CERTAIN QUANTITATIVE LIMITATIONS

-     The per issuer limitations are a function of the market value of the
      combined accounts (US).

-     Sovereign securities will not exceed 10% of admitted assets.

-     The maximum percentage for all securities rated below A-/A3 is 20% of the
      portfolio.

OTHER QUALIFICATIONS

-     Futures and options are permitted, provided the instrument is used as a
      hedge, with specific prior approval from Platinum.

      -     Swaps

      -     Futures

      -     Exchange traded options

      -     Over-the-counter options

-     Structured securities or securities with embedded options are permitted.
      Leverage is not permitted.

-     In the case of a split rating, the lower of the ratings available shall
      apply.

<PAGE>

-     Should a security be downgraded below investment grade (i.e. below
      BBB-/Baa3) the manager must notify and consult with Platinum as soon as
      reasonably practicable, regarding the optimal timing of the disposal.

-     For securities with variable principal repayment, the estimated duration
      should be used with respect to the duration restrictions.

-     All holdings must be denominated in the base currency of the relevant
      portfolio.

-     General obligation bonds are secured by the issuer's pledge of its full
      faith, credit and taxing power for the payment of principal and interest.
      Revenue or special tax bonds are payable only from the revenues derived
      from a particular facility or class of facilities but not from general tax
      revenues. Excluded will be revenue bonds where the revenues are derived
      solely from special or other excise taxes. Municipal bonds will be
      utilized when there is an after-tax benefit to the portfolio.

<PAGE>

                                                                       EXHIBIT 1

                             INVESTMENT GUIDELINES
                     PLATINUM UNDERWRITERS REINSURANCE, INC.

      The memorandum was prepared by Dewey Ballantine, LLP, counsel to Platinum
Underwriters Reinsurance, Inc., and provides a broad overview of the investment
limitations applicable to Maryland domiciled insurers and, as such, particular
investments may need to be reviewed against the requirement of the code.

      1. AUTHORIZATION OF INVESTMENTS

      The Board of Directors or a committee authorized by the Board of Directors
to supervise or make investments will approve the Investment Guidelines and
ratify all investments made pursuant to such Investment Guidelines.

      2. MINIMUM CAPITAL INVESTMENTS

      Before investing in other types of securities, the company will invest its
funds in an amount equal in value to the minimum capital and surplus
requirements. The permissible investments for such funds are limited to those
set forth in Section 5-607(b) of the Code and include (i) bonds or other debt of
the United States or an agency of the United States (if the obligation is
guaranteed by the United States); (ii) bonds or other debt that is the direct
obligation of Maryland or of a county, district or municipal corporation of
Maryland; (iii) bonds or other debt of another state; (iv) mortgage loans or
deeds of trust as specified in Section 5-608(j) and (k) of the Code on property
located in Maryland and (v) ground rents as specified in Section 5-608(m) of the
Code. At least 60% of the total amount of the required minimum investments must
consist of the types listed in (i) and (ii) above.

      3. RESERVE INVESTMENTS

      After satisfying the minimum investment requirements, the company will
invest in cash or the classes of reserve investments set forth in Section 5-608
of the Code to bring its investments up to an amount not less than 50% of the
aggregate amount of its unearned premium and loss reserves. These investments
are referred to as reserve investments. Except for real property acquired under
Section 5-608(n) of the Code, a security or investment is not eligible as a
reserve investment unless (i) the security or investment is interest-bearing,
interest-accruing or divided or income-paying; (ii) the insurer is entitled to
the interest or income on the security or investment.

      The reserve investments of an insurer may include the following classes of
assets set forth in Section 5-608(d), (e), (f), (g), (h), (i), (j), (k), (l),
(m), (n), (q), (r) and (s) of the Code:

            Obligations of Certain Banks. Obligations issued or guaranteed by
the African Development Bank, Asian Development Bank, International Bank for
Reconstruction and Development or International Finance Corporation, however, an
insurer may not invest more than 5% of its total admitted assets in such
obligations.

            Government Securities. Bonds or other debt that are not in default,
are valid and legally authorized obligations, issued, assumed or guaranteed by
the United States, a state, or other specified municipalities, which are payable
from taxes levied on all taxable property or all taxable income within the
jurisdiction of the governmental unit or other special revenues pledged or
appropriated by law provided for the purpose of the payment obligations and are
not payable solely out of special assessments on properties benefited by local
improvements.

            Secured Fixed Interest Securities. Obligations that are not in
default, that are issued, assumed or guaranteed by a solvent institution created
or existing under the laws of the United States or a state and that (i) are
secured by adequate collateral security (as defined in Section
5-608(e)(2)(iv)(3)) and bear fixed interest and during each of any 3, including
either of the last 2, of the 5 fiscal years immediately preceding the date of
acquisition by the insurer, the net earnings available for fixed charges of the
issuing, assuming or guaranteeing institution must have been not less than 1.25
times the total of the institution's fixed charges for the year or (ii) at the
date of acquisition by the insurer, are adequately secured and have investment
qualities and characteristics in which speculative elements are not predominant.

            Unsecured Fixed Interest Securities. Obligations that are not in
default, that are issued, assumed or guaranteed by a solvent institution created
or existing under the laws of the United States or a state and that are
unsecured obligations that bear fixed interest for which the net earnings
available for fixed charges of the issuing, assuming or guaranteeing institution
(i) for a period of 5 fiscal years immediately preceding the date of acquisition
by the insurer, averaged each year not less than 1.5 times the
<PAGE>

institution's average annual fixed charges applicable to the period and (ii)
during the last year of the 5-year period, must have been not less than 1.5
times the institution's fixed charges for the year.

            Contingent Interest Obligations. Obligations that are not in
default, that are issued, assumed or guaranteed by a solvent institution created
or existing under the laws of the United States or a state and that are
adjustment, income or other contingent interest obligations for which the net
earnings available for fixed charges of the issuing, assuming or guaranteeing
institution for a period of 5 fiscal years immediately preceding the date of
acquisition by the insurer (i) averaged each year not less than 1.5 times the
sum of the institution's average annual fixed charges plus the institution's
average annual maximum contingent interest applicable to the period and (ii)
during each of the last 2 years of the 5-year period, must have been not less
than 1.5 times the sum of the institution's fixed charges plus maximum
contingent interest for the year.

