American Re Corporation Announces Record Earnings

Business Wire, March 5, 2004

Business Editors

PRINCETON, N.J.--(BUSINESS WIRE)--March 5, 2004

American Re Corporation announces record earnings for 2003 driven by strong underwriting performance and robust investment income. The Company reported an accident year combined ratio of 94.5% for its core business units, compared to 101.6% in 2002.

Strong operating performance in 2003 resulted in GAAP pre-tax income of $503.1 million. Included in income was an important additional pre-tax provision for losses from prior accident years of $368 million, resulting in a GAAP combined ratio of 102.6%. Despite the charge, the statutory surplus of the Company's reinsurance and insurance subsidiaries increased by more than $1 billion to $3.34 billion.

Commenting on these results, John Phelan, Chairman said, "American Re is pleased that it performed according to plan in 2003. The Company's balance sheet is stronger than ever. Provision for prior year losses has been significantly strengthened. American Re continues to offer its clients top security in addition to unparalleled expertise and genuine value added services."

Further details of American Re's performance will be provided during Munich Re's publication of the provisional figures for its 2003 financial statements on March 17th.

American Re Corporation, a member of the Munich Re Group, is one of the leading providers of reinsurance in the United States. Through its subsidiaries, it writes treaty and facultative reinsurance, insurance, and provides related services to insurance companies, other large businesses, government agencies, pools and other self-insurers. The Munich Re Group, whose business also includes primary insurance and asset management, has a preeminent position in the global reinsurance industry. It is headed by Munich Reinsurance Company of Munich, Germany, and includes reinsurance subsidiaries, branches, service companies and liaison offices in more than 60 locations worldwide, serving insurers in more than 150 countries.