FORM 11-K
GENERAL RE CORPORATION
Financial Centre
P.O. Box 10350
Stamford, Connecticut 06904-2350
June 27, 1996
Securities and Exchange Commission
Washington, D.C. 20549
Re: General Re Corporation
Report on Form 11-K
Gentlemen:
Pursuant to the requirements of the Securities Exchange Act of 1934, we
are submitting herewith the attached Form 11-K.
Very truly yours,
Elizabeth A. Monrad
Senior Vice President and Treasurer
(Principal Accounting Officer)
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC. 20549
FORM 11-K
ANNUAL REPORT PURSUANT TO
SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 (FEE REQUIRED)
For the Fiscal Year ended December 31, 1995
EMPLOYEE SAVINGS AND STOCK OWNERSHIP PLAN
OF
GENERAL RE CORPORATION
AND ITS DOMESTIC SUBSIDIARIES
(full title of plan)
General Re Corporation
Financial Centre
695 East Main Street
Stamford, Connecticut 06904-2350
(Name of issuer and address of principal executive office)
FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial Statements - See accompanying Report of Examination of
Independent Accountants.
(b) Exhibit 1 - Consent of Independent Accountants.
SIGNATURES
The Plan: Pursuant to the requirements of the Security Exchange Act of
1934, the plan administrator has duly caused this annual report to be
signed by the undersigned hereunto duly authorized.
PLAN: EMPLOYEES SAVINGS AND STOCK OWNERSHIP
PLAN OF GENERAL RE CORPORATION AND ITS
DOMESTIC SUBSIDIARIES
PLAN
ADMINISTRATOR: GENERAL RE CORPORATION
By:
Elizabeth A. Monrad
Date:
CONSENT OF INDEPENDENT ACCOUNTANTS
We consent to the incorporation by reference in the registration statement
of General Re Corporation and subsidiaries on Form S-8 (File number 2-75489)
of our report dated June 17, 1996 on our audits of the financial statements
and financial statement schedules of the Employee Savings and Stock Ownership
Plan of General Re Corporation and Its Domestic Subsidiaries as of December
31, 1995 and 1994, and for the year ended December 31, 1995, which report
is included in this Annual Report on Form 11-K.
New York, New York
June 17, 1996
EMPLOYEE SAVINGS AND STOCK OWNERSHIP PLAN
OF GENERAL RE CORPORATION
AND ITS DOMESTIC SUBSIDIARIES
Financial Statements
For the Years Ended December 31, 1995 and 1994
and Supplemental Schedules
EMPLOYEE SAVINGS AND STOCK OWNERSHIP PLAN of
GENERAL RE CORPORATION and ITS DOMESTIC SUBSIDIARIES
INDEX of FINANCIAL STATEMENTS and SCHEDULES
Page(s)
Report of Independent Accountants 2-3
Financial Statements:
Statements of Net Assets Available for Plan
Benefits, with fund information at
December 31, 1995 and 1994 4
Statement of Changes in Net Assets Available
for Plan Benefits, with fund information
for the year ended December 31, 1995 5
Notes to Financial Statements 6-14
Supplemental Schedules:
Item 27a - Schedule of Assets Held for Investment
Purposes at December 31, 1995 15
Item 27d - Schedule of Reportable Transactions
for the year ended December 31, 1995 16
Schedules other than those listed above have been omitted since they
are either not required or are not applicable.
1
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of the Employee Savings and Stock Ownership Plan of General
Re Corporation and Its Domestic Subsidiaries:
We have audited the accompanying statements of net assets available
for plan benefits of the EMPLOYEE SAVINGS AND STOCK OWNERSHIP
PLAN of GENERAL RE CORPORATION and ITS DOMESTIC
SUBSIDIARIES (the Plan) as of December 31, 1995 and 1994 and the
related statement of changes in net assets available for plan benefits for the
year ended December 31, 1995. These financial statements are the
responsibility of the Plan's management. Our responsibility is to express
an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used
and significant estimates made by the administrator, as well as evaluating
the overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the net assets available for plan benefits of
the Plan as of December 31, 1995 and 1994 and the changes in net assets
available for plan benefits for the year ended December 31, 1995, in
conformity with generally accepted accounting principles.
As explained in Note 3, the financial statements include securities
valued at $270,673,773 and $217,880,419 at December 31, 1995 and 1994,
respectively, (66% and 67% of total assets of the Plan, respectively) whose
values have been estimated by the trustees of the Plan in the absence of
readily ascertainable market values. We have reviewed the procedures used
by the trustees in arriving at their estimate of value of such securities and
have inspected the underlying documentation, and, in the circumstances,
we believe the procedures are reasonable and the documentation appropriate.
