A.M. Best Affirms Ratings of Platinum Underwriters Holdings, Ltd. and Its Reinsurance Subsidiaries

OLDWICK, N.J.--(Business Wire)--
A.M. Best Co. has affirmed the financial strength rating (FSR) of A (Excellent)
and issuer credit ratings (ICR) of "a" of Platinum Underwriters Group (the
group) (Bermuda) and its members. A.M. Best also has affirmed the ICR of "bbb"
of Platinum Underwriters Holdings, Ltd. (Platinum) (Bermuda) [NYSE: PTP] and
debt ratings of Platinumand Platinum Underwriters Finance, Inc. The outlook for
all ratings is stable. (See below for a detailed list of the companies and
ratings.)

The ratings reflect the group`s excellent capitalization, strong operating
results and established business position as a global, multi-line provider of
reinsurance coverages. The ratings also reflect the group`s good financial
flexibility, solid liquidity and sound enterprise risk management capabilities.

Somewhat offsetting these strengths are the challenges that have occurred in the
global reinsurance market including rate softening and increased competition in
recent years and the impact of the capital market crisis on total return
measures. However, premium rate trends have improved as of January 1, 2009,
reflecting the reduced capacity of the reinsurance markets due to losses
reported in 2008.

The group has generated very strong underwriting results over the most recent
five-year period with a five-year average combined ratio of 93.5%. From an
earnings perspective, net investment income continued to contribute to the
bottom line due to the group`s growing invested asset base and sound operating
cash flow measures.

Despite challenges related to natural catastrophes and investment market
turmoil, Platinum generated a healthy 2008 earnings result with net income of
$226 million, largely driven by favorable loss reserve development. The group
monitors its exposures to catastrophe losses through several modeling techniques
and limits the amount of capital exposed based on the modeling of a 1 in 250
year per occurrence event.

Platinum maintains conservative financial leverage measures as total
debt-to-total capital was approximately 12.8% at year-end 2008 with strong
interest coverage measures. Additionally, Platinum`s asset allocation is
conservative, with the vast majority held in highly rated fixed-income holdings
with diversification by industry sector and issuer.

The FSR of A (Excellent) and ICRs of "a" have been affirmed for Platinum
Underwriters Group and its following members:

* Platinum Underwriters Reinsurance, Inc.
* Platinum Re (UK) Limited
* Platinum Underwriters Bermuda, Ltd.

The ICR of "bbb" has been affirmed for Platinum Underwriters Holdings, Ltd.

The following debt ratings have been affirmed:

Platinum Underwriters Finance, Inc.-
-- "bbb" on $250 million 7.50% senior unsecured notes, due 2017

The following indicative ratings available under the shelf registration have been affirmed:

Platinum Underwriters Holdings, Ltd.-
-- "bbb" on senior unsecured debt
-- "bbb-" on subordinated debt
-- "bb+" on preferred stock

For Best`s Credit Ratings, an overview of the rating process and rating
methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any
additional methodologies and factors, which may have been considered, can be
found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating
organization dedicated to serving the financial and health care service
industries, including insurance companies, banks, hospitals and health care
system providers. For more information, visit www.ambest.com.

A.M. Best Co.
Analysts
Devin Inskeep, 908-439-2200, ext. 5449
devin.inskeep@ambest.com
or
Robert DeRose, 908-439-2200, ext. 5453
robert.derose@ambest.com
or
Public Relations
Jim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
rachelle.morrow@ambest.com

Copyright Business Wire 2009