            Preferred or Guaranteed Stock. Preferred or guaranteed stock of a
solvent institution, created or existing under the laws of the United States or
a state, if (i) all prior obligations, and prior preferred stock, if any, of the
institution at the date of acquisition by the insurer are eligible investments
under Section 5-608; (ii) for preferred stock (1) the net earnings of the
institution available for fixed charges for a period of 5 fiscal years
immediately preceding the acquisition by the insurer must have averaged each
year not less than 1.5 times the sum of any average annual fixed charges, any
average annual maximum contingent interest, and the average annual preferred
dividend requirement applicable to the period; and (2) during either of the last
2 years of the 5-year period, the net earnings must have been not less than 1.5
times the sum of the institution's fixed charges, contingent interest, and
preferred dividend requirement for the year; and (iii) for guaranteed stock, the
assuming or guaranteeing institution meets the requirements of 5-608 (e)(2)(iii)
(described above in the "Unsecured Fixed Interest Securities" paragraph)
construed to include as a fixed charge the amounts of guaranteed dividends or
the rental covering the guarantee of the dividends.

            Secured Obligations Issued by Trustees or Receivers. Certificates,
notes or other obligations, adequately secured, issued by trustees or receivers
of an institution created or existing under the laws of the United States or a
state, that, or the assets of which, are being administered under the direction
of a court. (See Section 5-608(g)).

            Equipment Trust Certificates. Equipment trust obligations or

            certificates that are adequately secured or other adequately secured
obligations that evidence (1) an interest in transportation equipment located
wholly or partly in the United States; and (2) a right to receive determined
parts of rental, purchase, or other fixed obligatory payments for the use of the
transportation equipment.

            Bills of Exchange. Bank and bankers' acceptance and other bills of
exchange of the kind and maturities made eligible by law for purchase in the
open market by federal reserve banks.

            Bonds Secured by Mortgage or Deed on US Property. Bonds or other
debt secured by first mortgages or deeds of trust on unencumbered fee-simple or
improved leasehold real property located in the United States and otherwise
meeting the requirements of Section 5-608(j). Except as otherwise provided in
Section 5-608, an insurer may not invest in or loan on the security of any one
property more than the greater of $25,000 or 2% of its total admitted assets.
The total investments of an insurer under this paragraph may not exceed 40% of
its total admitted assets.

            Purchase-Money Mortgages. Purchase-money mortgages or like
securities received by an insurer on the sale or exchange of real property
acquired under subsection 5-608(n).

            Bonds Secured by Mortgages Guaranteed by the US. Bonds, notes or
other debt secured by mortgages or deeds of trust that are guaranteed or insured
by an instrumentality of the United States under the National Housing Act,
Serviceman's Readjustment Act of 1944, or Bankhead-Jones Farm Tenant Act.

            Stock or Debentures of Housing Authority. Stock or debentures or
both of a housing authority organized under the housing law of Maryland, to the
extent and on the conditions that the Commissioner authorizes, if all of the
stock of the housing authority has been or will be issued to one or more
insurers.

            Investments in Savings and Loan Association. Shares or deposits in a
savings and loan association or building and loan association to the extent that
the investment or account is insured by the Federal Deposit Insurance
Corporation.

            Common Stock. Dividend-paying common stock of a corporation created
or existing under the laws of the United States, Canada, a state, or a province
of Canada. (See Section 5-608(s)).

      4. QUANTITATIVE LIMITATIONS ON RESERVE INVESTMENTS

      To the extent necessary to satisfy the reserve investment requirements,
the company will not have more than (i) 10% of its total admitted assets in
preferred stock under Section 5-608(f); (ii) 10% of its total admitted assets in
common stock under Section 5-608(s); or (iii) 5% of its total admitted assets in
the stock of one corporation. (See Section 5-608(s)(2)).

<PAGE>

      5. OTHER INVESTMENTS

      Once the minimum investment requirements of Section 5-607 of the Code are
satisfied, the company may invest the remainder of its funds in any of the
classes of investments eligible under Section 5-608 or which are not prohibited
by the Code. In addition to investments specifically set forth as reserve
investments, Section 5-608 includes the following permissible types of
investments:

            Canadian Securities. The company may invest in Canadian securities
and investments that are substantially of the same kinds, classes, and
investments grades as those eligible for investment under Sections 5-601 through
5-609 of the Code.

            Investment of Foreign Authorized Insurers. If the company is
authorized to do business in a foreign country or possession of the United
States or that has outstanding insurance or reinsurance contracts on risks
located in a foreign country or possession of the United States the company may
invest in or otherwise acquire securities and investments in the foreign country
or possession that are substantially of the kinds, classes and investment grades
as those eligible for investment under Sections 5-601 through 5-609 of the Code.
The aggregate amount of such investments and of the currency of the foreign
country or possession held by the company may not exceed 1.5 times the greater
of (i) the amount of the reserves of the insurer and other obligations under any
outstanding insurance contracts or reinsurance contracts in that country or
possession; and (ii) the amount that the company is required by law to invest in
that country or possession.

            Investments Not Otherwise Prohibited. The investments of the company
may include any other investments not otherwise prohibited if (i) the aggregate
amount of the investments does not exceed 4% of the amount of admitted assets of
the insurer at the end of the previous year; (ii) the investment does not
violate any limitations on allowed investments and (iii) the investments comply
with the limitation established in Exhibit I, "Additional Limitations."

      6. PROHIBITED INVESTMENTS

                  In addition to other excluded investments, the following are
prohibited investments: (1) obligations, stock, or other securities of insolvent
corporations (unless specifically permitted); (2) a mortgage or deed of trust,
or real property or an interest in real property other than as specified in
Sections 5-608(j), (k), (l) and (m); (3) the capital stock of the company; (4)
stocks, bonds or other securities issued by a corporation, other than an
insurer, if a majority of the stock having voting powers of the issuing
corporation is owned directly or indirectly by or for the benefit of one or more
officers or directors of the insurer; or (5) an investment that the Commissioner
finds is against public policy or designed to evade a prohibition on investment.

