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                                                                   Exhibit 10.26

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                     100% QUOTA SHARE RETROCESSION AGREEMENT
                             (NON-TRADITIONAL - D-3)

                                 BY AND BETWEEN

                   ST. PAUL FIRE AND MARINE INSURANCE COMPANY

                                  (RETROCEDANT)

                                       and

                     PLATINUM UNDERWRITERS REINSURANCE, INC.

                               (RETROCESSIONAIRE)

                            DATED AS OF________, 2002

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

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

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

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

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

                                    ARTICLE I

                          BUSINESS COVERED; EXCLUSIONS

     Retrocedant hereby obligates itself to retrocede to Retrocessionaire and
Retrocessionaire hereby obligates itself to accept, pursuant to the terms of
this Agreement, a one hundred percent (100%) quota share of any and all
liabilities incurred by Retrocedant on or after January 1, 2002 but not yet paid
as of the Effective Time, net of Inuring Retrocessions (as defined in Section
7.01 herein), under only the Whole Account Excess of Loss Reinsurance Agreement
with Employers Reinsurance Corporation ("ERC") and any renewal thereof entered
into pursuant to the Underwriting Management Agreement between Retrocedant and
Retrocessionaire of even date hereof, for the period from September 12, 2001
through December 31, 2004 specified on Schedule A (the "REINSURANCE CONTRACT")
(solely for the convenience of the parties Exhibit A-2 sets forth Loss Reserves
(as defined in Exhibit A-1 hereto), over the Reinsurance Contract, by Class of
Business (as defined below), each as of June 30, 2002).

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

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

     With respect to any named storm(s) (which are any tropical cyclones
assigned a name by the National Hurricane Center) in existence as of the
Effective Time which cause insured damage within 10 days of the Effective Date,
except as provided for herein, Retrocedant shall retrocede one hundred percent
(100%) quota share of losses arising from all such storms, net of the inuring
benefit of Inuring Retrocessions as allocated

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

     The Flood Liabilities and the liabilities in respect of the named storms,
as described above retained by Retrocedant as specified above (collectively, the
"EXCLUDED LOSSES") shall not be subject to this Agreement.

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

                                   ARTICLE II

                                      TERM

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

                                   ARTICLE III

                                    COVERAGE

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

     SECTION 3.02    SECTION B (PROSPECTIVE) COVERAGE PERIOD. The Section B
(Prospective) Coverage Period will be the period from and including the
Effective Time

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through the commutation, expiration or final settlement of all liabilities under
the Reinsurance Contract.

     SECTION 3.03    FUNDS WITHHELD ACCOUNT.

     (a)   Pursuant to the Reinsurance Contract, is obligated to maintain a
funds withheld account (the "FUNDS WITHHELD ACCOUNT") for the benefit of
Retrocedant until the commutation of, the final loss settlement under or the
termination of the Reinsurance Contract. Pursuant to this Agreement, Retrocedant
shall maintain a notional funds withheld account ("NOTIONAL ACCOUNT") and shall
allocate the balance of the Funds Withheld Account between the 2001 underwriting
year ("PRIOR YEAR ACCOUNT") and future underwriting years ("CURRENT ACCOUNT").
The balance of the Prior Year Account shall be $5,000,000 at inception. The
balance of the Current Account shall be $12,100,000 plus any adjustment premiums
paid at any time.

     (b)   Pursuant to the terms of the Reinsurance Contract, balances in the
Funds Withheld Account will be applied against losses payable under the
Reinsurance Contract. Any reduction in the balance of the Funds Withheld Account
will be reflected in the Notional Account, as appropriate, allocated between the
Prior Year Account and the Current Account.

     Pursuant to the terms of the Reinsurance Contract, all loss settlement and
other payments to be made by Retrocedant under the Reinsurance Contract shall
first be made from the Funds Withheld Account until the balance of such account
is reduced to zero. Upon final loss settlement of losses allocable to the Prior
Year Account, the balance of such account shall be credited to the Current
Account.

     (c)   Under the terms of the Reinsurance Contract, ERC is required to pay
to Retrocedant a margin as defined in the Reinsurance Contract. One hundred
percent of the margin relating to the period September 12, 2001 through December
31, 2002 shall be paid by Retrocedant upon receipt to Retrocessionaire.

                                   ARTICLE IV

                      PREMIUMS AND ADDITIONAL CONSIDERATION

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

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

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December 31, 2001 as filed with the Minnesota Department of Commerce (consistent
with the methods, principles, practices and policies applied at June 30, 2002)
and as submitted to The St. Paul, provided, that in no event shall such amount
be less than Retrocedant's good faith estimate, based upon due investigation by
the Retrocedant, as of the date at which such calculation is being made, of all
Loss Reserves relating to the Reinsurance Contract by applicable Class of
Business that would be required (i) in order for such reserves to be in full
compliance with customary practices and procedures of Retrocedant for filings
and financial statements as of September 30, 2002, and (ii) to cause such
reserves to bear a reasonable relationship to the events, conditions,
contingencies and risks which are the bases for such reserves, to the extent
known by Retrocedant at the time of such calculation.

     (b)   On the 90th day following the Effective Date (or if such 90th day is
not a Business Day, the first Business Day following such 90th day), Retrocedant
shall prepare and deliver to Retrocessionaire an accounting (the "PROPOSED LOSS
RESERVE ACCOUNTING") of all Loss Reserves relating to the Reinsurance Contract,
as of the Effective Date, determined in accordance with this Section 4.01 and
the Methodology for Calculation of the Final Section A Premium, as set forth on
Exhibit A-1 hereto (the "FINAL SECTION A PREMIUM") and the reserves for ceding
commissions and brokerage fees as of the Effective Date (the "Final Ceding
Commission Reserves"), and taking into consideration all relevant data becoming
available to Retrocedant subsequent to the Effective Date. In the event the
Final Section A Premium for any individual Class of Business is greater than the
Initial Section A Premium for such individual Class of Business or the Final
Ceding Commission Reserves are less than the Initial Ceding Commission Reserves,
Retrocedant shall promptly pay to the account of Retrocessionaire the difference
plus interest on such amount at the Applicable Rate from and including the
Effective Date to and including the date of such payment. In the event the Final
Section A Premium for any individual Class of Business is less than the Initial
Section A Premium for such individual Class of Business or the Final Ceding
Commission Reserves are greater than the Initial Ceding Commission Reserves,
Retrocessionaire shall promptly pay to the account of Retrocedant the difference
plus interest on such amount at the Applicable Rate (as defined below) from and
including the Effective Date to and including the date of such payment. "Class
of Business" shall be defined as each individual class or line of business as
delineated by the Retrocedant as of the date hereof as set forth on Schedule A.

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

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Applicable Rate calculated from and including the Effective Date to and
including the date of such payment to Retrocessionaire.

