Correcting Cash Dividends Per Common Share line in Consolidated Statements of Income.

NEW YORK--(BUSINESS WIRE)--October 19, 1995--In BW1087, Capital Re Corporation reports record third quarter net income of $11.4 million or $0.77 per share; correcting Cash Dividends Per Common Share line in Consolidated Statement of Income, should read $0.05, $0.05, $0.15, $0.15 (sted $0.77, $0.64, $2.27, $1.97). The corrected table follows.

                   Capital Re Corp. and Subsidiaries
                   Consolidated Statements of Income
            (Dollars in thousands except per share amounts)

                          Three months ended     Nine months ended
                               Sept. 30,            Sept. 30,
                             (Unaudited)           (Unaudited)
                            1995    1994          1995      1994

Revenues:
  Gross premiums
    written               $23,977    $22,003    $69,368   $79,089
  Ceded premiums            3,188        875      7,529    12,791
  Net premiums
    written                20,789     21,128     61,839    66,298
  Increase in
    deferred
    premium revenue        (7,467)    (8,984)   (18,004)  (20,140)
  Net premiums earned
    (net of ceded earned
    premium of $2,109 and
    $2,720 in three months
    1995 and 1994; $5,859
    and $8,008 in nine
    months 1995 and 1994) 13,322     12,144      43,835    46,158
Net investment income     11,687     10,292      34,448    28,926
Net realized gains/(losses) (141)       248         120     1,917
Other income                  35        340         173       488
    Total revenue        $24,903    $23,024     $78,576   $77,489

Expenses:

Loss and loss adjustment
  expenses (net of ceded
  loss and loss
  adjustment expenses of
  $1,241 and $2,275 in
  three months 1995 and
  1994; $2,242 and $2,621
  in nine months 1995 and
  1994)                     $252       $160      $1,548      $534
Acquisition costs          8,431      6,541      23,015    27,098
Increase in deferred
  acquisition costs       (4,281)    (2,564)     (8,005)  (10,608)
Profit commission expense     48      1,038         802     2,875
Other operating expenses   2,031      1,959       7,134     7,480
Foreign exchange (gain/
  loss)                      157         --         157        --
Interest expense           1,732      1,646       5,173     4,936
Minority interest in
  subsidiary               1,434      1,434       4,303     3,952
     Total expenses       $9,804    $10,214     $34,127   $36,267

   Income before
   provision for
   federal income taxes  $15,099    $12,810     $44,449   $41,222

Provision for federal
  income taxes
     Current               2,240      1,892       6,212     5,639
     Deferred              1,506      1,335       4,543     5,043
Total provision for
  federal income taxes    $3,746     $3,227     $10,755   $10,682

Net income               $11,353     $9,583     $33,694   $30,540

Earnings per common
  share                    $0.77      $0.65       $2.28     $2.06

Cash dividends per
  common share             $0.05      $0.05       $0.15     $0.15

Weighted average number
  of common shares
  outstanding         14,784,055 14,796,882  14,783,720 14,834,613

CONTACT: Capital Re Corporation

David A. Buzen

Catherine C. Bailey 

212/974-0100