      The company may not directly or indirectly invest in stocks, bonds or
other securities issued by a corporation, if a majority of the outstanding stock
of the corporation, or a majority of the stock having voting powers of the
corporation, is or will be after the acquisition directly or indirectly owned:
(i) by the company or by or through one or more of the company's officer's or
director's holding the stock for the benefit of the insurer or its stockholders;
(ii) by a parent corporation or subsidiary of the company, the parent
corporation or subsidiary of the parent corporation; or (iii) by any combination
of the company, its parent corporation, its subsidiaries or its stockholders.

      7. OTHER LIMITATIONS

      Securities of One Issuer. Except as otherwise specifically provided, the
company may not have more than 10% of its total admitted assets in the
securities of one person other than (i) governmental obligations eligible for
minimum capital investments or (ii) investments in the stock of other insurers.

      Foreign Investments. The company may invest in stocks, shares, bonds or
obligations of a person or governmental or business unit of or in a foreign
country or subdivision thereof, if the foreign investments conform substantially
with the limitations imposed by domestic investments. However, the aggregate
amount of foreign investments held under 5-605(c)(1) and under 5-608(o) and (p)
may not exceed the greater of (i) 10% of the company's total admitted assets;
(ii) 1.5 times the amount of the company's reserves and other obligations under
the insurance or reinsurance contracts in that country and (iii) the amount
necessary to transact business in the foreign country, directly or through a
subsidiary corporation.

      Subsidiaries. Generally, the company may not invest in a subsidiary an
amount which exceeds the lesser of 10% of the company's assets and 50% of the
domestic insurer's surplus as regards policyholders. In addition, after the
investment the company must have remaining surplus as regards policyholders that
bears a reasonable relation to the company's outstanding liabilities and is
adequate to meet the company's financial needs.

<PAGE>

      High Yield and High Risk Obligations. Without the prior approval of the
Commissioner, the company may not acquire a high yield / high risk obligation
if, after such acquisition, the aggregate cost of the acquisition plus the
admitted value of all other high yield / high risk obligations then held by the
company would exceed 20% of the company's admitted assets.<PAGE>

                                                                  EXHIBIT 10.61

                                                                  EXECUTION COPY

                               REVISED AND AMENDED
                                 TRUST AGREEMENT

                          Dated as of November 1, 2002

                       and amended as of December 12, 2002

                                      among

                    PLATINUM UNDERWRITERS REINSURANCE, INC.

                                 ("Platinum US")

                                   as Grantor,

                        MOUNTAIN RIDGE INSURANCE COMPANY

                               ("Mountain Ridge")

                                as Beneficiary,

                                       and

                       STATE STREET BANK AND TRUST COMPANY

                                   As Trustee

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
PARTIES                                                                                             PAGE
<S>               <C>                                                                               <C>
Section 1.        Creation and Deposit of Assets to the Trust Account..............................   2

Section 2.        Withdrawal of Assets from the Trust Account......................................   5

Section 3.        Application of Assets............................................................   6

Section 4.        Redemption, Investment and Substitution of Assets................................   8

Section 5.        The Income Account...............................................................   9

Section 6.        Right to Vote Assets.............................................................   9

Section 7.        Additional Rights and Duties of the Trustee......................................   9

Section 8.        The Trustee's Compensation, Expenses and Indemnification.........................  13

Section 9.        Resignation or Removal of the Trustee............................................  14

Section 10.       Termination of the Trust Account.................................................  15

Section 11.       Insolvency of Grantor............................................................  16

Section 12.       Definitions......................................................................  17

Section 13.       Governing Law....................................................................  18

Section 14.       Grantor's Tax Status.............................................................  19

Section 15.       Successors and Assigns...........................................................  19

Section 16.       Severability.....................................................................  19

Section 17.       Entire Agreement.................................................................  19

Section 18.       Amendments.......................................................................  20

Section 19.       Notices, etc.....................................................................  20

Section 20.       Headings.........................................................................  21

Section 21.       Counterparts.....................................................................  21
</TABLE>

EXHIBIT A        Form of 100% Quota Share Retrocession Agreement
EXHIBIT B        List of Assets Deposited to the Trust Account

                                      -ii-

<PAGE>

                       REVISED AND AMENDED TRUST AGREEMENT

                  REVISED AND AMENDED TRUST AGREEMENT, dated as of November 1,
2002 and amended as of December 12, 2002 (the "Agreement"), among PLATINUM
UNDERWRITERS REINSURANCE, INC. ("Platinum US"), a Maryland-domiciled insurance
company (the "Grantor"), MOUNTAIN RIDGE INSURANCE COMPANY ("Mountain Ridge"), a
Minnesota-domiciled insurance company (the "Beneficiary"), and STATE STREET BANK
AND TRUST COMPANY, a Massachusetts trust company (the "Trustee") (the Grantor,
the Beneficiary and the Trustee are hereinafter each sometimes referred to
individually as a "Party" and collectively as the "Parties").

                               W I T N E S S E T H

                  WHEREAS, the Grantor and the Beneficiary have entered into
three 100% Quota Share Retrocession Agreements, copies of which are attached as
Exhibit A hereto (the "Retrocession Agreements");

                  WHEREAS, the Beneficiary desires the Grantor to secure
payments of all amounts at any time and from time to time owing by the Grantor
to the Beneficiary under or in connection with the Retrocession Agreements;

                  WHEREAS, the Grantor desires to transfer to the Trustee for
deposit to a trust account (the "Trust Account") assets in order to secure
payments by the Grantor under or in connection with the Retrocession Agreements;

                  WHEREAS, the Trustee has agreed to act as trustee hereunder,
and to hold such assets in trust in the Trust Account for the sole use and
benefit of the Beneficiary; and

                                       -1-

<PAGE>

                  WHEREAS, this Agreement is established for the sole use and
benefit of the Beneficiary and for the purposes of setting forth the duties and
powers of the Trustee with respect to the Trust Account and the relative rights
and obligations of the Parties hereto;

                  NOW, THEREFORE, for consideration of the premises and for
other good and valuable consideration, the receipt of which is hereby
acknowledged, the Parties hereby agree as follows:

SECTION 1.        CREATION AND DEPOSIT OF ASSETS TO THE TRUST ACCOUNT.