     (d)   Notwithstanding the foregoing, the parties agree that all gross
estimated premiums written prior to the Effective Date and earned but not yet
billed, net of applicable ceding commission and retrocession premium (net of
retrocession commissions) ("EBUB", and also referred to as "estimated premiums
receivable" or "EBNR" or "earned but unbilled") as of the Effective Time and
relating to the Reinsurance Contracts, as determined on or before _____, 2002,
as set forth in Exhibit A-1, in a manner consistent with Retrocedant's customary
practices and procedures and as submitted to The St. Paul, shall be allocated to
Retrocedant. All payments received after the Effective Time by Retrocedant or
Retrocessionaire in respect of EBUB as of the Effective Time shall be retained
by Retrocedant or held on trust for and paid by Retrocessionaire to or to the
order of Retrocedant, and all rights to collect such amounts shall be retained
by or transferred to Retrocedant. Any changes made on or after the Effective
Time as to the estimated amount of EBUB as of the Effective Time shall be for
the account of Retrocessionaire and shall not affect the amount retained by
Retrocedant. The parties agree that as of the first anniversary of the date
hereof, Retrocessionaire shall pay to Retrocedant the difference, if any,
between the amount of EBUB as of the Effective Time and the aggregate amount
subsequently billed and paid to and/or retained by Retrocedant prior to that
date with respect to EBUB as of the Effective Time, it being understood that
Retrocedant shall bear all risk of non-payment and non-collectibility with
respect to premiums written and unearned as of the Effective Date and
subsequently billed. All amounts, if any, in respect of EBUB which are in excess
of EBUB as of the Effective Time, calculated pursuant to the first sentence of
this Section 4.01(d), shall be for the account of Retrocessionaire and no such
amounts shall be retained by or payable to Retrocedant.

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

     (a)   On the Effective Date, in respect of the Section B (Prospective)
Coverage Period, Retrocedant shall transfer to Retrocessionaire an aggregate
amount representing the sum of all amounts related and specifically allocated to
each individual Class of Business (the "INITIAL SECTION B PREMIUM") equal to the
carrying value on the books of Retrocedant as of September 30, 2002, of one
hundred percent (100%) of the unearned premium reserves, net of unearned ceding
commissions and net of Inuring Retrocession premiums as provided for in Section
7.04 and as allocated pursuant to Exhibit E, in each case relating to the
Reinsurance Contract, determined in accordance with statutory accounting
principles on a basis consistent in all material respects with the methods,
principles, practices and policies employed in the preparation and presentation
of Retrocedant's annual statutory financial statement as of December 31, 2001 as
filed with the Minnesota Department of Commerce (consistent with the methods,
principles, practices and policies applied at June 30, 2002) and as submitted to
The St. Paul.

     (b)   On the 90th day following the Effective Date (or if such 90th day is
not a Business Day, the first Business Day following such 90th day), Retrocedant
shall prepare and deliver to Retrocessionaire an accounting (the "PROPOSED
PREMIUM RESERVE

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ACCOUNTING", together with the Proposed Loss Reserve Accounting, the "PROPOSED
ACCOUNTING") of all unearned premium reserves relating to the Reinsurance
Contract, as of the Effective Date, determined in accordance with statutory
accounting principles on a basis consistent in all material respects with the
methods, principles, practices and policies employed in the preparation and
presentation of Retrocedant's annual statutory financial statement as of
December 31, 2001 as filed with the Minnesota Department of Commerce (consistent
with the methods, principles, practices and policies applied at June 30, 2002)
and as submitted to The St. Paul, relating to the Reinsurance Contract, net of
the unearned ceding commission and net of Inuring Retrocession premiums as
provided for in Section 7.04 and as allocated pursuant to Exhibit E (the "FINAL
SECTION B PREMIUM"). In the event the Final Section B Premium for any individual
Class of Business is greater than the Initial Section B Premium for such
individual Class of Business, Retrocedant shall promptly pay to the account of
Retrocessionaire the difference plus interest on such amount at the Applicable
Rate from and including the Effective Date to and including the date of such
payment. In the event the Initial Section B Premium for any individual Class of
Business is greater than the Final Section B Premium for such individual Class
of Business, Retrocessionaire shall promptly pay to the account of Retrocedant
the difference plus interest on such amount at the Applicable Rate from and
including the Effective Date to and including the date of such payment.

     (c)   Retrocedant shall transfer to Retrocessionaire with respect to all
Reinsurance Contract, one hundred percent (100%) of all gross premiums written
on or after the Effective Time, net of premium returns, allowances and
cancellations and less any applicable Retrocedant Ceding Commission and Inuring
Retrocession premiums as provided for in Section 7.04 and as allocated pursuant
to Exhibit E.

     (d)   Retrocedant shall retain all gross premiums attributable to losses
arising from the Excluded Losses, including but not limited to adjusted
premiums, portions of reinstatement premiums and other adjustments attributable
to such losses.

     SECTION 4.03    DISPUTE RESOLUTION.

     (a)   After receipt of the Proposed Accounting, together with the work
papers used in preparation thereof, Retrocessionaire shall have 30 days (the
"REVIEW PERIOD") to review such Proposed Accounting. Unless Retrocessionaire
delivers written notice to Retrocedant on or prior to the 30th day of the Review
Period stating that it has material objections to the Proposed Accounting for
one or more Classes of Business or the Final Ceding Commission Reserves,
Retrocessionaire shall be deemed to have accepted and agreed to the Proposed
Accounting. If Retrocessionaire so notifies Retrocedant of any material
objection(s) to the Proposed Accounting, the parties shall in good faith attempt
to resolve, within 30 days (or such longer period as the parties may agree)
following such notice (the "RESOLUTION PERIOD"), their differences with respect
to such material objections related to any Class of Business so identified.
Retrocedant and Retrocessionaire agree that only those Classes of Business (or
the Final Ceding Commission Reserves, if applicable) to which such notification
relates shall be subject to

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adjustment, and any resolution by them as to any disputed amounts, as evidenced
by a writing signed by both parties, shall be final, binding and conclusive.

     In the event that Retrocessionaire believes that Loss Reserves for a Class
of Business need to be increased beyond the amount implied by the algorithm set
forth in Exhibit A-1, or the Final Ceding Commission Reserves need to be
reduced, Retrocessionaire and Retrocedant will endeavor to agree on an
appropriate adjustment. If the two parties cannot agree on an adjustment,
Retrocedant may elect to (i) retain the liabilities and the associated Loss
Reserves for the subject Class of Business and all unearned premium and
Retrocessionaire shall transfer to Retrocedant all Initial Section A Premium and
Initial Section B Premium paid by Retrocedant for the subject Class of Business,
plus interest on the average daily amount at the Applicable Rate from the
Effective Date to the date of such transfer, or (ii) extend the time period for
adjusting the reserve to as much as 36 months or (iii) choose to arbitrate
according to Section 4.03(b), it being understood that arbitration according to
Section 4.03(b) shall be the sole remedy for disputes regarding the Final Ceding
Commission Reserves. In the event that Retrocedant chooses to extend the time
period for adjusting the reserves for a Class of Business, Retrocedant retains
the exposure to adverse loss development and Retrocessionaire will suffer no
exposure to paid losses in excess of the Initial Section A Premium and Initial
Section B Premium paid by Retrocedant. At the end of the extended period, any
continued disagreement between Retrocedant and Retrocessionaire would be
submitted to arbitration as set forth in Section 4.03(b) hereto.

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

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

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Judgment upon the final decision of the Arbiters may be entered in any court of
competent jurisdiction.