However, because of the inherent uncertainty of valuation, those
estimated values may differ significantly from the values that would have
been used had a ready market for the securities existed, and the differences
could be material.
2
REPORT OF INDEPENDENT ACCOUNTANTS (continued)
Our audits were performed for the purpose of forming an opinion on
the basic financial statements taken as a whole. The supplemental schedules
of assets held for investment purposes at December 31, 1995, and of reportable
transactions for the year ended December 31, 1995, are presented for the
purpose of additional analysis and are not a required part of the basic
financial statements but are supplementary information required by the
Department of Labor's Rules and Regulations for Reporting and Disclosure
under the Employee Retirement Income Security Act of 1974. The Fund
Information in the statement of net assets available for plan benefits and
the statement of changes in net assets available for plan benefits is
presented for purposes of additional analysis rather than to present the
net assets available for plan benefits and changes in net assets available
for plan benefits of each fund. The supplemental schedules and Fund
Information have been subjected to the auditing procedures applied in the
audits of the basic financial statements and, in our opinion, are fairly
stated in all material respects in relation to the basic financial
statements taken as a whole.
The schedule of assets held for investment purposes that accompanies
the Plan's financial statements does not disclose the historical cost of the
investments. Disclosure of this information is required by the Department
of Labor's Rules and Regulations for Reporting and Disclosure under the
Employee Retirement Income Security Act of 1974.
The schedule of reportable transactions that accompanies the Plan's
financial statements does not disclose the historical cost of the investments
comprising the transactions, nor the net gain or loss resulting from
dispositions of investments. Disclosure of this information is required by
the Department of Labor's Rules and Regulations for Reporting and Disclosure
under the Employee Retirement Income Security Act of 1974.
New York, New York
June 17, 1996
3
EMPLOYEE SAVINGS AND STOCK OWNERSHIP PLAN
of GENERAL RE CORPORATION and ITS DOMESTIC SUBSIDIARIES
STATEMENTS OF NET ASSETS AVAILABLE for PLAN BENEFITS, with fund information
December 31, 1995 and 1994
General Re General Re
Corporation Corporation
Preferred Common
Stock Stock Fund
December 31, 1995
ASSETS:
Allocated Investments, at fair value(Note 4) $54,127,031 $28,608,030
Unallocated Investments, at fair value(Note 4) 216,546,742
Participant loans receivable
Total assets 270,673,773 28,608,030
LIABILITIES:
Loan payable to General Re
Corporation 145,723,817
Net assets available
for plan benefits
December 31, 1995 $124,949,956 $28,608,030
Number of shares or units 1,724,037 2,696,327
Net asset value per share or per unit $72.48 $10.61
December 31, 1994
ASSETS:
Allocated Investments, at fair value(Note 4) $37,149,089 $23,721,569
Unallocated Investments, at fair value(Note 4) 180,731,330
Participant loans receivable
Cash 36
Total assets 217,880,455 23,721,569
LIABILITIES:
Loan payable to General Re
Corporation 146,841,949
Net assets available
for plan benefits
December 31, 1994 $71,038,506 $23,721,569
Number of shares 1,734,717 192,077
Net asset value per share $40.95 $123.50
See Notes to Financial Statements
4
Fidelity Fidelity Fidelity Fidelity
Fidelity Equity- Growth Investment Intermediate
Magellan Income Company Grade Bond
Fund Fund Fund Bond Fund Fund
$31,541,775 $18,832,833 $6,426,613 $1,181,283 $10,234,307
31,541,775 18,832,833 6,426,613 1,181,283 10,234,307
$31,541,775 $18,832,833 $6,426,613 $1,181,283 $10,234,307
366,850 496,516 177,090 160,065 983,124
$85.98 $37.93 $36.29 $7.38 $10.41
$22,159,859 $13,288,185 $3,569,855 $837,620 $8,817,601
22,159,859 13,288,185 3,569,855 837,620 8,817,601
$22,159,859 $13,288,185 $3,569,855 $837,620 $8,817,601
331,734 432,840 130,956 122,280 897,009
$66.80 $30.70 $27.26 $6.85 $9.83
See Notes to Financial Statements
4
Fidelity Fidelity Fidelity
Fidelity Fidelity Asset Asset Manager: Asset Manager:
Overseas Balanced Manager Growth Income
Fund Fund Fund Fund Fund