                  (a)      The Grantor shall establish and maintain the Trust
Account for the benefit of the Beneficiary as security for the obligations of
the Grantor under the Retrocession Agreements. The Grantor shall ensure that the
Trust Account shall be in a form reasonably satisfactory to the Beneficiary and,
except as otherwise expressly provided herein, shall comply in all material
respects with the requirements under Maryland Insurance Law applicable to trust
funds established for credit for reinsurance purposes. The Trustee shall
administer the Trust Account in its name as Trustee for the Beneficiary. The
Trust Account shall be subject to withdrawal by the Beneficiary solely as
provided herein.

                  (b)      (i)     On the date hereof, the Grantor shall deposit
Qualifying Assets into the Trust Account equal to all payments and proceeds
received by the Grantor as Initial Section A Premium and Initial Section B
Premium (in each case as defined in the Retrocession Agreements) in respect of
all Reinsurance Contracts (as defined in the Retrocession Agreements). The list
of assets so deposited is set forth on Exhibit B hereto, as amended from time to
time. In addition, Grantor shall deposit Qualifying Assets into the Trust
Account equal to all payments received by Grantor under Sections 4.01(b) and
4.02(b) of the Retrocession Agreements, if any, following determination of the
Final Section A Premium and Final Section B

                                      -2-

<PAGE>

Premium or the Arbitrated Final Section A Premium and/or the Arbitrated Final
Section B Premium, as the case may be (each as defined in the Retrocession
Agreements). All assets received in the Trust Account are hereinafter referred
to as "Assets".

                  (ii)     As of the end of each calendar quarter, the Grantor
shall calculate the fair market value of the Assets held in the Trust Account as
of the last day of such quarter (such amount, the "Ending Asset Value") and the
aggregate loss, loss adjustment expense reserves, unearned premium reserves,
ceding commission and other reserves related to the Reinsurance Contracts as
reported in the statutory financial statements filed by the Grantor with the
Maryland Insurance Administration, as of the last day of such quarter (the
"Ending Reserves") and shall provide such calculation to the Beneficiary within
five days of the filing of such statutory financial statements with the Maryland
Insurance Administration. Calculation of the Ending Reserves shall exclude the
aggregate loss, loss adjustment expense reserves, unearned premium reserves,
ceding commission and other reserves related to any Reinsurance Contract
underwritten by the manager in accordance with the terms of Article III(a) of
the Underwriting Management Agreement between Beneficiary and Grantor, as
manager, dated as of the date hereof ("New Business").

                  (iii)    The Ending Reserves, calculated so as to exclude
reserves with respect to New Business, as provided in Section l(b)(ii) hereof,
shall be reduced by any increase in reserves during such calendar quarter due to
reserve strengthening or adverse development in the reserves recognized by the
Grantor in its statutory financial statements during such calendar quarter (as
so reduced, the "Adjusted Ending Reserves"). The excess of the Adjusted Ending
Reserves over the Ending Asset Value, if any, shall be the "Excess Reserves". To
the extent the Adjusted Ending Reserves exceed the Ending Asset Value, the
Grantor promptly shall deposit in

                                      -3-

<PAGE>

the Trust Account sufficient Qualifying Assets with a fair market value equal to
such excess. For the avoidance of doubt, it is understood that to the extent
such excess is due to adverse development with respect to the related reserves,
Grantor shall not be required to make any additional deposit of Qualifying
Assets into the Trust Account. To the extent the Ending Asset Value exceeds the
Adjusted Ending Reserves, the Grantor may withdraw Assets with a fair market
value equal to the amount of such excess.

                  (c)      Upon receipt of the quarterly calculation from the
Grantor, the Beneficiary shall have the right to reasonably object to such
calculation and to offer a reasonable proposal for the amount of the reserves
described in Section 1(b) hereof. If the parties in good faith are not able to
resolve the disagreement within two weeks of the Beneficiary's indication of
disagreement, the parties shall mutually agree upon an independent actuarial
firm to determine an appropriate level of aggregate reserves as described in
Section 1(b) hereof with respect to the Reinsurance Contracts, such level to be
no more than the amount proposed by the Beneficiary and no less than the amount
reported by the Grantor, and both parties agree to be bound by such
determination. The fees and expenses of the actuarial firm shall be shared
equally by the Grantor and the Beneficiary.

                  (d)      The Grantor shall retain the investment discretion
with respect to the Assets in the Trust Account, provided, however, that all
Assets held in the Trust Account shall be invested consistently with the
Investment Guidelines (the "Investment Guidelines") attached to the
Discretionary Investment Advisory Agreement dated as of November 4, 2002, by and
between Alliance Capital Management L.P. and the Grantor.

                                      -4-

<PAGE>

                  (e)      The Grantor shall be permitted to liquidate the trust
at the earlier of (i) such time as the Trustee receives notice from the Grantor
and the Beneficiary that the Grantor's obligations under all of the Retrocession
Agreements have been met or are terminated or waived or (ii) such time as the
Trustee receives notice from the Grantor that the Adjusted Ending Reserves so
reported by the Grantor do not exceed $10 million as of two successive calendar
year ends. In such event, the Trustee shall, within 10 days, transfer to the
Grantor any Assets remaining in the Trust Account.

                  (f)      The Beneficiary shall bear the costs and expenses of
the Trustee.

                  (g)      The Trustee shall have no responsibility to determine
(i) whether the Assets in the Trust Account are sufficient to secure the
Grantor's liabilities under the Retrocession Agreements, (ii) whether they
represent Qualifying Assets or (iii) whether any investment of Assets in the
Trust Account as directed by the Grantor complies with the Investment
Guidelines. Further, the Trustee shall have no responsibility whatsoever to
determine whether the Assets in the Trust Account entitle either the Grantor or
the Beneficiary to favorable or unfavorable tax accounting, or other treatment,
consideration, evaluation or calculation under any law, rule or regulation.

SECTION 2.        WITHDRAWAL OF ASSETS FROM THE TRUST ACCOUNT,

                  (a)      Without notice to the Grantor, the Beneficiary shall
have the right, at any time and from time to time, notwithstanding anything to
the contrary contained in the Retrocession Agreements, to withdraw from the
Trust Account, upon written notice to the Trustee (the "Withdrawal Notice"),
such Assets as are specified in such Withdrawal Notice. The Beneficiary need
present no statement or document in addition to a Withdrawal Notice in order

                                       -5-

<PAGE>

to withdraw any Assets; nor is said right of withdrawal or any other provision
of this Agreement subject to any conditions or qualifications not contained in
this Agreement.