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

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

     (f)   Once the Proposed Accounting has been finalized in accordance with
the above process, the Final Section A Premium and the Final Section B Premium
amounts shall be as set forth in the Proposed Accounting, as determined by the
Arbiters, if applicable (the "ARBITRATED FINAL SECTION A PREMIUM" and/or
"ARBITRATED FINAL SECTION B PREMIUM", as the case may be). In the event the sum
of the Arbitrated Final Section A Premium and the Arbitrated Final Section B
Premium amounts (determined in accordance with the first sentence of this
Section 4.03(f)) is greater than the amount paid by Retrocedant to
Retrocessionaire on the Effective Date, Retrocedant shall promptly pay to the
account of Retrocessionaire the difference plus interest on such amount at the
Applicable Rate from and including the Effective Date to and including the date
of such payment. In the event the sum of such amounts (determined in accordance
with the first sentence of this Section 4.03(f)) is lower than the amount paid
by Retrocedant to Retrocessionaire on the Effective Date, Retrocessionaire shall
promptly pay to the account of Retrocedant the difference plus interest on such
amount at the Applicable Rate from the Effective Date to the date of such
payment.

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

                                    ARTICLE V

                          RETROCEDANT CEDING COMMISSION

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

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with respect to the liabilities transferred hereunder, as determined in
accordance with Retrocedant's customary practices and procedures.

                                   ARTICLE VI

                               ORIGINAL CONDITIONS

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

                                   ARTICLE VII

                              INURING RETROCESSIONS

     SECTION 7.01    ALLOCATION TO RETROCESSIONAIRE. Retrocedant agrees that the
retrocession contracts purchased by the reinsurance division of The St. Paul
("St. Paul Re") from third party retrocessionaires ("THIRD PARTY
RETROCESSIONAIRES") on behalf of Retrocedant prior to the Effective Time that
are listed on Exhibit B hereto shall inure to the benefit of Retrocessionaire to
the extent of liabilities covered under this Agreement ("INURING
RETROCESSIONS"), subject to the agreed allocations in Exhibits C, D and E. It is
further understood and agreed that facultative reinsurance not listed on Exhibit
B but relating to the Reinsurance Contract shall also inure to the benefit of
Retrocessionaire to the extent of liabilities covered under this Agreement and
shall be considered Inuring Retrocessions under this Agreement.

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

     SECTION 7.03    INURING RETROCESSIONS CLAIMS.

     (a)   Each of the parties agrees to transfer to the other party all
recoveries or any portion thereof that such party receives on or after the
Effective Time pursuant to the Inuring Retrocessions which are allocated to the
other party in the manner set forth in Exhibit D hereto. Retrocedant shall use
its commercially reasonable efforts to collect any recoveries due to
Retrocessionaire under the Inuring Retrocessions that indemnify the Retrocedant
for losses or expenses payable or return of premium allocable to the
Retrocessionaire and shall hold them on trust for, and pay them to or to the
order of Retrocessionaire. The parties agree that Retrocessionaire's obligations
to make payments

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pursuant to the Inuring Retrocessions or to reimburse Retrocedant pursuant to
this Agreement shall not be waived by non-receipt of any such amounts.
Retrocessionaire shall reimburse Retrocedant for one hundred percent (100%) of
any expenses reasonably incurred by Retrocedant in attempting to make such
collection, including all allocated expenses, as determined in accordance with
St. Paul Re's customary practices and procedures. Retrocessionaire shall have
the right to associate with Retrocedant, at Retrocessionaire's own expense, in
any actions brought by Retrocedant to make such collections.

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

     SECTION 7.04    INITIAL CONSIDERATION. To the extent not already reflected
in the calculation of Final Section B Premium, as part of the Section B
(Prospective) Coverage Period premiums described in Section 4.02,
Retrocessionaire shall reimburse Retrocedant for one hundred percent (100%) of
any and all unearned premiums paid by Retrocedant under such Inuring
Retrocessions net of any applicable unearned ceding commissions paid to
Retrocedant thereunder.

     SECTION 7.05    ADDITIONAL CONSIDERATION. Retrocessionaire agrees to pay
under the Inuring Retrocessions all future premiums Retrocedant is obligated to
pay pursuant to the terms of the Inuring Retrocessions to the extent that such
premiums are allocable to Retrocessionaire in the manner set forth in Exhibit D
hereto, and not otherwise paid by Retrocessionaire and to indemnify Retrocedant
for all such premiums paid directly by Retrocedant, net of any ceding
commissions and similar amounts paid by Third Party Retrocessionaires to
Retrocedant.

     SECTION 7.06    TERMINATION OR COMMUTATION OF INURING RETROCESSIONS.

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

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

                                      -11-
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                                  ARTICLE VIII

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

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

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

                                   ARTICLE IX

                          EXTRACONTRACTUAL OBLIGATIONS

           In the event Retrocedant or Retrocessionaire is held liable to
pay any punitive, exemplary, compensatory or consequential damages because of
alleged or actual bad faith or negligence related to the handling of any claim
under the Reinsurance Contract or otherwise in respect of the Reinsurance
Contract, the parties shall be liable for such damages in proportion to their
responsibility for the conduct giving rise to the damages. Such determination

                                      -12-
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shall be made by Retrocedant and Retrocessionaire, acting jointly and in good
faith, and in the event the parties are unable to reach agreement as to such
determination, recourse shall be had to Article XV hereof.

                                    ARTICLE X

                     ADMINISTRATION OF REINSURANCE CONTRACT

     SECTION 10.01   ADMINISTRATION.

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

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

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

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

                                      -13-
<Page>

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

                                   ARTICLE XI

                             REPORTS AND REMITTANCES

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

     SECTION 11.02   REMITTANCES. Within two Business Days after delivery of
each monthly report pursuant to Section 11.01, Retrocedant and Retrocessionaire
shall settle all amounts then due under this Agreement for that month. It is
agreed that Retrocedant shall retain all premiums received arising from all
business written for which the first day of the original cedant's account period
occurs prior to the Effective Date. With respect to premiums received arising
from business written for which the first day of the original cedant's account
period occurs on or after the Effective Date, Retrocedant shall retain all such
premiums received until such time as such aggregate amount of such premiums
received equals the net amount to be retained by Retrocedant pursuant to Section
4.01(d) and 4.02(b) herein, after which time, such premiums shall be remitted by
Retrocedant to Retrocessionaire.

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

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

                                      -14-
<Page>

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

                                  ARTICLE XII

                             MAINTENANCE OF LICENSES

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

                                  ARTICLE XIII

                                ACCESS TO RECORDS

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

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

                                      -15-
<Page>

designated representative to, treat and hold as confidential information any
information it receives or obtains pursuant to this Article XIII.

                                   ARTICLE XIV

                                 INDEMNIFICATION

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

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

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

     (b)   An Indemnifying Party may elect to defend or to seek to settle or
compromise, at such Indemnifying

                                      -16-
<Page>

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

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

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

     (e)   Notwithstanding anything in this Article XIV to the contrary, neither
an Indemnifying Party nor an Indemnitee may settle or compromise any claim over
the objection of the other; PROVIDED that consent to settlement or compromise
shall not be unreasonably withheld or delayed. If an Indemnifying Party notifies
the Indemnitee in writing of such Indemnifying Party's desire to settle or
compromise a Third Party Claim on the basis set forth in such notice (provided
that such settlement or compromise includes as an unconditional term thereof the
giving by the claimant or plaintiff of a written release of the Indemnitee from
all liability in respect thereof) and the Indemnitee shall notify the
Indemnifying Party in writing that such Indemnitee declines to accept any

                                      -17-
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such settlement or compromise, such Indemnitee may continue to contest such
Third Party Claim, free of any participation by such Indemnifying Party, at such
Indemnitee's sole expense. In such event, the obligation of such Indemnifying
Party to such Indemnitee with respect to such Third Party Claim shall be equal
to (i) the costs and expenses of such Indemnitee prior to the date such
Indemnifying Party notifies such Indemnitee of the offer to settle or compromise
(to the extent such costs and expenses are otherwise indemnifiable hereunder)
PLUS (ii) the lesser of (A) the amount of any offer of settlement or compromise
which such Indemnitee declined to accept and (B) the actual out-of-pocket amount
such Indemnitee is obligated to pay subsequent to such date as a result of such
Indemnitee's continuing to pursue such Third Party Claim.