$6,844,718 $2,505,836 $1,297,013 $1,587,728 $451,164
6,844,718 2,505,836 1,297,013 1,587,728 451,164
$6,844,718 $2,505,836 $1,297,013 $1,587,728 $451,164
235,456 185,343 81,830 104,662 38,893
$29.07 $13.52 $15.85 $15.17 $11.60
$5,623,418 $2,343,483 $1,081,361 $895,553 $289,379
5,623,418 2,343,483 1,081,361 895,553 289,379
$5,623,418 $2,343,483 $1,081,361 $895,553 $289,379
205,986 190,682 78,190 69,747 27,771
$27.30 $12.29 $13.83 $12.84 $10.42
See Notes to Financial Statements
4
Fidelity Fidelity Fidelity Fidelity Fidelity
Small Cap Retirement Retirement Managed U.S. Equity
Stock Money Market Government Income Index
Fund Trust Money Market Portfolio Portfolio
$1,549,090 $11,840,707 $964,590 $7,664,924 $1,974,693
1,549,090 11,840,707 964,590 7,664,924 1,974,693
$1,549,090 $11,840,707 $964,590 $7,664,924 $1,974,693
125,027 11,840,707 964,590 7,664,924 87,492
$12.39 $1.00 $1.00 $1.00 $22.57
$522,888 $10,959,952 $679,237 $6,842,631 $849,770
522,888 10,959,952 679,237 6,842,631 849,770
$522,888 $10,959,952 $679,237 $6,842,631 $849,770
50,037 10,959,952 679,237 6,842,631 50,252
$10.45 $1.00 $1.00 $1.00 $16.91
See Notes to Financial Statements
4
Other Total
$187,632,335
216,546,742
$5,924,390 5,924,390
5,924,390 410,103,467
145,723,817
$5,924,390 $264,379,650
- -
- -
$139,631,450
180,731,330
$5,580,690 5,580,690
402,093 402,129
5,982,783 326,345,599
146,841,949
$5,982,783 $179,503,650
- -
- -
See Notes to Financial Statements
4
EMPLOYEE SAVINGS AND STOCK OWNERSHIP PLAN
of GENERAL RE CORPORATION and ITS DOMESTIC SUBSIDIARIES
STATEMENT of CHANGES in NET ASSETS AVAILABLE for PLAN BENEFITS,
with fund information
for the year ended December 31, 1995
General Re General Re
Corporation Corporation
Preferred Common
Stock Stock Fund
Net assets available
for plan benefits
December 31, 1994 $71,038,506 $23,721,569
Additions:
Employer contributions 4,011,986 231
Employee contributions 1,572,029
Loan repayments 368,800
Dividends 10,689,026 278,384
Interest 100,643
Net appreciation in fair
value of investments 54,278,146 5,984,707
Transfer (to) from other
funds, net (2,441,126)
Cash
Total additions 68,979,158 5,863,668
Deductions:
Benefits paid to
participants 1,484,828 518,420
Loans written 458,787
Administrative fee
Interest expense 13,582,880
Total deductions 15,067,708 977,207
Net assets available
for plan benefits
December 31, 1995 $124,949,956 $28,608,030
See Notes to Financial Statements
5
Fidelity Fidelity Fidelity Fidelity
Fidelity Equity- Growth Investment Intermediate
Magellan Income Company Grade Bond
Fund Fund Fund Bond Fund Fund
$22,159,859 $13,288,185 $3,569,855 $837,620 $8,817,601
309 24 6 61
1,949,687 1,112,798 799,737 130,665 652,226
311,592 184,735 80,144 16,377 119,078
1,816,504 1,071,154 289,664 68,300 604,644
98,747 56,656 27,555 5,626 26,431
6,415,250 3,297,526 1,272,576 75,239 542,159
(312,176) 541,279 584,375 88,162 (116,543)
10,279,913 6,264,172 3,054,057 384,369 1,828,056
444,553 424,163 99,867 11,474 234,686
450,840 293,780 97,266 29,059 174,982
2,604 1,581 166 173 1,682
897,997 719,524 197,299 40,706 411,350
$31,541,775 $18,832,833 $6,426,613 $1,181,283 $10,234,307
See Notes to Financial Statements
5
Fidelity Fidelity Fidelity
Fidelity Fidelity Asset Asset Manager: Asset Manager:
Overseas Balanced Manager Growth Income
Fund Fund Fund Fund Fund
$5,623,418 $2,343,483 $1,081,361 $895,553 $289,379
35
624,275 207,838 135,994 174,963 54,285
86,289 22,928 24,495 17,934 11,004
157,457 105,637 36,307 23,614 19,533
33,193 8,325 5,047 5,748 1,758
391,249 226,253 158,391 207,164 41,300
263,455 (296,161) (103,775) 353,549 69,443
1,555,918 274,855 256,459 782,972 197,323
251,849 77,429 15,888 79,464 7,114
82,329 34,661 24,919 11,333 28,424
440 412
334,618 112,502 40,807 90,797 35,538
$6,844,718 $2,505,836 $1,297,013 $1,587,728 $451,164
See Notes to Financial Statements
5
Fidelity Fidelity Fidelity Fidelity
Small Cap Retirement Retirement Managed
Stock Money Market Government Income
Fund Trust Money Market Portfolio
$522,888 $10,959,952 $679,237 $6,842,631
138 95,483
192,139 689,233 64,652 465,111
41,176 215,667 7,396 120,653
94,648 659,247 47,597 438,192
5,955 29,364 1,719 27,362
98,783
619,486 208,715 207,242 146,437
1,052,187 1,802,226 328,744 1,293,238
6,567 703,052 31,123 263,891
19,418 215,652 11,843 205,118
2,767 425 1,936
25,985 921,471 43,391 470,945
