Platinum, RenRe to Sell $220 Worth of Common Shares

November 29, 2005

Bermuda-based Platinum Underwriters Holdings, Ltd. announced that it has commenced a public offering of approximately $220 million worth of common shares. In a separate bulletin RenaissanceRe announced that it will sell its 3,960,000 common shares in Platinum, valued at around $120 million, as part of the offering. The sale represents RenRe’s entire stake in Platinum.

Platinum noted: “Merrill Lynch & Co. is acting as the sole book-running manager and Goldman, Sachs & Co., Citigroup Global Markets, Inc., Wachovia Capital Markets, LLC and Dowling & Partners Securities, LLC are acting as co-managers for the common shares offering.

“In addition, the Company also announced that it has concurrently commenced a public offering of approximately $150 million of Series A mandatory convertible preferred shares. The underwriters have an option to purchase from the Company additional Series A mandatory convertible preferred shares to cover over-allotments, if any. We intend to apply to have the Series A mandatory convertible preferred shares listed on the New York Stock Exchange.”

RenRe’s bulletin stated that it had “purchased its common shares of Platinum on November 1, 2002 at a price of $22.50 per share through a private placement transaction. In addition, RenaissanceRe received at that time a 10-year warrant to purchase up to 2.5 million additional common shares of Platinum for $27.00 per share (which warrant may only be exercised on a net share basis and, based on the average closing price per Platinum common share for the 10-day period ending on November 22, 2005, was exercisable for 278,000 common shares). The aggregate price for the shares and the warrant was $84.2 million.” Platinum’s shares closed on Monday, Nov. 28, at $29.40.

RenRe also noted that it currently “provides modeling and referral services to Platinum on a fee basis. After the sale of shares through the common equity offering, RenaissanceRe will continue to own the warrant to purchase Platinum shares and expects to maintain its ongoing business relationship with Platinum.”

Platinum said it “intends to use the net proceeds from the sale of its common shares and Series A mandatory convertible preferred shares to make contributions to the capital and surplus of its reinsurance operating subsidiaries and for general corporate purposes.”

However, Platinum also noted that it “will not receive any proceeds from the sale of common shares by the Selling Shareholder,” i.e. Ren Re, which could probably use the money. The company reported a third quarter net loss of $327.3 million – later reduced by $34.8 million to $292.5 million, and could well post a loss for the entire year.

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