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

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

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

                                   ARTICLE XV

                                   ARBITRATION

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

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

     (c)   Within 30 days of receipt of the demand for arbitration, the
responding party shall notify the demanding party of any additional issues to be
resolved in the arbitration and the name of the responding party's appointed
arbitrator. If the responding party refuses or neglects to appoint an arbitrator
within 30 days following receipt of the

                                      -18-
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written arbitration demand, then the demanding party may appoint the second
arbitrator, but only after providing 10 days' written notice of its intention to
do so, and only if such other party has failed to appoint the second arbitrator
within such 10 day period.

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

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

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

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

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

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

                                      -19-
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     (j)   This Article XV shall survive termination of this Agreement.

                                   ARTICLE XVI

                                   INSOLVENCY

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

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

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

                                  ARTICLE XVII

                                     OFFSET

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

                                      -20-
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                                  ARTICLE XVIII

                              ERRORS AND OMISSIONS

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

                                  ARTICLE XIX

                        CREDIT FOR REINSURANCE; SECURITY

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

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

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

                                   ARTICLE XX

                            MISCELLANEOUS PROVISIONS

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

                                      -21-
<Page>

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

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

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

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

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

               If to Retrocedant:

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

                                      -22-
<Page>

               If to Retrocessionaire:

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

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

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

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

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

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

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

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

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

                                      -23-
<Page>

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

                                          ST. PAUL FIRE AND MARINE
                                          INSURANCE COMPANY

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

                                          PLATINUM UNDERWRITERS
                                          REINSURANCE, INC.

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

                                      -24-
<Page>

                                                       Draft of October 15, 2002

                                   SCHEDULE A

The Whole Account Excess of Loss Reinsurance Agreement with Employers
Reinsurance Corporation for the period from September 12, 2001 through December
31, 2004. Non-Traditional Class D.

                                       A-1
<Page>

                                   EXHIBIT A-1

                                  LOSS RESERVES

Loss Reserves shall consist of loss and loss adjustment expense reserves,
including incurred but not reported loss and loss adjustment expense reserves,
as of the Effective Time with respect to premium earned on the Reinsurance
Contract net of retrocessional recoverables under the Inuring Retrocessions.
Loss Reserves shall not include any loss and loss adjustment expense reserves or
ceding commission reserves relating to Excluded Losses. Aggregate Loss Reserves
as of June 30, 2002 are set forth on Exhibit A-2.

             METHODOLOGY FOR CALCULATION OF FINAL SECTION A PREMIUM

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

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

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

          CALCULATION METHODOLOGY FOR EARNED BUT NOT YET BILLED PREMIUM

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

                                      A-1-1
<Page>

                                   EXHIBIT A-2

                       LOSS RESERVES BY CLASS OF BUSINESS

                               As of June 30, 2002

<Table>
<Caption>
                                                       Deposit          Profit
                                          IBNR        Liabilities     Commissions
                                         ------       -----------     -----------
<S>                                      <C>          <C>               <C>
New York & Vermont  Non-Traditional D                                   5,030,000
</Table>

                                      A-2-1
<Page>

                                    EXHIBIT B

                              INURING RETROCESSIONS

                                       B-1
<Page>

FER 17/10/02

Platinum Re_Inuring Reinsurance 17_10_02.xls

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

            AS AT 17/10/02

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

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

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

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

<Caption>
    No.     Name of Contract                  Projected Prem.      Participants        % Placed
-----------------------------------------------------------------------------------------------
     <S>    <C>                           <C>                     <C>                     <C>
     1)     Worldwide Property            USD 9m - USD 12m [100%  Nisshin - 50%            55%
            Excluding Japan               treaty estimate]        Nichido -  5%

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

     3)     UK/Europe Cat. XL             GBP 3m - GBP 3.5m       Montpelier              100%
            Quota Share Treaty                                    Re - 100%

     4)     Japan Cat. XL                 USD 1.2m                PX Re - 100%            100%
            Surplus Treaty
</Table>

                                       B-2
<Page>

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

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

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

<Caption>
     <S>    <C>                                   <C>                     <C>
     5)     Casualty Clash Quota                  Auto-Owners             100%
            Share                                 Ins. Co.

     6)     Nisshin NM Open Cover                 Nisshin F & M           100%

     7)     North America Property                Montpelier Re           100%
            Cat. Quota Share
</Table>

                                       B-3
<Page>

FER 17/10/02

Platinum Re_Inuring Reinsurance 17_10_02.xls

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

            AS AT 17/10/02

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

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

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

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

<Caption>
 Reference
    No.     Name of Contract       ROL      % Placed              Participants
---------------------------------------------------------------------------------------------
    <S>     <C>                   <C>         <C>      <C>
    1a)     Marine XL (a)         26.67%      100%     PX Re - 44.20%
                                                       Lloyd's Synd. 2121 (HYL) - 10%
                                                       Cornhill Ins. - 33.33%
                                                       XL Re - 12.47%

    1b)     Marine XL (b)         25.00%      100%     Lloyd's Synd. 1861 (BRM) - 20%
                                                       QBE Intnl. London - 30%
                                                       Cornhill - 25%
                                                       Odyssey London Branch - 25%

    1c)     Marine XL (c)         15.00%      100%     QBE Intnl. London - 50%
                                                       Cornhill - 25%
                                                       Odyssey London Branch - 25%

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

                                       B-4
<Page>

<Table>
    <S>     <C>                 <C>         <C>      <C>                <C>           <C>                <C>           <C>
    2b)     International       7/11/01     7/10/02  Protects Europe    $ 7,500,000   $ 15,000,000       1 @ 100%      $ 1,162,500
            Property Cat. XL                         Risk/Prorata/Cat.  L 5,000,000   L 10,000,000                     L   775,000
                                                     XL business

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

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

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

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

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

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

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

                                       B-5
<Page>

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

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

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

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

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

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

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

    5)      Satellite XL           5.75%      100%     Renaissance Re - 100%
            [Geosynchronous/
            Geostationary
            In-Orbit
            Reinsurance]

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

    7)      Caribbean ILW         23.00%      100%     Continental Casualty - 100%
            XOL
</Table>

                                       B-6
<Page>

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

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

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

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

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

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

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

<Caption>
    <S>     <C>                   <C>         <C>      <C>
    8)      N.A. $10 Billion      20.00%      100%     Transatlantic Re - 100%
            ILW

    9)      N.A. $10 Billion      19.00%      100%     IPC Re Limited - 100%
            ILW

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

    11)     N.A. Property Cat     19.00%      100%     Odyssey Re - 100%
            $15B ILW

