But the company also reported that statutory surplus for the six months ending June 30 increased 5.6 percent to $3.53 billion compared to $3.34 billion at the end of last year.

The six-month figures showed a decline in net income as well. The company earned $186.9 million for the half-year ending June 30 compared to $267.4 million in the same period last year.

The declining numbers come as the industry overall, in the first quarter of this year at least, enjoyed a nearly 100 percent rise in profitability, according to figures provided the Insurance Services Office.

American Re is a subsidiary of Munich Re, whose chairman on Friday announced it had boosted the reserves of its American unit by $100 million in the first half, of which $80 million was injected into the second quarter. Since 2000, Munich Re has injected a total of 4 billion Euros in reserves into its American subsidiary.

Company chairman John Phelan put the best face on the quarterly numbers.

"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 recoveries," he said.