                  (b)      Upon receipt of a Withdrawal Notice, the Trustee
shall promptly take the steps necessary to transfer absolutely all right, title
and interest in the Assets specified in such Withdrawal Notice and shall deliver
physical custody of such Assets to or for the account of the Beneficiary. In the
event that the Trustee must sell an investment in order to comply with the
Withdrawal Notice, the Trustee shall not be liable for any loss or penalty
associated with such investment, except to the extent such loss or penalty
arises from the Trustee's negligence, willful misconduct or lack of good faith,
or failure to comply with the Withdrawal Notice.

                  (c)      Subject to paragraph (a) of this Section 2 and to
Section 4 of this Agreement, in the absence of a Withdrawal Notice, the Trustee
shall allow no substitution or withdrawal of any Asset from the Trust Account.

                  (d)      The Trustee shall have no responsibility whatsoever
to determine that any Assets withdrawn from the Trust Account pursuant to this
Section 2 are withdrawn in compliance with the Retrocession Agreements, or will
be used and applied in the manner contemplated by Section 3 of this Agreement.

SECTION 3.        APPLICATION OF ASSETS.

                  (a)      The Beneficiary hereby covenants to the Grantor that
it shall use and apply any withdrawn Assets, without diminution because of the
insolvency of the Beneficiary or the Grantor, for the following purposes only:

                                       -6-

<PAGE>

                  (i)      to pay or reimburse the Beneficiary for the Grantor's
share under the Retrocession Agreements regarding any losses and allocated loss
expenses paid by the Beneficiary but not recovered from the Grantor, and
unearned premiums due to the Beneficiary if not otherwise paid by the Grantor,
or for other amounts due to the Beneficiary, if not otherwise paid by the
Grantor, in accordance with the terms of the Retrocession Agreements;

                  (ii)     to make payment to the Grantor of any amounts held in
the Trust Account that exceed 100% of the actual amount required to fund the
Grantor's entire Obligations (as hereinafter defined), and

                  (iii)    except in the event of a liquidation of the trust
under Section l(e) hereof, where the Beneficiary has received a Termination
Notice (as hereinafter defined) pursuant to Section 10 of this Agreement and
where all or a portion of the Grantor's Obligations remain unliquidated and
undischarged ten days prior to the Termination Date (as hereinafter defined), to
withdraw amounts equal to such Obligations and deposit such amounts in a
separate account, in the name of the Beneficiary, in any Qualified United States
Financial Institution (as defined herein), apart from its other assets, in trust
for the uses and purposes specified in subparagraphs (i) and (ii) of this
Section as may remain executory after such withdrawal and for any period after
such Termination Date. For the purposes of this subparagraph (iii), the phrase
"the Trust Account" in subparagraph (ii) of this Section shall be deemed to read
"the separate account" established pursuant to this subparagraph (iii),

                  (iv)     For purposes of this Section 3, all Assets shall be
valued at their current fair market value.

                                       -7-

<PAGE>

SECTION 4.        REDEMPTION, INVESTMENT AND SUBSTITUTION OF ASSETS.

                  (a)      The Trustee shall surrender for payment all maturing
Assets and all Assets called for redemption (and provide written notice to the
Beneficiary to that effect) and deposit the principal amount of the proceeds of
any such payment into the Trust Account.

                  (b)      From time to time, at the written order and direction
of the Grantor, any instruction or order concerning investments being referred
to herein as an "Investment Order", the Trustee shall invest the Trust Account
in Qualifying Assets.

                  (c)      From time to time, the Grantor may, subject to the
written approval of the Beneficiary as provided in Section 4(d) hereof, direct
the Trustee to substitute Qualifying Assets for other Qualifying Assets held in
the Trust Account at such time. The Trustee shall have no responsibility
whatsoever to determine the value of such substituted securities or that such
substituted securities constitute Qualifying Assets.

                  (d)      Subject to the terms of Section 5, the Trustee shall
not allow any substitutions or withdrawals of Assets from the Trust Account,
except on (i) written approval from the Beneficiary, or (ii) a call on or the
maturity of any Assets in the Trust Account if the Trustee pays the proceeds
from the Asset into the Trust Account.

                  (e)      All investments and substitutions of securities
referred to in paragraphs (b) and (c) of this Section 4 shall be in compliance
with the relevant limitations in "Qualifying Assets", as set forth in Section 11
of this Agreement. The Trustee shall have no responsibility whatsoever to
determine that any Assets in the Trust Account are or continue to be Qualifying
Assets. The Trustee shall execute Investment Orders and settle securities
transactions by itself or by means of an agent or broker. The Trustee shall not
be responsible for any act or omission, or

                                      -8-

<PAGE>

for the solvency, of any such agent or broker unless said act or omission is the
result, in whole or in part, of the Trustee's negligence, willful misconduct or
lack of good faith.

                  (f)      Any loss incurred from any investment pursuant to the
terms of this Section 4 shall be borne exclusively by the Trust Account. The
Trustee shall not be liable for any loss due to changes in market rates or
penalties for early redemption.

SECTION 5.        THE INCOME ACCOUNT.

                  The Grantor shall establish and maintain an income account
with the Trustee for its own benefit (the "Income Account") at an office of the
Trustee. All payments of interest and dividends actually received in respect of
Assets in the Trust Account shall be deposited and held in the Income Account
and distributed by the Trustee to the Grantor within 10 days following the end
of each calendar month. The Grantor shall provide the Trustee with the
appropriate wiring instructions for such distributions.

SECTION 6.        RIGHT TO VOTE ASSETS.

                  (a)      The Trustee shall forward all annual and interim
stockholder reports and all proxies and proxy materials relating to the Assets
in the Trust Account to the Grantor. The Grantor shall have the full and
unqualified right to vote any Assets in the Trust Account.

 SECTION 7.       ADDITIONAL RIGHTS AND DUTIES OF THE TRUSTEE.