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

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

    13)     Single Period                     100%     Underwriters Reinsurance - 53.75%
            Accident Year                              London Life & General - 25%
            Aggregate XOL                              PMA Reins. - 10%
            (Holborn)                                  Hannover Re - 9%
                                                       E & S Reins. - 2.25%
</Table>

                                       B-7
<Page>

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

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

<Caption>
    <S>     <C>                   <C>         <C>      <C>
    14)     Workers'                                   Swiss Re - 81.25%
            Compensation Cat.                 100%     Hannover - 15%
            XOL (Holborn)                              E & S Reins. - 3.75%

    15)     Puerto Rico ILW       12.50%      100%     ACE Tempest Re - 50%
            XOL                                        Renaissance Re - 50%
</Table>

                                       B-8
<Page>

                                    EXHIBIT C

                            ALLOCATION OF RECOVERIES

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

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

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

                                       C-1
<Page>

                                    EXHIBIT D

                      ALLOCATION OF RETROCESSIONAL PREMIUMS

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

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

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

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

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

                                       D-1
<Page>

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

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

                                       D-2
<Page>

                                    EXHIBIT E

                              ALLOCATION OF LIMITS

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

                                       E-1
<Page>

                                    EXHIBIT F

                          FORM OF RETROCEDANT'S REPORT

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

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

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

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

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

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

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

                                       F-1
<Page>

                                    EXHIBIT G

                      ALLOCATION OF ADMINISTRATIVE EXPENSES

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

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

                                       G-1<Page>

                                                                   Exhibit 10.27

================================================================================

                     100% QUOTA SHARE RETROCESSION AGREEMENT
                             (NON-TRADITIONAL - D-4)

                                 BY AND BETWEEN

                   ST. PAUL FIRE AND MARINE INSURANCE COMPANY

                                  (RETROCEDANT)

                                       and

                     PLATINUM UNDERWRITERS REINSURANCE, INC.

                               (RETROCESSIONAIRE)

                            DATED AS OF________, 2002

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

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

<Page>

of Retrocedant, Platinum Holdings acquired one hundred percent (100%) of the
issued and outstanding Shares; and

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

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

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

                                    ARTICLE I

                          BUSINESS COVERED; EXCLUSIONS

     Retrocedant hereby obligates itself to retrocede to Retrocessionaire and
Retrocessionaire hereby obligates itself to accept, pursuant to the terms of
this Agreement, a one hundred percent (100%) quota share of any and all
liabilities incurred by Retrocedant on or after January 1, 2002 but not yet paid
as of the Effective Time, net of Inuring Retrocessions (as defined in Section
7.01 herein), under only Section 3 of the Whole Account Excess of Loss
Reinsurance Agreement with Transatlantic Reinsurance Corporation or all renewals
thereof entered into pursuant to the Underwriting Management Agreement between
Retrocedant and Retrocessionaire of even date herewith, for the period from
September 12, 1999 through September 30, 2002 identified on Exhibit A-1 hereto
(the "REINSURANCE CONTRACT") (solely for the convenience of the parties, Exhibit
A-2 sets forth Loss Reserves (as defined in Exhibit B hereto), over the
Reinsurance Contracts, by Class of Business (as defined below), each as of June
30, 2002).

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

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

     With respect to any named storm(s) (which are any tropical cyclones
assigned a name by the National Hurricane Center) in existence as of the
Effective Time which cause insured damage within 10 days of the Effective Date,
except as provided for herein,

                                       -2-
<Page>

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

     The Flood Liabilities and the liabilities in respect of the named storms,
as described above retained by Retrocedant as specified above (collectively, the
"EXCLUDED LOSSES") shall not be subject to this Agreement.

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

                                   ARTICLE II

                                      TERM

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

                                   ARTICLE III

                                    COVERAGE

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

                                       -3-
<Page>

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

     SECTION 3.03   FUNDS WITHHELD ACCOUNT.

     (a)  Pursuant to the Reinsurance Contract, Transatlantic Reinsurance
Corporation ("TRC") is obligated to maintain a funds withheld account (the
"FUNDS WITHHELD ACCOUNT") for the benefit of Retrocedant until the commutation
of, the final loss settlement under or the termination of the Reinsurance
Contract. Pursuant to this Agreement, Retrocedant shall maintain a notional
funds withheld account ("NOTIONAL ACCOUNT"). The initial balance in the Notional
Account shall equal the balance of the Funds Withheld Account as of the
Effective Date plus an additional $775,000. The balance of Notional Account
shall never be less than zero.

     (b)  Pursuant to the Reinsurance Contract, losses payable by Retrocedant
will be offset by funds held in the Funds Withheld Account and the balance of
the Funds Withheld Account reduced accordingly. The balance in the Notional
Account shall first be applied to ultimate losses corresponding to losses
relating to accident years 2001 and prior before being applied to losses
relating to the 2002 accident year, and shall be reduced accordingly. It is
understood that Retrocessionaire shall be obligated to make payments under this
Agreement only with respect to losses payable after the balance of the Notional
Account has been reduced to zero.

                                   ARTICLE IV

                      PREMIUMS AND ADDITIONAL CONSIDERATION

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

     (a)  On the Effective Date, in respect of the Section A (Retrospective)
Coverage Period, Retrocedant shall pay to the account of Retrocessionaire an
aggregate amount representing the sum of all amounts related and specifically
allocated to each individual Class of Business (the "INITIAL SECTION A PREMIUM")
equal to one hundred percent (100%) of the carrying value on the books of the
Retrocedant as of September 30, 2002, of the aggregate of all Loss Reserves
relating to the Reinsurance Contract, determined in accordance with statutory
accounting principles on a basis consistent in all material respects with the
methods, principles, practices and policies employed in the preparation and
presentation of Retrocedant's annual statutory financial statement as of
December 31, 2001 as filed with the Minnesota Department of Commerce (consistent
with the methods, principles, practices and policies applied at June 30, 2002)
and as submitted to The St. Paul, provided, that in no event shall such amount
be less than Retrocedant's good faith estimate, based upon due investigation by
the Retrocedant, as of the date at which such calculation is being made, of all
Loss Reserves relating to the Reinsurance Contract by applicable Class of
Business that would be required (i) in order for such reserves to be in full
compliance with customary practices and procedures of

                                       -4-
<Page>

Retrocedant for filings and financial statements as of September 30, 2002, and
(ii) to cause such reserves to bear a reasonable relationship to the events,
conditions, contingencies and risks which are the bases for such reserves, to
the extent known by Retrocedant at the time of such calculation.

