American Re Corporation Reports First Quarter Results.PRINCETON, N.J. -- American Re Corporation reported first quarter 2005 GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). net income of $88.5 million, compared to $80.9 million in the first quarter of 2004. At March 31, 2005, the statutory surplus of the Company's reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. and insurance subsidiaries was $3.49 billion, representing a 3.0% increase in statutory surplus from $3.39 billion at December 31, 2004. For the first three months of 2005, gross written premiums were $954.1 million, a 2.2% decrease from $975.3 million for the first quarter of 2004. The Company's GAAP combined ratio for the first quarter was 90.8%, compared to 102.0% in 2004. The accident year combined ratio for the Company's core business units was 95.4% for 2005, compared to 102.8% for the first quarter of 2004. The core results exclude non-core business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets and corporate retrocessions. Commenting on American Re's first quarter results, Chairman John Phelan said, "American Re's favorable first quarter results and continued surplus growth are very encouraging. American Re is committed to maintaining disciplined underwriting throughout the cycle in the best interests of all stakeholders Stakeholders All parties that have an interest, financial or otherwise, in a firm-stockholders, creditors, bondholders, employees, customers, management, the community, and the government. ." American Re Corporation, a member of the Munich Re Munich Re AG, in German Münchener Rück AG (ISIN: DE0008430026), is the world's second largest reinsurance company with over 5,000 customers in 160 countries and has its headquarters in Munich, Germany. Group, is one of the leading providers of reinsurance in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . 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. |
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