                  (a)      The Trustee shall receive Assets and hold the Assets
in a safe place;

                  (b)      The Trustee shall determine that the Assets are in a
form that the Beneficiary, or the Trustee on direction of the Beneficiary, may
negotiate whenever necessary, without consent or signature from the Grantor or
any other person or entity;

                                      -9-

<PAGE>

                  (c)      The Trustee shall provide to the Grantor and the
Beneficiary a statement of all Assets in the Trust Account on its inception and
following the end of each month;

                  (d)      The Trustee shall notify the Grantor and the
Beneficiary, within 10 days, of any deposits to or withdrawals from the Trust
Account;

                  (e)      The Trustee shall hold the Assets in the Trust
Account;

                  (f)      The Trustee may deposit any Assets in the Trust
Account in a book-entry account maintained at the appropriate Federal Reserve
Bank or in depositories such as the Depository Trust Company. Assets may be held
in the name of a nominee maintained by the Trustee or by any such depository.

                  (g)      The Trustee shall accept and open all mail directed
to the Grantor or the Beneficiary in care of the Trustee.

                  (h)      Upon the request of the Grantor or the Beneficiary,
the Trustee shall promptly permit the Grantor or the Beneficiary, their
respective agents, employees or independent auditors to examine, audit, excerpt
transcribe and copy, during the Trustee's normal business hours, any books,
documents, papers and records relating to the Trust Account or the Assets.

                  (i)      The Trustee is authorized to follow and rely upon all
instructions given by applicable officers named in incumbency certificates
furnished to the Trustee from time to time by the Grantor and Beneficiary,
respectively, and by attorneys-in-fact acting under written authority furnished
to the Trustee by the Grantor or the Beneficiary, including, without limitation,
instructions given by letter, facsimile transmission, telegram, teletype,
cablegram or

                                      -10-

<PAGE>

electronic media other than e-mail, if the Trustee believes such instructions to
be genuine and to have been signed, sent or presented by the proper party or
parties. Such instructions may also be in a tested communication or in a
communication utilizing access codes effected between electro-mechanical or
electronic devices. The Trustee shall not incur any liability to anyone
resulting from actions taken by the Trustee in reliance in good faith on such
instructions. The Trustee shall not incur any liability in executing
instructions (i) from an attorney-in-fact or (ii) from any officer of the
Grantor of the Beneficiary named in an incumbency certificate delivered
hereunder prior to receipt by it of a more current certificate.

                  (j)      The duties and obligations of the Trustee shall only
be such as are specifically set forth in this Agreement, as it may from time to
time be amended, and no implied duties or obligations shall be read into this
Agreement against the Trustee. The Trustee shall not be charged with knowledge
of any document, instrument or agreement, other than this Agreement. The Trustee
shall only be liable for its own negligence, willful misconduct or lack of good
faith.

                  (k)      No provision of this Agreement shall require the
Trustee to take any action which, in the Trustee's reasonable judgment, would
result in any violation of this Agreement or any provision of law or, following
written advice from counsel, expose the Trustee to personal liability.

                  (l)      The Trustee may confer with counsel of its own choice
in relation to matters arising under this Agreement and shall have full and
complete authorization from the other Parties hereunder for any action taken or
suffered by it under this Agreement or under any transaction contemplated hereby
in good faith and in accordance with opinion of such counsel.

                                      -11-

<PAGE>

                  (m)      The invasion of the trust corpus to pay compensation
to, or reimburse the expense of, the Trustee is hereby prohibited.

                  (n)      The Trustee shall deliver to the Beneficiary written
notice of termination as and when required under Section 10(b).

                  (o)      Except as may arise from the Trustee's own negligence
or willful misconduct or lack of good faith, the Trustee shall be without
liability for any loss, liability, claim or expense resulting from or caused by
events or circumstances beyond the reasonable control of the Trustee, including,
without limitation, the interruption, suspension or restriction of trading on or
the closure of any securities markets, power or other mechanical or
technological failures or interruptions, or computer viruses or communications
disruptions, work stoppages, natural disasters or other similar events or acts,
delays or inability to perform its duties due to any disorder in market
infrastructure with respect to any particular security or changes to any
provision of any present or future law or regulation or order of the United
States of America, or any state thereof, or any other country, or political
subdivision thereof or any court of competent jurisdiction.

                  (p)      The Trustee, in incurring any debt, liability or
obligation, or in taking or omitting to take any action for or in connection
with the Trust, is and shall be deemed to be acting solely as a trustee, and not
in an individual capacity. The Trustee shall assume no responsibility and shall
not be held to any personal liability whatsoever in tort, contract, or otherwise
for any action taken or omitted pursuant to this Agreement. In the event that
the Grantor or the Beneficiary enters into any agreement or arrangement of any
kind with any third party with respect to all or any part of the Trust Account,
the Grantor or the Beneficiary, as

                                      -12-

<PAGE>

appropriate, shall ensure that the agreement or arrangement shall pose no risk
of personal liability to the Trustee.

SECTION 8.        THE TRUSTEE'S COMPENSATION, EXPENSES AND INDEMNIFICATION.

                  (a)      The Beneficiary shall pay the Trustee, as
compensation for its services under this Agreement, a fee at rates determined by
the Trustee and agreed to by the Beneficiary, from time to time and communicated
in writing to the Beneficiary. The Beneficiary shall pay or reimburse the
Trustee for all of the Trustee's reasonable expenses and disbursements in
connection with its duties under this Agreement (including attorney's fees and
expenses), except any such expense, or disbursement as may arise from the
Trustee's negligence, willful misconduct or lack of good faith. The Grantor
shall indemnify, defend and save harmless the Trustee from all loss or expense
(including attorney's fees and expenses) arising out of or in connection with
(i) its execution and performance of this Agreement, except to the extent that
such loss, liability or expense is due to the negligence, willful misconduct or
lack of good faith of the Trustee, or (ii) its following any instructions or
other directions from the Grantor, except to the extent that its following any
such instructions or direction is expressly forbidden by the terms hereof. In no
event shall the Trustee be liable for special, indirect or consequential loss or
damage of any kind whatsoever. The Grantor hereby acknowledges that the
foregoing indemnities shall survive the resignation of the Trustee or the
termination of this Agreement and hereby grants the Trustee a lien, right of
set-off and security interest in the funds in the Income Account for the payment
of any claim for indemnity, or payment of its fees and reasonable expenses and
disbursements, as expressly provided in this Section 8. In the event that the
Trustee should withdraw funds from the Income Account in satisfaction of its
fees, expenses or

                                      -13-

<PAGE>

disbursements pursuant to this Section 8, the Beneficiary shall be liable to,
and shall reimburse, the Grantor for such amounts.