     (b)  On the 90th day following the Effective Date (or if such 90th day is
not a Business Day, the first Business Day following such 90th day), Retrocedant
shall prepare and deliver to Retrocessionaire an accounting (the "PROPOSED LOSS
RESERVE ACCOUNTING") of all Loss Reserves relating to the Reinsurance Contract,
as of the Effective Date, determined in accordance with this Section 4.01 and
the Methodology for Calculation of the Final Section A Premium as set forth on
Exhibit C hereto (the "FINAL SECTION A PREMIUM") and the reserves for ceding
commissions and brokerage fees as of the Effective Date (the "Final Ceding
Commission Reserves"), and taking into consideration all relevant data becoming
available to Retrocedant subsequent to the Effective Date. In the event the
Final Section A Premium for any individual Class of Business is greater than the
Initial Section A Premium for such individual Class of Business or the Final
Ceding Commission Reserves are less than the Initial Ceding Commission Reserves,
Retrocedant shall promptly pay to the account of Retrocessionaire the difference
plus interest on such amount at the Applicable Rate from and including the
Effective Date to and including the date of such payment. In the event the Final
Section A Premium for any individual Class of Business is less than the Initial
Section A Premium for such individual Class of Business or the Final Ceding
Commission Reserves are greater than the Initial Ceding Commission Reserves,
Retrocessionaire shall promptly pay to the account of Retrocedant the difference
plus interest on such amount at the Applicable Rate (as defined below) from and
including the Effective Date to and including the date of such payment. "Class
of Business" shall be defined as each individual class or line of business as
delineated by the Retrocedant as of the date hereof as set forth on Exhibit A-1.

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

     (d)  Notwithstanding the foregoing, the parties agree that all gross
estimated premiums written prior to the Effective Date and earned but not yet
billed, net of applicable ceding commission and retrocession premium (net of
retrocession commissions) ("EBUB", and also referred to as "estimated premiums
receivable" or

                                       -5-
<Page>

"EBNR" or "earned but unbilled") as of the Effective Time and relating to the
Reinsurance Contracts, as determined on or before _____, 2002, as set forth in
Exhibit C, in a manner consistent with Retrocedant's customary practices and
procedures and as submitted to The St. Paul, shall be allocated to Retrocedant.
All payments received after the Effective Time by Retrocedant or
Retrocessionaire in respect of EBUB as of the Effective Time shall be retained
by Retrocedant or held on trust for and paid by Retrocessionaire to or to the
order of Retrocedant, and all rights to collect such amounts shall be retained
by or transferred to Retrocedant. Any changes made on or after the Effective
Time as to the estimated amount of EBUB as of the Effective Time shall be for
the account of Retrocessionaire and shall not affect the amount retained by
Retrocedant. The parties agree that as of the first anniversary of the date
hereof, Retrocessionaire shall pay to Retrocedant the difference, if any,
between the amount of EBUB as of the Effective Time and the aggregate amount
subsequently billed and paid to and/or retained by Retrocedant prior to that
date with respect to EBUB as of the Effective Time, it being understood that
Retrocedant shall bear all risk of non-payment and non-collectibility with
respect to premiums written and unearned as of the Effective Date and
subsequently billed. All amounts, if any, in respect of EBUB which are in excess
of EBUB as of the Effective Time, calculated pursuant to the first sentence of
this Section 4.01(d), shall be for the account of Retrocessionaire and no such
amounts shall be retained by or payable to Retrocedant.

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

     (a)  On the Effective Date, in respect of the Section B (Prospective)
Coverage Period, Retrocedant shall transfer to Retrocessionaire an aggregate
amount representing the sum of all amounts related and specifically allocated to
each individual Class of Business (the "INITIAL SECTION B PREMIUM") equal to the
carrying value on the books of Retrocedant as of September 30, 2002, of one
hundred percent (100%) of the unearned premium reserves, net of unearned ceding
commissions and net of Inuring Retrocession premiums as provided for in Section
7.04 and as allocated pursuant to Exhibit E, in each case relating to the
Reinsurance Contract, determined in accordance with statutory accounting
principles on a basis consistent in all material respects with the methods,
principles, practices and policies employed in the preparation and presentation
of Retrocedant's annual statutory financial statement as of December 31, 2001 as
filed with the Minnesota Department of Commerce (consistent with the methods,
principles, practices and policies applied at June 30, 2002) and as submitted to
The St. Paul.

     (b)  On the 90th day following the Effective Date (or if such 90th day is
not a Business Day, the first Business Day following such 90th day), Retrocedant
shall prepare and deliver to Retrocessionaire an accounting (the "PROPOSED
PREMIUM RESERVE ACCOUNTING", together with the Proposed Loss Reserve Accounting,
the "PROPOSED ACCOUNTING") of all unearned premium reserves relating to the
Reinsurance Contracts, as of the Effective Date, determined in accordance with
statutory accounting principles on a basis consistent in all material respects
with the methods, principles, practices and policies employed in the preparation
and presentation of Retrocedant's annual statutory financial statement as of
December 31, 2001 as filed with the Minnesota Department of Commerce (consistent
with the methods, principles, practices and policies applied at June

                                       -6-
<Page>

30, 2002) and as submitted to The St. Paul, relating to the Reinsurance
Contracts, net of the unearned ceding commission and net of Inuring Retrocession
premiums as provided for in Section 7.04 and as allocated pursuant to Exhibit E
(the "FINAL SECTION B PREMIUM"). In the event the Final Section B Premium for
any individual Class of Business is greater than the Initial Section B Premium
for such individual Class of Business, Retrocedant shall promptly pay to the
account of Retrocessionaire the difference plus interest on such amount at the
Applicable Rate from and including the Effective Date to and including the date
of such payment. In the event the Initial Section B Premium for any individual
Class of Business is greater than the Final Section B Premium for such
individual Class of Business, Retrocessionaire shall promptly pay to the account
of Retrocedant the difference plus interest on such amount at the Applicable
Rate from and including the Effective Date to and including the date of such
payment.

     (c)  Retrocedant shall transfer to Retrocessionaire with respect to all
Reinsurance Contract, one hundred percent (100%) of all gross premiums written
on or after the Effective Time, net of premium returns, allowances and
cancellations and less any applicable Retrocedant Ceding Commission and Inuring
Retrocession premiums as provided for in Section 7.04 and as allocated pursuant
to Exhibit E.

     (d)  Retrocedant shall retain all gross premiums attributable to losses
arising from the Excluded Losses, including but not limited to adjusted
premiums, portions of reinstatement premiums and other adjustments attributable
to such losses.

     SECTION 4.03   DISPUTE RESOLUTION.

     (a)  After receipt of the Proposed Accounting, together with the work
papers used in preparation thereof, Retrocessionaire shall have 30 days (the
"REVIEW PERIOD") to review such Proposed Accounting. Unless Retrocessionaire
delivers written notice to Retrocedant on or prior to the 30th day of the Review
Period stating that it has material objections to the Proposed Accounting for
one or more Classes of Business or the Final Ceding Commission Reserves,
Retrocessionaire shall be deemed to have accepted and agreed to the Proposed
Accounting. If Retrocessionaire so notifies Retrocedant of any material
objection(s) to the Proposed Accounting, the parties shall in good faith attempt
to resolve, within 30 days (or such longer period as the parties may agree)
following such notice (the "RESOLUTION PERIOD"), their differences with respect
to such material objections related to any Class of Business so identified.
Retrocedant and Retrocessionaire agree that only those Classes of Business (or
the Final Ceding Commission Reserves, as applicable) to which such notification
relates shall be subject to adjustment, and any resolution by them as to any
disputed amounts, as evidenced by a writing signed by both parties, shall be
final, binding and conclusive.

