In 2004, prior period loss development was $482.3 million, compared to $368 million in 2003. These losses consisted of $180 million for prior-year asbestos liabilities and $302.3 million for casualty business primarily stemming from accident years 1997-2001.

American Re reported gross premiums written for 2004 were $4.21 billion, a 9 percent decrease from $4.6 billion in 2003.

The company's combined ratio stood at 122, compared to 102.6 in 2003.

Statutory surplus was reported at $3.39 billion, a 1.5 percent increase over $3.34 billion in 2003.

American Re reported that the accident year combined ratio for the company's core business units eroded, going from 101.8 for 2004 from 95.4 in 2003. The results do not include results from non-core business operations and corporate retrocessions.

Catastrophe losses contributed 6 points to the combined ratio of the core business units in 2004, compared to 1.2 points in 2003.

Catastrophe losses in 2004 were $202.1 million, compared to $50.7 million in 2003.

For the fourth quarter of 2004, net loss was $90.6 million, compared to $56.6 million during the same period in 2003.

Gross premiums written for the fourth quarter were $974.2 million, a 16 percent decline from $1.2 billion in 2003.

Fourth quarter combined ratio was 147.8 percent, compared to 123.0 percent in 2003.

The accident year combined ratio for its core business units improved to 94.9 for the fourth quarter, compared to 98 percent in 2003.

Fourth quarter earnings were impacted by a reserve charge of $287 million, which included a $180 million strengthening of prior-year asbestos liabilities.

"American Re's reserve strengthening is a direct result of the company's ongoing monitoring of these exposures and demonstrates the company's commitment to responsibly address prior-year loss development based upon the latest available information," said John Phelan, American Re's chairman. "Despite the charge and catastrophe losses mainly from the four hurricanes in Florida, American Re was still able to achieve net income of $103 million in 2004."

The company chose not to report fourth-quarter net income, said Craig Howie, a company spokesman.