$1,549,090 $11,840,707 $964,590 $7,664,924
See Notes to Financial Statements
5
Fidelity
U.S. Equity
Index Other Total
Portfolio
$849,770 $5,982,783 $179,503,650
4,108,273
193,541 9,019,173
19,356 (1,647,624)
43,113 16,443,021
5,044 439,173
377,547 73,366,290
642,294 454,656
(402,093) (402,093)
1,280,895 (2,049,717) 103,428,493
136,479 166,576 4,957,423
19,489 (2,157,900)
4 12,190
13,582,880
155,972 (1,991,324) 18,552,493
$1,974,693 $5,924,390 $264,379,650
See Notes to Financial Statements
5
EMPLOYEE SAVINGS AND STOCK OWNERSHIP PLAN of
GENERAL RE CORPORATION and ITS DOMESTIC SUBSIDIARIES
NOTES to FINANCIAL STATEMENTS
1. Description of Plan
The following description of the Employee Savings and Stock Ownership
Plan of General Re Corporation and Its Domestic Subsidiaries (the "Plan")
provides only general information. Participants should refer to the Plan
agreement for a more complete description of the Plan's provisions.
General - The Plan is a defined contribution plan covering employees of
General Re Corporation and its domestic subsidiaries (the "Company")
who complete a twelve month period of not less than one thousand hours
of service. The Plan allows employees of the Company to make after tax
contributions as well as tax deferred contributions to the Plan as permitted
under Internal Revenue Code Section 401(k). In addition, the Company
contributes an amount (the "Company match") related to the amount of
employee investment. The Plan is subject to the provisions of the Employee
Retirement Income Security Act of 1974 (ERISA).
ESOP - In July 1989, the Company established a leveraged Employee Stock
Ownership Plan ("ESOP"). The ESOP borrowed $150,000,000 with interest
at 9.25% and principal payable annually, due to the Company in 2014. The
proceeds of this borrowing were used by the ESOP to purchase 1,754,386
shares of 7-1/4% cumulative convertible preferred stock (Preferred Stock)
of General Re Corporation. All Preferred Stock outstanding is held by the
ESOP and is convertible into common stock on a one-for-one basis. Preferred
Stock must be converted or redeemed into common stock or cash upon the
participant's withdrawal from the Plan.
The Preferred Stock is held by the ESOP trustee as collateral for the
loan from the Company. The Company makes contributions to the ESOP
which, together with the dividend on the Preferred Stock, are used to make
loan interest and principal repayments. As interest and principal are repaid,
a portion of the Preferred Stock is allocated to participating employees. At a
minimum, principal and interest payments are sufficient to provide for
allocation of Preferred Stock to meet the requirements for the Company
match under the Plan.
During 1995, the Plan received a dividend on the Preferred Stock
of $10,689,026 and a Company contribution of $4,011,986. The Plan paid
$13,582,880 in interest expense. In 1995 and 1994, 48,990 and 65,763
shares, respectively, net of retired shares of 10,680 and 6,293, respectively,
were allocated to employees. There were 1,379,278 and 1,438,944 shares of
unallocated Preferred Stock at December 31, 1995 and 1994, respectively.
The fair value of the loan payable is estimated using discounted cash flow
analyses, based on the Corporation's current incremental borrowing rates for
similar types of arrangements and was $188,000,000 at December 31, 1995.
EMPLOYEE SAVINGS AND STOCK OWNERSHIP PLAN of
GENERAL RE CORPORATION and ITS DOMESTIC SUBSIDIARIES
NOTES to FINANCIAL STATEMENTS (continued)
Contributions - Participants may contribute up to 16% of their base
salary and allocate their investment among any of the Plan's funds. The
Company match is 100% of an employee's contribution up to 6% of the
employee's basic salary. The Internal Revenue Code limitation on employee
salary deferral (401(k)) contributions during 1995 was $9,240.
Participant Accounts - Each participant's account is credited with the
participant's contribution and an allocation of the Company match, Plan
earnings and forfeitures of terminated participants' earnings or account
balances, as defined. Forfeitures, which are included in transfers from other
funds were $54,324 during 1995. The benefit to which a participant is entitled
is the benefit that can be provided from the participant's vested account.