     (b)  In the event that Retrocessionaire believes that Loss Reserves for a
Class of Business need to be increased beyond the amount implied by the
algorithm set forth in Exhibit B, or the Final Ceding Commission Reserves need
to be reduced, Retrocessionaire and Retrocedant will endeavor to agree on an
appropriate adjustment. If the two parties cannot agree on an adjustment,
Retrocedant may elect to (i) retain the

                                       -7-
<Page>

liabilities and the associated Loss Reserves for the subject Class of Business
and all unearned premium and Retrocessionaire shall transfer to Retrocedant all
Initial Sections A Premium and Initial Section B Premium paid by Retrocedant for
the subject Class of Business, plus interest on the average [daily] amount at
the Applicable Rate from the Effective Date to the date of such transfer, or
(ii) extend the time period for adjusting the reserve to as much as 36 months or
(iii) choose to arbitrate according to Section 4.03(b), it being understood that
arbitration according to Section 4.03(b) shall be the sole remedy for disputes
regarding the Final Ceding Commission Reserves. In the event that Retrocedant
chooses to extend the time period for adjusting the reserves for a Class of
Business, Retrocedant retains the exposure to adverse loss development and
Retrocessionaire will suffer no exposure to paid losses in excess of the Initial
Section A Premium and Initial Section B Premium paid by Retrocedant. At the end
of the extended period, any continued disagreement between Retrocedant and
Retrocessionaire would be submitted to arbitration as set forth in Section
4.03(b) hereto.

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

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

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

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

                                       -8-
<Page>

     (g)  Once the Proposed Accounting has been finalized in accordance with the
above process, the Final Section A Premium and the Final Section B Premium
amounts shall be as set forth in the Proposed Accounting, as determined by the
Arbiters, if applicable (the "ARBITRATED FINAL SECTION A PREMIUM" and/or
"ARBITRATED FINAL SECTION B PREMIUM", as the case may be). In the event the sum
of the Arbitrated Final Section A Premium and the Arbitrated Final Section B
Premium amounts (determined in accordance with the first sentence of this
Section 4.03(f)) is greater than the amount paid by Retrocedant to
Retrocessionaire on the Effective Date, Retrocedant shall promptly pay to the
account of Retrocessionaire the difference plus interest on such amount at the
Applicable Rate from and including the Effective Date to and including the date
of such payment. In the event the sum of such amounts (determined in accordance
with the first sentence of this Section 4.03(f)) is lower than the amount paid
by Retrocedant to Retrocessionaire on the Effective Date, Retrocessionaire shall
promptly pay to the account of Retrocedant the difference plus interest on such
amount at the Applicable Rate from the Effective Date to the date of such
payment.

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

                                    ARTICLE V

                          RETROCEDANT CEDING COMMISSION

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

                                   ARTICLE VI

                               ORIGINAL CONDITIONS

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

                                       -9-
<Page>

                                   ARTICLE VII

                              INURING RETROCESSIONS

     SECTION 7.01   ALLOCATION TO RETROCESSIONAIRE. Retrocedant agrees that the
retrocession contracts purchased by the reinsurance division of The St. Paul
("ST. PAUL RE") from third party retrocessionaires ("THIRD PARTY
RETROCESSIONAIRES") on behalf of Retrocedant prior to the Effective Time that
are listed on Exhibit C hereto shall inure to the benefit of Retrocessionaire to
the extent of liabilities covered under this Agreement ("INURING
RETROCESSIONS"), subject to the agreed allocations in Exhibits D, E and F. It is
further understood and agreed that facultative reinsurance not listed on Exhibit
C but relating to the Reinsurance Contract shall also inure to the benefit of
Retrocessionaire to the extent of liabilities covered under this Agreement and
shall be considered Insuring Retrocessions under this Agreement.

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

     SECTION 7.03   INURING RETROCESSIONS CLAIMS.

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

     (b)  In the event claims of Retrocedant and Retrocessionaire aggregate in
excess of the applicable limit under an Inuring Retrocession, all limits
applicable to either

                                      -10-
<Page>

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

     SECTION 7.04   INITIAL CONSIDERATION. To the extent not already reflected
in the calculation of Final Section B Premium, as part of the Section B
(Prospective) Coverage Period premiums described in Section 4.02,
Retrocessionaire shall reimburse Retrocedant for one hundred percent (100%) of
any and all unearned premiums paid by Retrocedant under such Inuring
Retrocessions net of any applicable unearned ceding commissions paid to
Retrocedant thereunder.

     SECTION 7.05   ADDITIONAL CONSIDERATION. Retrocessionaire agrees to pay
under the Inuring Retrocessions all future premiums Retrocedant is obligated to
pay pursuant to the terms of the Inuring Retrocessions to the extent that such
premiums are allocable to Retrocessionaire in the manner set forth in Exhibit E
hereto, and not otherwise paid by Retrocessionaire and to indemnify Retrocedant
for all such premiums paid directly by Retrocedant, net of any ceding
commissions and similar amounts paid by Third Party Retrocessionaires to
Retrocedant.

     SECTION 7.06   TERMINATION OR COMMUTATION OF INURING RETROCESSIONS.

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

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

                                  ARTICLE VIII

                 LOSS AND LOSS EXPENSE; SALVAGE AND SUBROGATION
                               FOLLOW THE FORTUNES

     SECTION 8.01   (a)  Retrocessionaire shall be liable for one hundred
percent (100%) of all future loss, loss adjustment expenses, incurred but not
reported losses and other payment obligations that arise (including ceding
commissions, as and to the extent determined in Article IV) under the
Reinsurance Contract on and after January 1, 2002 and are payable as of or after
the Effective Time, and shall reimburse Retrocedant for any losses, loss
adjustment expenses and other payment obligations paid by Retrocedant following
the Effective Time in respect of the Reinsurance Contract, net of any recoveries
received by Retrocedant with respect thereto, including recoveries under Inuring
Retrocessions. Retrocessionaire shall have the right to all salvage and

                                      -11-
<Page>

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

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

                                   ARTICLE IX

                          EXTRACONTRACTUAL OBLIGATIONS

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

                                    ARTICLE X

                     ADMINISTRATION OF REINSURANCE CONTRACT

     SECTION 10.01  ADMINISTRATION

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

                                      -12-
<Page>

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

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

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

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

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

                                   ARTICLE XI

                             REPORTS AND REMITTANCES

     SECTION 11.01  REPORT FROM RETROCEDANT. Within thirty days following the
end of each month, Retrocedant shall provide Retrocessionaire with a summary
statement

                                      -13-
<Page>

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

     SECTION 11.02  REMITTANCES. Within two Business Days after delivery of each
monthly report pursuant to Section 11.01, Retrocedant and Retrocessionaire shall
settle all amounts then due under this Agreement for that month. It is agreed
that Retrocedant shall retain all premiums received arising from all business
written for which the first day of the original cedant's account period occurs
prior to the Effective Date until such time as such aggregate amount of such
premiums received equals the net amount to be retained by Retrocedant pursuant
to Section 4.01(d) and 4.02(b) herein, after which time, such premiums shall be
remitted by Retrocedant to Retrocessionaire.