                  (b)      No Assets shall be withdrawn from the Trust Account
or used in any manner for paying compensation to, or reimbursement or
indemnification of, the Trustee.

SECTION 9.        RESIGNATION OR REMOVAL OF THE TRUSTEE.

                  (a)      The Trustee may resign at any time by giving not less
than sixty (60) days' written notice thereof to the Beneficiary and to the
Grantor, such resignation to become effective only on the acceptance of
appointment by a successor trustee and the transfer to such successor trustee of
all Assets in the Trust Account in accordance with paragraph (b) of this
Section 9.

                  (b)      Upon receipt of the Trustee's notice of resignation,
the Grantor and the Beneficiary shall appoint a successor trustee. Any successor
trustee shall be a Qualified United States Financial Institution and shall not
be a Parent, a Subsidiary or an Affiliate of the Grantor or the Beneficiary.
Upon the acceptance of the appointment as trustee hereunder by a successor
trustee and the transfer to such successor trustee of all Assets in the Trust
Account, the resignation of the Trustee shall become effective. Thereupon, such
successor trustee shall succeed to and become vested with all the rights,
powers, privileges and duties of the Trustee, and the Trustee shall be
discharged from any future duties and obligations under this Agreement, but the
Trustee shall continue after its resignation to be entitled to the benefits of
the indemnities provided herein for the Trustee. If a successor has not been
appointed within sixty (60) days of the Trustee's notice of resignation, the
Trustee may apply to a court of competent jurisdiction to have a successor
trustee appointed.

                                      -14-

<PAGE>

                  (c)      The Grantor may remove the Trustee at any time by
giving not less than sixty (60) days' written notice thereof to the Beneficiary
and to the Trustee, such removal to become effective only on the acceptance of
appointment by a successor trustee and the transfer to such successor trustee of
all Assets in the Trust Account in accordance with paragraph (d) of this Section
9.

                  (d)      Upon receipt of the Grantor's notice of removal, the
Grantor and the Beneficiary shall appoint a successor trustee. Any successor
trustee shall be a Qualified United States Financial Institution and shall not
be a Parent, a Subsidiary or an Affiliate of the Grantor or the Beneficiary.
Upon the acceptance of the appointment as trustee hereunder by a successor
trustee and the transfer to such successor trustee of all Assets in the Trust
Account, the removal of the Trustee shall become effective. Thereupon, such
successor trustee shall succeed to and become vested with all the rights,
powers, privileges and duties of the Trustee, and the Trustee shall be
discharged from any future duties and obligations under this Agreement, but the
Trustee shall continue after its removal to be entitled to the benefits of the
indemnities provided herein for the Trustee.

SECTION 10.       TERMINATION OF THE TRUST ACCOUNT.

                  (a)      The Trust Account and this Agreement, except as
provided in Section 1(e) hereof and except for the indemnities provided herein,
may be terminated only after (i) the Grantor and the Beneficiary have given the
Trustee written notice of their intention to terminate the Trust Account (the
"Notice of Intention"), and (ii) the Trustee has given the Grantor and the
Beneficiary the written notice specified in paragraph (b) of this Section 10.
The Notice of Intention shall specify the date on which the notifying Party
intends the Trust Account to terminate (the "Proposed Date").

                                      -15-

<PAGE>

                  (b)      Within ten Business Days following receipt by the
Trustee of the Notice of Intention, the Trustee shall give written notification
(the "Termination Notice") to the Beneficiary and the Grantor of the date (the
"Termination Date") on which the Trust Account shall terminate. The Termination
Date shall be (a) the Proposed Date (or if not a Business Day, the next Business
Day thereafter), if the Proposed Date is at least 30 days but no more than 45
days subsequent to the date the Termination Notice is given; (b) 30 days
subsequent to the date the Termination Notice is given (or if not a Business
Day, the next Business Day thereafter), if the Proposed Date is fewer than 30
days subsequent to the date the Termination Notice is given; or (c) 45 days
subsequent to the date the Termination Notice is given (or if not a Business
Day, the next Business Day thereafter), if the Proposed Date is more than 45
days subsequent to the date the Termination Notice is given.

                  (c)      On the Termination Date, upon receipt of written
approval of the Beneficiary, the Trustee shall transfer to the Grantor any
Assets remaining in the Trust Account, at which time all liability of the
Trustee with respect to such Assets shall cease.

SECTION 11.       INSOLVENCY OF GRANTOR.

                  (a)      Notwithstanding any other provision in this
Agreement, if the Grantor has been declared insolvent or placed into
receivership, rehabilitation, liquidation, or similar proceedings under the laws
of Maryland, the Trustee shall comply with any order of the regulatory authority
with oversight over the Trust Account or court of competent jurisdiction
directing the Trustee to transfer to such regulatory authority or other
designated receiver all of the Assets in the Trust Account, less any amounts
owed by the Grantor to the Trustee pursuant to this Agreement.

                                      -16-

<PAGE>

                  (b)      The Assets so transferred shall be applied in
accordance with the priority statutes of the state in which the Trust Account is
established applicable to the assets of insurance companies in liquidation.

                  (c)      If the regulatory authority with oversight over the
Trust Account determines that the Assets held in the Trust Account or any part
of the Assets are not necessary to satisfy the claims of the Beneficiary, the
Assets or any part of the Assets shall be returned to the Trustee for
distribution in accordance with this Agreement.

SECTION 12.       DEFINITIONS.

                  Except as the context shall otherwise require, the following
terms shall have the following meanings for all purposes of this Agreement (the
definitions to be applicable to both the singular and the plural forms of each
term defined if both such forms of such term are used in this Agreement):

                  The term "Affiliate" with respect to any corporation shall
mean a corporation which directly, or indirectly through one of more
intermediaries, controls or is controlled by, or is under common control with,
such corporation. The term "control" (including the related terms "controlled
by" and "under common control with") shall mean the ownership, directly or
indirectly, of more than fifty percent (50%) of the voting stock of a
corporation.

                  The term "Business Day" shall mean any day on which the
offices of the Trustee in Boston, Massachusetts are open for business.

