American Re Corp. announced another quarter of earnings and continued surplus growth.
The company reported second quarter GAAP net income of $106.0 million, compared to $122.1 million in the second quarter of 2003. At June 30, 2004, the statutory surplus of the company’s reinsurance and insurance subsidiaries was $3.53 billion. This represents a 5.6% increase from statutory surplus of $3.34 billion at Dec. 31, 2003. Gross premiums written for the second quarter of 2004 were $1,090.7 million, a 3.2% decrease from $1,127.3 in 2003. The company’s GAAP combined ratio for the second quarter was 101.2%, compared to 92.2% in 2003. The accident year combined ratio for the company’s core business units was 93.5% for the second quarter, compared to 95.5% in 2003. The core results exclude results from non-core business operations, prior period effects and corporate retrocessions.
For the six months ended June 30, 2004, GAAP net income was $186.9 million, compared to $264.7 million in 2003.
For the first six months, gross premiums written were $2,066.0 million, a 10.2% decrease from $2,300.5 for the same period in 2003. The company’s GAAP combined ratio for the first six months was 101.5%, compared to 95.4% in 2003. The accident year combined ratio for the company’s core business units was 97.9% through six months, compared to 95.5% in 2003.
Commenting on these results, Chairman John Phelan said, “American Re’s steady earnings continue to build our financial strength and reflect disciplined underwriting so that we can provide our clients with the strongest financial security possible at a time when there are serious concerns about the quality of the industry’s reinsurance recoveries.”
American Re Corp., a member of the Munich Re Group, is a provider of reinsurance in the United States. 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.
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