American Re Capital Redeems Its 8.5% Cumulative Quarterly Income Preferred Securities Due 2025; American Re Corporation To Deregister 7.45% Senior Notes Due 2026.

Business Editors

PRINCETON, N.J.--(BUSINESS WIRE)--March 15, 2002

American Re Capital, a trust formed under the laws of the State of Delaware (the "Trust"), redeemed on February 21, 2002, all of the $237.5 million outstanding aggregate amount of its 8.5% Cumulative Quarterly Income Preferred Securities due September 30, 2025 ("QUIPS"), at par plus accrued and unpaid interest through the date of redemption.

The QUIPS, which were listed on the New York Stock Exchange under the symbol ARN.A, were delisted on February 22, 2002.

American Re Corporation, in accordance with the rules and regulations of the Securities Exchange Act of 1934, will be deregistering its 7.45% Senior Notes due 2026. Pursuant to the provisions of the Indenture which governs the Notes, the Company will furnish to the Holders of the Notes and the Trustee all quarterly and annual financial information required thereunder and will make such information available to all analysts and prospective investors who request it in writing.

Requests should be made to the Investor Relations Department, American Re Corporation, 555 College Road East, Princeton, New Jersey 08543-5241.

American Re, a member of the Munich Re Group, is one of the leading writers of reinsurance in the United States. Through its subsidiaries, it provides treaty and facultative reinsurance, insurance, and related services to insurance companies, other large businesses, government agencies, pools and other self-insurers. It has received the highest insurance ratings from A.M. Best Company, Moody's and Standard & Poor's. 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.

Safe Harbor Disclosure

The Company has disclosed certain forward-looking statements concerning its operations, economic performance and financial condition, including in particular the impact of the terrorist attacks of September 11, 2001, on the Company's financial condition and the likelihood of the Company's success in developing, maintaining and expanding its business and the risks related thereto. These statements are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company, and reflect future business decisions that are subject to change. Some of these assumptions inevitably will not materialize, and unanticipated events will occur which may cause the Company's results to differ materially from those expressed in any forward-looking statement made by or on behalf of the Company. Such statements may include, but are not limited to, the identification and development of losses resulting from the terrorist attacks of September 11, 2001, the payment of related losses by our reinsurers, potential government intervention and various other related factors, financial projections and plans for future operations, capital plans, estimates concerning the effects of litigation or other disputes, adverse state or federal legislation or regulation, adverse publicity or news coverage or changes in general economic factors as well as the assumptions for any of the foregoing and are generally expressed with words, such as "believes," "estimates," "expects," "anticipates," "plans," "projects," "forecasts," "goals," "could have," "may have" and similar expressions. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.