                  The term "Expenses" shall mean the Trustee's reasonable
expenses and disbursements in connection with its duties under this Agreement
(including reasonable

                                      -17-

<PAGE>

attorney's fees and expenses) not including any such expense, or disbursement as
may arise from the Trustee's gross negligence, willful misconduct or lack of
good faith.
                  The term "Obligations" shall mean, with respect to the
Retrocession Agreement, (a) reinsured losses and allocated loss expenses paid by
the Beneficiary, but not recovered from the Grantor, (b) reserves for reinsured
losses reported and outstanding, (c) reserves for reinsured losses incurred but
not reported, and (d) reserves for allocated reinsured loss expenses and
unearned premiums.

                  The term "Parent" shall mean an institution that, directly or
indirectly, controls another institution.

                  The term "person" shall mean and include an individual, a
corporation, a partnership, an association, a trust, an unincorporated
organization or a government or political subdivision thereof.

                  The term "Qualified United States Financial Institution" shall
have the meaning provided in COMAR 31.05.08.08.

                  The term "Qualifying Assets" shall mean and include any
security that conforms with the criteria set forth in the Investment Guidelines.

                  The term "Subsidiary" shall mean an institution controlled,
directly or indirectly, by another institution.

SECTION 13.       GOVERNING LAW.

                  This Agreement shall be governed by and construed in
accordance with the laws of the Commonwealth of Massachusetts without regard to
its choice of laws principles.

                                      -18-

<PAGE>

SECTION 14.       GRANTOR'S TAX STATUS.
                  The Grantor shall provide the Trustee with a Certificate of
Foreign Status on Form W-8 (or any successor form) or its Tax Identification
Number (TIC) as assigned by the Internal Revenue Service, as applicable. All
income arising from the Assets in the Trust Account shall be treated as income
of the Grantor for U.S. federal income tax purposes.

SECTION 15.       SUCCESSORS AND ASSIGNS.

                  No Party may assign this Agreement or any of its obligations
hereunder without the prior written consent of the other Parties; provided,
however, that this Agreement shall inure to the benefit of and bind those who,
by operation of law, become successors to the Parties, including, without
limitation, any liquidator, rehabilitator, receiver or conservator and any
successor merged or consolidated entity and provided further that, in the case
of the Trustee, the successor trustee is eligible to be a trustee under the
terms hereof.

SECTION 16.       SEVERABILITY.

                  In the event that any provision of the Agreement shall be
declared invalid or unenforceable by any regulatory body or court having
jurisdiction, such invalidity or unenforceability shall not affect the validity
or enforceability of the remaining portions of this Agreement.

SECTION 17.       ENTIRE AGREEMENT.

                 This Agreement constitutes the entire agreement among the
Parties, and there are no understandings or agreement, conditions or
qualifications relative to this Agreement which are not fully expressed in this
Agreement.

                                      -19-

<PAGE>

SECTION 18.       AMENDMENTS.

                  This Agreement may be modified or otherwise amended, and the
observance of any term of this Agreement may be waived, if such modification,
amendment or waiver is in writing and signed by all of the Parties.

SECTION 19.       NOTICES, ETC.

                  Unless otherwise provided in this Agreement, all notices,
directions, requests, demands, acknowledgments and other communications required
or permitted to be given or made under the terms hereof shall be in writing and
shall be deemed to have been duly given or made on the date received when
addressed as follows:

                 If to the Grantor:      Platinum Underwriters Reinsurance, Inc.
                                         195 Broadway
                                         New York, New York 10007
                                         Attention: Chief Financial Officer
                                         Fax No.: (212) 238-9202

                 If to the Beneficiary:  The St. Paul Companies, Inc.
                                         385 Washington Street
                                         St. Paul,Minnesota 55102
                                         Attention: General Counsel
                                         Fax No.: (410)205-6967

                 If to the Trustee:      State Street Bank and Trust Company
                                         801 Pennsylvania Avenue
                                         Kansas City, Missouri 64105
                                         Attention: Vice President
                                         Fax No.: (816)871-9210

                  Each Party may from time to time designate a different address
for notices, directions, requests, demands, acknowledgments and other
communications by giving written notice of such change to the other Parties. All
notices, directions, requests, demands, acknowledgments and other communications
relating to the Beneficiary's approval of the

                                      -20-

<PAGE>

Grantor's authorization to substitute Assets and to the termination of the Trust
Account shall be in writing and may not be made or given by prepaid telex,
telegraph or telecopier.

SECTION 20.       HEADINGS.

                  The headings of the Sections and the Table of Contents have
been inserted for convenience of reference only, and shall not be deemed to
constitute a part of this Agreement.

SECTION 21.       COUNTERPARTS.

                  This Agreement may be executed in any number of counterparts,
each of which when so executed and delivered shall constitute an original, but
such counterparts together shall constitute one and the same Agreement.

                  [THIS SPACE INTENTIONALLY LEFT BLANK]

                                      -21-

<PAGE>

                  IN WITNESS WHEREOF, the Parties hereto have caused this
Agreement to be executed and delivered by their respective officers thereunto
duly authorized as of the date first above written,

                                    PLATINUM UNDERWRITERS REINSURANCE, INC.
                                    As Grantor

                                    By: /s/ Michael D. Price
                                        -----------------------------------
                                        Name: Michael D. Price
                                        Title:

                                    MOUNTAIN RIDGE INSURANCE COMPANY
                                    As Beneficiary

                                    By: /s/ Thomas A. Bradley
                                        -----------------------------------
                                        Name:  Thomas A. Bradley
                                        Title: Executive Vice President and
                                               Chief Financial Officer

                                        and

                                    STATE STREET BANK AND TRUST COMPANY
                                    As Trustee

                                    By: /s/ Kenneth A. Bergeron
                                        -----------------------------------
                                        Name:  Kenneth A. Bergeron
                                        Title: Senior Vice President

                                      -22-

<PAGE>

                                    EXHIBIT A

1.       100% Quota Share Retrocession Agreement (Non-Traditional - D-1), dated
         as of November 1,2002

2.       100% Quota Share Retrocession Agreement (Non-Traditional - D-2), dated
         as of November 1,2002

3.       100% Quota Share Retrocession Agreement (Non-Traditional - D-Stop
         Loss), Dated as of November 1,2002

<PAGE>

                                    EXHIBIT B

                            List of Assets Deposited
                              to the Trust Account

                                      Cash

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