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TRANSATLANTIC HOLDINGS, INC. ANNOUNCES RECORD NET INCOME OF $70.5 MILLION FOR 1991

 TRANSATLANTIC HOLDINGS, INC. ANNOUNCES
 RECORD NET INCOME OF $70.5 MILLION FOR 1991
 NEW YORK, Feb. 27 /PRNewswire/ -- Transatlantic Holdings, Inc. (NYSE: TRH) today reported record net income of $70.5 million, or $3.09 per common share, for the year ended December 31, 1991, an increase of 13.9 percent over the $61.9 million, or $2.71 per common share, reported in 1990. In the fourth quarter of 1991, net income increased 7.9 percent to $18.9 million, or $0.83 per common share, compared with $17.5 million, or $0.76 per common share, in the same period of 1990.
 Income before income taxes totalled $84.1 million for the year 1991 versus $75.8 million for 1990, an increase of 10.9 percent. In the fourth quarter of 1991, income before income taxes was $21.1 million compared to $21.2 million recorded in the same 1990 period, a decrease of 0.6 percent.
 The "fresh start" tax benefit reduced the provision for income taxes by $1.5 million and $1.7 million in 1991 and 1990, respectively. In the fourth quarter of 1991, the benefit amounted to $137,000 as compared to $497,000 in the same prior year period.
 At December 31, 1991, TRH's consolidated assets and stockholders' equity were $2.2 billion and $499.6 million, respectively, representing increases of $210.2 million and $78.1 million, respectively, for the year.
 Loss and loss adjustment expense reserves of $1.2 billion increased $42.1 million in the fourth quarter of 1991, bringing the increase in loss and loss adjustment expense reserves to $176.9 million for the 1991 year. Such reserves are not reduced by discounting. The market value of the fixed income portfolio exceeded the carrying value of $1.6 billion by $103.5 million. The Company has a conservative investment portfolio which consists primarily of diversified and liquid taxable bonds and tax-exempt municipal bonds as well as an equity portfolio emphasizing quality growth companies. There are no "junk" bonds or real estate investments in our portfolio.
 Net premiums written for the year 1991 increased 0.1 percent to $483.7 million from $483.2 million in 1990. In the fourth quarter of 1991, net premiums written decreased 5.3 percent to $120.9 million from $127.6 million in last year's fourth quarter.
 The combined ratio was 107.6 for the year compared with 105.7 for 1990. The loss ratios were 81.4 and 79.8 in 1991 and 1990, respectively. The underwriting expense ratio for 1991 was 26.2 compared with 25.9 for 1990. For the fourth quarter of 1991, the combined ratio was 108.9 compared with 105.9 in the same prior year period. The loss ratio was 80.3 in the fourth quarter of 1991 compared with 78.8 in the same period of 1990. The fourth quarter underwriting expense ratios for 1991 and 1990 were 28.6 and 27.1, respectively.
 Net investment income rose 17.1 percent to $121.3 million for the year 1991 and 13.4 percent to $31.7 million in the fourth quarter of 1991.
 Realized capital gains, net of income taxes, totalled $3.0 million for the 1991 year compared with $3.6 million in 1990. In the fourth quarters of 1991 and 1990, realized capital gains, net of income taxes, were $1.5 million.
 Other deductions totalled $1.8 million for the 1991 year. In 1990, other deductions totalled $1.9 million, principally representing expenses related to the Company's initial public offering of common stock.
 In the fourth quarter of 1991, the Board of Directors voted to increase the Company's quarterly dividend by 20 percent to $0.06 per common share to stockholders of record as of March 2, 1992, payable on March 16, 1992.
 Commenting on the year's results, Joseph V. Taranto, President, said, "These results were achieved in a property and casualty insurance market faced with intense price-based competition and a challenging economic environment. The year 1991 marked the second worst year on record for insured catastrophes. With our emphasis on casualty business and selective property underwriting, we expect our share of these losses to be insignificant.
 "Consistent with a strategy that demands strict underwriting discipline accompanied by strong actuarial support, our objective is to be selective in the risks we accept and focus on choice opportunities such as those within certain specialty casualty classes, rather than to generate indiscriminate premium volume. Internationally, our London office is taking an enhanced position in property catastrophe, marine and aviation lines consistent with improving market conditions.
 "Our strategy to invest in high quality stocks and bonds has served us well and is representative of our commitment to overall balance sheet discipline. We have avoided the asset quality problems that have plagued certain members of the insurance community and have benefited from the ensuing 'flight to quality.' We believe that our strong balance sheet and financial integrity are critical to the continued success of the Company. With our financial strength, international presence, business plans developed around market realities and our ability to quickly respond and take advantage of market change, Transatlantic is uniquely positioned to meet the challenges that lie ahead."
 Transatlantic Holdings, Inc. (TRH) is a leading U.S. international reinsurance organization with operations throughout the United States and foreign offices in London, Hong Kong, Tokyo and Toronto. With assets exceeding $2.2 billion, its subsidiaries, Transatlantic Reinsurance Company and Putnam Reinsurance Company, offer reinsurance capacity for a full range of products on both a treaty and facultative basis and have proven their strength, stability and service over the years. Our companies write all types of property and casualty risks from standard to complex, including professional liability and environmental liability.
 TRANSATLANTIC HOLDINGS, INC. AND SUBSIDIARIES
 Financial Highlights
 (In thousands, except per share data)
 Twelve Months Ended
 December 31,
 1991 1990 Pct. Change
 Statement of Operations Data:
 Net premiums written $483,703 $483,178 0.1
 Net premiums earned 497,420 471,936 5.4
 Adjusted underwriting loss (39,226) (30,460) 28.8
 Net investment income 121,334 103,604 17.1
 Loss Ratio 81.4 79.8
 Expense Ratio 26.2 25.9
 Combined Ratio 107.6 105.7
 Realized capital gains $3,747 $4,539 (17.4)
 Operating income 85,855 77,683 10.5
 Other deductions (1,757) (1,881) (6.6)
 Income before income taxes 84,098 75,802 10.9
 Net income 70,548 61,942 13.9
 Earnings per common share $3.09 $2.71 13.9
 Average common shares outstanding 22,859 22,857
 Three Months Ended
 December 31,
 1991 1990 Pct. Change
 Statement of Operations Data:
 Net premiums written $120,865 $127,582 (5.3)
 Net premiums earned 123,621 126,754 (2.5)
 Adjusted underwriting loss (12,240) (8,984) 36.2
 Net investment income 31,691 27,943 13.4
 Loss Ratio 80.3 78.8
 Expense Ratio 28.6 27.1
 Combined Ratio 108.9 105.9
 Realized capital gains $1,883 $1,826 3.1
 Operating income 21,334 20,785 2.6
 Other income (deductions) (281) 403 --
 Income before income taxes 21,053 21,188 (0.6)
 Net income 18,854 17,475 7.9
 Earnings per common share $0.83 $0.76 7.9
 Average common shares outstanding 22,861 22,857
 December 31,
 1991 1990
 Selected Balance Sheet Data:
 Investments and cash $1,793,759 $1,547,142
 Total assets 2,203,548 1,993,339
 Loss and loss adjustment expense
 reserves 1,241,160 1,064,214
 Stockholders' equity 499,592 421,469
 Book value per common share $21.85 $18.44
 -0- 2/27/92
 /CONTACT: David W. Smith of Transatlantic Holdings, Inc., 212-770-2162/
 (TRH) CO: Transatlantic Holdings, Inc. ST: New York IN: SU: ERN


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