Participant accounts are credited or debited on the last business day of each
calendar quarter with the change in the value of each fund for the period.
Vesting - All employee contributions become vested immediately. By
government restriction, an employee is not allowed to withdraw Company
match amounts that have not been in his/her account for at least two years.
While actively employed, an employee becomes 50%, 75%, and 100% vested
in the value of the Company match after 2, 3 and 4 years, respectively, of
Company service.
Transfers - With the exception of the Fidelity Managed Income
Portfolio which may be changed on a monthly basis, participants are
permitted to change the investment of their interests in any of the funds on a
daily basis subject to certain limits.
Loans - The Plan allows participants to borrow from the "before tax"
and "rollover" portions of their respective accounts. Loans may not exceed
the lesser of one half of the participant's vested account balance or $50,000.
Nonresidence loans are written for periods of 6 to 54 months. The Plan also
allows loans granted for purchases of principal residences to be repaid over a
30-year period. A fixed interest rate of the prime rate plus one percent
calculated at the inception of the loan is charged over the life of the loan.
The interest rates ranged from 9.5% to 10% for 1995 and were 7% to 9.5%
for 1994. Interest and principal repayments are credited directly to the
borrower's respective account and are repaid in monthly installments by
payroll deductions. Loan balances outstanding are reflected as assets of the
Plan. Market valuations are not readily determinable for participant loans
due to the multitude of interest rates and terms of the various loans.
2. Investment Funds of the Plan
The Plan has an agreement with Fidelity Management Trust Company
to perform record keeping and investment management functions for the Plan.
Certain members of the Company's Board of Directors are also trustees of the
Fidelity Group of Mutual Funds.
7
EMPLOYEE SAVINGS AND STOCK OWNERSHIP PLAN of
GENERAL RE CORPORATION and ITS DOMESTIC SUBSIDIARIES
NOTES to FINANCIAL STATEMENTS (continued)
A description of the investment funds of the Plan at December 31,
1995 is as follows:
* General Re Corporation Common Stock Fund
The General Re Corporation Common Stock Fund is a growth fund.
The Fund seeks substantial long-term growth of capital by investing
exclusively in General Re Corporation common stock. Participants have full
voting rights for the shares of General Re Corporation common stock in their
accounts.
In 1994, the General Re Corporation Common Stock Fund was based on per
share values. As of November 6, 1995 the General Re Corporation Common
Stock Fund was unitized. At December 31, 1995 there were 2,696,327 units
at a value of $10.61 per unit.
* Fidelity Magellan Fund
The Fidelity Magellan Fund is an aggressive growth fund. The Fund
seeks long-term capital appreciation by investing in the stocks of both
well-known and lesser-known companies with above-average growth
potential and a correspondingly higher level of risk.
* Fidelity Equity-Income Fund
The Fidelity Equity-Income Fund is a growth and income fund. The
Fund seeks a yield that exceeds the composite yield of the Standard and
Poor's 500 Index, and considers the potential for capital appreciation when
selecting fund investments. The Fund invests primarily in common stocks but
can also invest in bonds and convertible securities. Dividend amounts will
vary depending on the yields of the securities held in the portfolio.
* Fidelity Growth Company Fund
The Fidelity Growth Company Fund is a growth fund. It seeks
long-term capital appreciation by investing primarily in common stocks and
securities convertible into common stocks. It may invest in companies of
any size with above-average growth potential or companies that appear
undervalued relative to their potential return.
8
EMPLOYEE SAVINGS AND STOCK OWNERSHIP PLAN of
GENERAL RE CORPORATION and ITS DOMESTIC SUBSIDIARIES
NOTES to FINANCIAL STATEMENTS (continued)
* Fidelity Investment Grade Bond Fund
The Fidelity Investment Grade Bond Fund (previously, the Flexible
Bond Portfolio) is an income fund. It seeks a high rate of current income
consistent with reasonable risk. It invests in a broad range of fixed income
securities. The Fund also seeks to protect investors' capital as well as take
advantage of opportunities to realize capital appreciation, where appropriate.
* Fidelity Intermediate Bond Fund
The Fidelity Intermediate Bond Fund is an income fund. The Fund
seeks a high level of current income. The Fund invests in high and upper-
medium grade corporate bonds rated A or better with intermediate maturities,
mortgage securities, bank obligations, and U.S. government and agency
securities. The Fund's average portfolio maturity ranges between three and
ten years.
* Fidelity Overseas Fund
The Fidelity Overseas Fund is an aggressive growth fund. The Fund
seeks growth of capital over the long term. The Fund invests primarily in
foreign securities, including common stock and securities convertible into
common stock, as well as debt instruments.
