EXHIBIT 10.20
ADDENDUM NO. 2
TO THE
QUOTA SHARE REINSURANCE AGREEMENT
DATED AS OF MARCH 27, 2003
(HEREINAFTER REFERRED TO AS THE "ORIGINAL AGREEMENT")
BETWEEN
PLATINUM RE (UK) LIMITED
(HEREINAFTER REFERRED TO AS THE "COMPANY")
AND
PLATINUM UNDERWRITERS BERMUDA, LTD
(HEREINAFTER REFERRED TO AS THE "REINSURER")
WHEREAS, the Reinsurer and the Company are parties to the Original Agreement.
NOW THEREFORE, effective from the Commencement of the Original Agreement, the
parties hereto hereby agree to amend the said agreement as follows:
Article 4 - PREMIUMS AND COMMISSIONS. The existing clause shall be deleted
in its entirety and replaced with the following:
"As premium for the reinsurance provided hereunder, the Retrocedant shall
retrocede to the Retrocessionaire fifty-five percent (55%) of the Gross
Net premium ceded to the Retrocedant under the Reinsurance Contracts.
The Retrocessionnaire shall pay a ceding commission equal to the sum of
(1) applicable ceding and other commissions, (2) brokerage, (3) taxes, and
(4) other expenses associated with underwriting the Reinsurance Contracts.
Other expenses associated with underwriting shall be limited to a maximum
of 10 percent (10%) of the Gross Net Premium ceded to the Retrocedant
under the Reinsurance Contracts.
Gross Net Premium is defined as the total sum of all premiums associated
with Reinsurance Contracts ceded to the Retrocedant, less: (1) return
premiums, and (2) ceded reinsurance premium."
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Article 8 - REPORTS AND REMITTANCES. The existing clause shall be deleted
in its entirety and replaced with the following:
"The retrocedant shall render separately, monthly statements of account,
in arrears, in respect of each year of account, showing the total of all
premiums, written, paid loss and loss adjustment expenses, allowances,
commissions, and underwriting expenses relevant to that month. Such
accounts shall be rendered, as soon as possible after the close of the
relevant month with the balance payable within 45 days after the end of
the respective month.
The retrocedant shall normally debit the retrocessionaire with their
proportionate share of paid losses and loss adjustment expenses in the
monthly accounts rendered. The retrocedant may, however, at their
discretion, request the retrocessionaire to make immediate payment for
their proportion of any settled loss in excess of (pound)2 million for any
one loss relating to this agreement; provided that the retrocessionaire
shall have the right to deduct from any such payment any sums due to the
retrocessionaire under this agreement for any agreement renewing or
replacing this agreement.
In addition, the Retrocedant will furnish the Retrocessionaire a quarterly
statement showing the unearned premium, the total reserves for outstanding
losses including loss adjustment expense, a breakdown for paid and
outstanding catastrophe losses and loss adjustment expense, and such other
information as may be required by the Retrocessionaire for completion of
its annual statements or other filings."
All other terms and conditions of the Original Agreement remain unchanged.
In Witness Whereof, the parties hereto have caused this Addendum No.2 to be
executed by their duly authorized representatives.
Platinum Underwriters Bermuda, Ltd.
By: /s/ Xxxxxxxx Xxxxxxxx
-------------------------------
Name: Xxxxxxxx Xxxxxxxx
Title: Senior Vice President
Platinum Re (UK) Limited
By: /s/ Xxx Xxxxxx
-------------------------------
Name: Xxx Xxxxxx
Title: Senior Underwriter
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