A.M. Best Gives American Re its Highest Rating.

PRINCETON, N.J.--(BUSINESS WIRE)--July 21, 1997--American Re announced that A. M. Best Company has upgraded its rating of the American Re Corporation Group to A++ (Superior), its highest rating category. Previously it had been rated A+. The group consists of American Re-Insurance Company, the nation's second-largest writer of property-casualty reinsurance, and American Alternative Insurance Corporation, a primary property-casualty insurance company licensed in all 50 states, which assists clients of American Re in meeting their risk management and insurance/reinsurance needs.

A.M. Best, one of the nation's leading rating services specializing in insurance and reinsurance companies, said in its most recent Ratings Monitor, "This rating action follows the successful merger of Munich Re's U.S. operations into American Re-Insurance Company, which has established American Re as the second-largest U.S. reinsurer. American Re's upgrade reflects the substantial benefits it derives from the combination of these two long-standing franchises, including the significantly reduced financial leverage at the American Re Corp. holding company level, which is the result of its bolstered capital position and its favorable debt restructuring. Enhanced financial flexibility is afforded by Munich Re, Germany, whose financial strength is exceptional. In addition, the combined group will benefit from increased market penetration and enhanced distribution opportunities as an integral member of the world's largest reinsurance organization. Finally, the upgrade reflects American Re's strong business persistency throughout the acquisition and integration process, despite increased competition, stemming from their dominant market positions, strong client relations, direct distribution, and whole account approach."

Edward J. Noonan, President and Chief Executive Officer of American Re, said, "With the merger of Munich American Reinsurance Company and Munich Re's U.S. branch into American Re-Insurance Company earlier this month, American Re now provides all of our clients with the combined financial and technical resources of a single organization, which carries the highest ratings available from A.M. Best, Standard & Poor's and Moody's. We are the best-positioned reinsurer to help our clients get where they want to go."

American Re, a member of the Munich Re Group, is a direct writer of treaty and facultative reinsurance and provider of related services. The Munich Re Group is the leading reinsurance group in the world. 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.

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