* Fidelity Balanced Fund
The Fidelity Balanced Fund is a growth and income fund. It seeks the
highest amount of income possible while preserving principal by investing in
investment grade or higher bonds and high-yielding securities.
* Fidelity Asset Manager Fund
The Fidelity Asset Manager Fund seeks high total return with reduced
risk over the long-term. Its assets are allocated among and across domestic
and foreign equities, bonds and short-term instruments. The Fund's assets are
gradually shifted to take advantage of the outlook for market conditions.
9
EMPLOYEE SAVINGS AND STOCK OWNERSHIP PLAN of
GENERAL RE CORPORATION and ITS DOMESTIC SUBSIDIARIES
NOTES to FINANCIAL STATEMENTS (continued)
* Fidelity Asset Manager: Growth Fund
The Fidelity Asset Manager: Growth Fund seeks to maximize total
return over the long-term by allocating its assets among stocks, bonds,
short-term instruments and other investments. The Fund allocates its
assets among three principal asset classes: stocks, bonds, and short-term
instruments. It may invest in many types of domestic and foreign securities.
The flexible approach to diversification allows the Fund to take
advantage of a wide variety of investment options in pursuit of high total
return but with reduced risk from allocating its investments among the asset
classes.
* Fidelity Asset Manager: Income Fund
The Fidelity Asset Manager: Income Fund seeks a high level of
current income by maintaining a diversified portfolio of stocks, bonds,
short-term instruments, and other investments. The Fund emphasizes
investment in bonds and short-term instruments for income and price
stability, but allows some investment in stocks for their potential to grow
and keep pace with inflation. The asset mix is designed to provide a
relatively conservative asset allocation across various market conditions.
* Fidelity Small Cap Stock Fund
The Fidelity Small Cap Stock Fund seeks long-term capital
appreciation. Using proprietary computer models and fundamental research,
the Fund invests in all types of equity securities issued by companies with
small market capitalizations. These companies may include start-ups with
good potential, firms that have recently gone public, or companies that
operate in small industries or regional markets. The Fund may also invest
a portion of its assets in stock issued by companies with larger market
capitalizations. The Fund's share price and total return will fluctuate.
* Fidelity Retirement Money Market Trust
The Fidelity Retirement Money Market Trust is a money market fund.
The Trust seeks as high a level of current income as is consistent with the
preservation of capital and liquidity. It invests in high-quality, U.S.
dollar-denominated money market instruments of U.S. and foreign issuers. The
Trust's objective is to be a conservative, low-risk investment.
10
EMPLOYEE SAVINGS AND STOCK OWNERSHIP PLAN of
GENERAL RE CORPORATION and ITS DOMESTIC SUBSIDIARIES
NOTES to FINANCIAL STATEMENTS (continued)
* Fidelity Retirement Government Money Market Trust
The Fidelity Retirement Government Money Market Trust is a
money market fund. It seeks as high a level of current income as is
consistent with the preservation of principal and liquidity. It invests in
obligations issued or guaranteed as to principal and interest by the U.S.
Government, its agencies or instrumentalities, and in repurchase agreements
secured by these obligations. The Trust's objective is to be a conservative,
relatively low-risk investment.
* Fidelity Managed Income Portfolio
The Fidelity Managed Income Portfolio (previously, the GIC Open-
End Portfolio) seeks preservation of capital and a competitive level of
income over time. The Portfolio purchases high-quality, short and
long-term investment contracts (GICs), bank investment contracts
(BICs), short-term money market instruments, and "synthetic" GICs
(debt obligations issued by one institution and insured by another as to
payment of interest and return of principal at maturity). While the
Company has not expressed any intention to do so, termination prior to
maturity of the GICs would result in certain penalties. The participants
are exposed to credit loss in the event of nonperformance by
the companies with whom the investment contracts are placed.
However, the plan administrator does not anticipate nonperformance by
these companies.
* Fidelity U.S. Equity Index Portfolio
The Fidelity U.S. Equity Index Portfolio is a growth and income
fund. It seeks investment results that correspond to the total return
performance of the S&P 500 Index, which is comprised of common stocks.