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

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

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

                                   ARTICLE XII

                             MAINTENANCE OF LICENSES

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

                                      -14-
<Page>

                                  ARTICLE XIII

                                ACCESS TO RECORDS

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

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

                                   ARTICLE XIV

                                 INDEMNIFICATION

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

                                      -15-
<Page>

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

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

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

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

                                      -16-
<Page>

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

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

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

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

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

                                      -17-
<Page>

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

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

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

                                   ARTICLE XV

                                   ARBITRATION

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

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

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

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

     (e)  Within 30 days after notice of appointment of all arbitrators, the
Panel shall meet and determine timely periods for briefs, discovery procedures
and schedules

                                      -18-
<Page>

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

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

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

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

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

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

                                   ARTICLE XVI

                                   INSOLVENCY

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

     (b)  It is agreed, however, that the liquidator, receiver, conservator or
statutory successor of Retrocedant shall give written notice to Retrocessionaire
of the pendency of a claim against Retrocedant indicating the Reinsurance
Contract, which claim would involve a possible liability on the part of
Retrocessionaire within a reasonable time after such claim is filed in the
conservation or liquidation proceeding or in the receivership,

                                      -19-
<Page>

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

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

                                  ARTICLE XVII

                                     OFFSET

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

                                  ARTICLE XVIII

                              ERRORS AND OMISSIONS

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

                                   ARTICLE XIX

                        CREDIT FOR REINSURANCE; SECURITY

     SECTION 19.01  CREDIT FOR REINSURANCE. Retrocessionaire shall take all
actions reasonably necessary, if any, to permit Retrocedant to obtain full
financial statement credit in all applicable U.S. jurisdictions for all
liabilities assumed by the Retrocessionaire pursuant to this Agreement,
including but not limited to loss and loss adjustment expense reserves, unearned
premium reserves, reserves for incurred but not reported losses, allocated loss
adjustment expenses and ceding commissions, and to

                                      -20-
<Page>

provide the security required for such purpose, in a form reasonably acceptable
to Retrocedant. Any reserves required by the foregoing in no event shall be less
than the amounts required under the law of the jurisdiction having regulatory
authority with respect to the establishment of reserves relating to the
Reinsurance Contract. For purposes of this Article XIX, such "actions reasonably
necessary" may include, without limitation, the furnishing of a letter of credit
or the establishment of a custodial or trust account, as permitted under
applicable law, to secure the payment of the amounts due the Retrocedant under
this Agreement.

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

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

                                   ARTICLE XX

                            MISCELLANEOUS PROVISIONS

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

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

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

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

                                      -21-
<Page>

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

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

     If to Retrocedant:

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

     If to Retrocessionaire:

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

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

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

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

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

                                      -22-
<Page>

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

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

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

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

                                      -23-
<Page>

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

                                             ST. PAUL FIRE AND MARINE
                                             INSURANCE COMPANY

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

                                             PLATINUM UNDERWRITERS
                                             REINSURANCE, INC.

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

                                      -24-
<Page>

                                   EXHIBIT A-1

                              REINSURANCE CONTRACT

Section 3 of the Whole Account Excess of Loss Reinsurance Agreement with
Transatlantic Reinsurance Corporation, for the period from September 12, 1999
through December 31, 2002. Non-traditional Class D.

                                       A-1
<Page>

                                   EXHIBIT A-2

                       LOSS RESERVES BY CLASS OF BUSINESS

                               As of June 30, 2002

<Table>
<Caption>
                                                                   Deposit         Profit
                                               IBNR                Liabilities     Commissions
                                               ----                -----------     -----------
<S>                   <C>                      <C>                  <C>            <C>
New York & Vermont    Non-Traditional D                             2,000,000
</Table>

                                       A-2
<Page>

                                    EXHIBIT B

                                  LOSS RESERVES

Loss Reserves shall consist of loss and loss adjustment expense reserves,
including incurred but not reported loss and loss adjustment expense reserves as
of the Effective Time with respect to premium earned on the Reinsurance Contract
net of retrocessional recoverables under the Inuring Retrocessions. Loss
Reserves shall not include any loss and loss adjustment expense reserves or
ceding commission reserves relating to Excluded Losses. Aggregate Loss Reserves
as of June 30, 2002 are as set forth on Exhibit A-2.

             METHODOLOGY FOR CALCULATION OF FINAL SECTION A PREMIUM

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

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

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

          CALCULATION METHODOLOGY FOR EARNED BUT NOT YET BILLED PREMIUM

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

                                       B-1
<Page>

                                    EXHIBIT C

                              INURING RETROCESSIONS

                                       C-1
<Page>

FER 17/10/02

Platinum Re_Inuring Reinsurance 17_10_02.xls

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

        AS AT 17/10/02

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

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

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

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

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

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

    3)     UK/Europe Cat. XL Quota    GBP 3m - GBP 3.5m        Montpelier Re        100%
           Share Treaty                                        - 100%

    4)     Japan Cat. XL Surplus      USD 1.2m                 PX Re - 100%         100%
           Treaty
</Table>

                                       C-2
<Page>

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

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

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

<Caption>
    <S>    <C>                        <C>                      <C>                  <C>
    5)     Casualty Clash Quota        $  4,200,000            Auto-Owners          100%
           Share                                               Ins. Co.

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

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

                                       C-3
<Page>

FER 17/10/02

Platinum Re_Inuring Reinsurance 17_10_02.xls

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

        AS AT 17/10/02

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

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

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

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

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

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

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

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

                                       C-4
<Page>

<Table>
    <S>    <C>                         <C>           <C>        <C>                  <C>               <C>                <C>
    2b)    International               7/11/01       7/10/02    Protects Europe      $   7,500,000     $ 15,000,000       1 @ 100%
           Property Cat. XL                                     Risk/Prorata/Cat.    L   5,000,000     L 10,000,000
                                                                XL business

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

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

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

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

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

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

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

                                       C-5
<Page>

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

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

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

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

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

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

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

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

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

    7)     Caribbean ILW XOL           $  3,450,000   23.00%        100%    Continental Casualty - 100%
</Table>

                                       C-6
<Page>

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

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

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

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

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

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

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

<Caption>
    <S>    <C>                         <C>            <C>           <C>     <C>
    8)     N.A. $10 Billion            $    500,000   20.00%        100%    Transatlantic Re - 100%
           ILW

    9)     N.A. $10 Billion            $    475,000   19.00%        100%    IPC Re Limited - 100%
           ILW

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

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

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

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

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

                                       C-7
<Page>

<Table>
    <S>    <C>                         <C>           <C>        <C>                 <C>                <C>              <C>
    14)    Workers'                    1/1/02        12/31/02   Covers Workers'     $   50,000,000     $ 75,000,000
           Compensation Cat.           1/1/03        12/31/05   Compensation        $   50,000,000     $ 75,000,000     Annual Agg.
           XOL (holborn)                                        treaty business                                          Of 50M

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

<Caption>
    <S>    <C>                         <C>            <C>           <C>     <C>
    14)    Workers'                    $ 10,000,000                 100%    Swiss Re - 81.25%
           Compensation Cat.                                                Hannover - 15%
           XOL (holborn)                                                    E & S Reins. - 3.75%

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

                                       C-8
<Page>

                                    EXHIBIT D

                            ALLOCATION OF RECOVERIES

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

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

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

                                       D-1
<Page>

                                    EXHIBIT E

                      ALLOCATION OF RETROCESSIONAL PREMIUMS

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

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

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

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

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

                                       E-1
<Page>

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

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

                                       E-2
<Page>

                                    EXHIBIT F

                              ALLOCATION OF LIMITS

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

                                       F-1
<Page>

                                    EXHIBIT G

                          FORM OF RETROCEDANT'S REPORT

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

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

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

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

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

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

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

                                       G-1
<Page>

                                    EXHIBIT H

                      ALLOCATION OF ADMINISTRATIVE EXPENSES

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

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

                                       H-1

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