11
EMPLOYEE SAVINGS AND STOCK OWNERSHIP PLAN of
GENERAL RE CORPORATION and ITS DOMESTIC SUBSIDIARIES
NOTES to FINANCIAL STATEMENTS (continued)
The number of employees participating in each fund of the Plan at
December 31, 1995 and 1994 are as follows:
1995 1994
General Re Corporation Preferred Stock 1,947 1,913
General Re Corporation Common Stock Fund 1,223 1,227
Fidelity Magellan Fund 1,378 1,309
Fidelity Equity-Income Fund 978 966
Fidelity Growth Company Fund 552 437
Fidelity Investment Grade Bond Fund 178 173
Fidelity Intermediate Bond Fund 686 710
Fidelity Overseas Fund 677 655
Fidelity Balanced Fund 273 285
Fidelity Asset Manager Fund 86 75
Fidelity Asset Manager: Growth Fund 120 98
Fidelity Asset Manager: Income Fund 38 27
Fidelity Small Cap Stock Fund 166 84
Fidelity Retirement Money Market Trust 1,028 1,092
Fidelity Retirement Government Money Market Trust 102 91
Fidelity Managed Income Portfolio 573 586
Fidelity US Equity Index Portfolio 183 111
3. Summary of Significant Accounting Policies
The preparation of financial statements requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amount of change in net assets available for plan
benefits during the reporting period. Actual results could differ from those
estimates. The following summarizes the Plan's significant accounting
policies:
Investments - Investments in mutual, money market and common
collective trust shares are valued based on reported net asset values.
Investments in stocks traded on a national securities exchange are valued at
the last reported sales price on the last business day of the year. The
investment in General Re cumulative convertible preferred stock held in the
ESOP is valued at fair value by the trustee based upon the report of an
independent appraiser. Because there is no ready market for these
securities, this valuation is an estimate. It is at least reasonably
possible that a change in the estimate will occur in the near term that
may have a material effect on the financial statements.
The Plan presents in the statement of changes in net assets the net
appreciation in the fair value of its investments which consists of the
realized gains or losses and the unrealized appreciation on those
investments.
12
EMPLOYEE SAVINGS AND STOCK OWNERSHIP PLAN of
GENERAL RE CORPORATION and ITS DOMESTIC SUBSIDIARIES
NOTES to FINANCIAL STATEMENTS (continued)
Purchases and sales of investments are recorded as of the trade date.
Interest income is recorded as earned on the accrual basis. Dividend
income is recorded on the ex-dividend date.
Participant loans are carried at unpaid principal. The fair value of
participant loans was not readily determinable due to the high number of
loans and their varying terms. Accordingly, the Plan believes it would
have to expend excessive costs for the benefit derived. Interest income
on the loans is recorded as earned on an accrual basis.
Contributions - Contributions from the employees and the employer
are recorded in the period in which the payroll deductions are made from Plan
participants.
Employer contributions to the General Re Corporation Preferred Stock
Fund are made in shares of Preferred Stock. All other employer contributions
are made in cash.
Expenses - The management and service fees of the Fidelity Group of
Mutual Funds are charged to operations of the respective funds. Certain
administrative expenses, primarily consulting and auditing fees, are paid by
the Company.
4. Investments
Investments held by the Plan at December 31, 1995 and 1994 are
summarized as follows:
<TABLE>
<CAPTION>
1995 1994
<S> <C> <C> <C> <C>
Fair Fair
Cost Value Cost Value
General Re Corporation
Preferred Stock $147,405,164 $270,673,773 $148,318,304 $217,880,419
General Re Corporation
Common Stock 18,391,686 28,608,030 18,331,121 23,721,569
Fidelity Magellan Fund 24,722,712 31,541,775 21,352,872 22,159,859
Fidelity Equity Income Fund 14,721,083 18,832,833 12,305,107 13,288,185
Fidelity Growth Company Fund 5,315,909 6,426,613 3,627,546 3,569,855
Fidelity Investment Grade
Bond Fund 1,169,484 1,181,283 908,154 837,620
Fidelity Intermediate Bond Fund 10,055,857 10,234,307 9,192,676 8,817,601
Fidelity Overseas Fund 6,278,317 6,844,718 5,419,735 5,623,418
Fidelity Balanced Fund 2,384,905 2,505,836 2,446,320 2,343,483
Fidelity Asset Manager Fund 1,231,348 1,297,013 1,182,473 1,081,361
Fidelity Asset Manager: Growth Fund 1,457,797 1,587,728 976,651 895,553
Fidelity Asset Manager: Income Fund 425,400 451,164 301,937 289,379
Fidelity Small Cap Stock Fund 1,480,521 1,549,090 529,615 522,888
Fidelity Retirement Money
Market Trust 11,840,707 11,840,707 10,959,952 10,959,952
Fidelity Retirement Government
Money Market Trust 964,590 964,590 679,237 679,237
Fidelity Managed Income Portfolio 7,664,924 7,664,924 6,842,631 6,842,631
Fidelity U.S. Equity Index Portfolio 1,580,475 1,974,693 817,819 849,770
Total $257,090,879 $404,179,077 $244,192,150 $320,362,780
</TABLE>
13
EMPLOYEE SAVINGS AND STOCK OWNERSHIP PLAN of
GENERAL RE CORPORATION and ITS DOMESTIC SUBSIDIARIES
NOTES to FINANCIAL STATEMENTS (continued)
The cost basis of nonresidence participant loans was $2,836,829
and $2,991,671 at December 31, 1995 and 1994, respectively, and the cost
basis of participant loans for the purchase of a principal residence was
$3,087,561 and $2,589,019 at December 31, 1995 and 1994, respectively.
Realized gains from securities transactions were $2,215,290 for
1995. At December 31, 1995, the Fidelity Equity Income Fund, Fidelity
Magellan Fund, General Re Corporation Preferred Stock and General Re
Corporation Common Stock, each exceeded 5% of the net assets available
for plan benefits. At December 31, 1994, the Fidelity Equity Income Fund,
Fidelity Magellan Fund, Fidelity Retirement Money Market Portfolio, General
Re Corporation Preferred Stock and General Re Corporation Common
Stock each exceeded 5% of the net assets available for plan benefits.
5. Plan Termination
The Company intends to continue the Plan indefinitely but reserves
the right to suspend contributions temporarily or to amend or terminate the
Plan. If the Plan were to be terminated, all members would become fully
vested, and all the Plan assets would be used solely to provide the benefits
payable to employees and their beneficiaries.
6. Tax Status
The Plan obtained its latest determination letter on April 28, 1995,
in which the Internal Revenue Service stated that the Plan, as then designed,
was in compliance with applicable requirements of the Internal Revenue
Code. The determination letter is subject to the Plan's adoption of the
proposed amendments submitted to the Internal Revenue Service in letters
dated March 21, 1995 and April 17, 1995, which were adopted in 1995.
The plan has been amended since receiving the determination letter.
However, the Plan administrator and the Plan's tax counsel believe that the
Plan is currently designed and being operated in compliance with the
applicable requirements of the Internal Revenue Code. Therefore, no
provision for income taxes has been included in the Plan's financial
statements.
14
EMPLOYEE SAVINGS AND STOCK OWNERSHIP PLAN of
GENERAL RE CORPORATION and ITS DOMESTIC SUBSIDIARIES
SUPPLEMENTAL SCHEDULE
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
at December 31, 1995
Number of Current
Shares or Units Description Cost Value
(1)
Mutual Funds
366,850 Fidelity Magellan Fund $31,541,775
496,516 Fidelity Equity Income Fund 18,832,833
177,090 Fidelity Growth Company Fund 6,426,613
160,065 Fidelity Investment Grade Bond Portfolio 1,181,283
983,124 Fidelity Intermediate Bond Fund 10,234,307
235,456 Fidelity Overseas Fund 6,844,718
185,343 Fidelity Balanced Fund 2,505,836
81,830 Fidelity Asset Manager Fund 1,297,013
104,662 Fidelity Asset Manager: Growth Fund 1,587,728
38,893 Fidelity Asset Manager: Income Fund 451,164
125,027 Fidelity Small Cap Stock Fund 1,549,090
87,492 Fidelity U.S. Equity Index Portfolio 1,974,693
Money Market Funds
11,840,707 Fidelity Retirement Money 11,840,707
Market Trust
964,590 Fidelity Retirement Government 964,590
Money Market Trust
Common/Collective Trusts
7,664,924 Fidelity Managed Income Portfolio 7,664,924
Preferred Stocks
1,724,037 General Re Corporation 270,673,773
Common Stocks
2,696,327 General Re Corporation 28,608,030
Participant Loans
Residence, at cost 3,087,561
Nonresidence, at cost 2,836,829
Total $410,103,467
(1) The record keeper has informed the Plan's management that it is not
possible for the record keeper to provide historical cost.
The accompanying notes are an integral part of the supplemental schedule.
15
EMPLOYEE SAVINGS AND STOCK OWNERSHIP PLAN of
GENERAL RE CORPORATION and ITS DOMESTIC SUBSIDIARIES
SUPPLEMENTAL SCHEDULE
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
for the year ended December 31, 1995
The following schedule itemizes those securities for which the aggregate
amount of purchase and sale transactions, or for which a single transaction,
was in excess of 5% of the current fair value of the Plan's net assets at
January 1, 1995.
Aggregate Reportable Transactions
Cost of Net Gain
Description of Asset Purchases Sales Assets(1) or (Loss)(1)
Fidelity Magellan Fund $6,543,160 $3,576,494
Fidelity Retirement Money
Market Portfolio 5,512,559 4,631,804
General Re Corporation:
Preferred Stock 8,338,889 1,539,122
Single Reportable Transactions
None
(1) The record keeper has informed the Plan's management that it
is not possible for the record keeper to provide this information.
The accompanying notes are an integral part of the supplemental schedule.
16
