FORM 11-K
GENERAL RE CORPORATION
Financial Centre
P.O. Box 10350
Stamford, Connecticut 06904-2350
June 19, 1997
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)
<PAGE>
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, 1996
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)
<PAGE>
FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial Statements - See accompanying Report of Examination of
Independent Accountants.
(b) Exhibit 1 - Consent of Independent Accountants.
<PAGE>
SIGNATURES
The Plan: Pursuant to the requirements of the Securities 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:
<PAGE>
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 19, 1997 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, 1996
and 1995, and for the year ended December 31, 1996, which report is included in
this Annual Report on Form 11-K.
New York, New York
June 19, 1997
<PAGE>
EMPLOYEE SAVINGS AND STOCK OWNERSHIP PLAN
OF GENERAL RE CORPORATION
AND ITS DOMESTIC SUBSIDIARIES
Financial Statements
For the Years Ended December 31, 1996 and 1995
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, 1996 and 1995 4
Statement of Changes in Net Assets Available
for Plan Benefits, with fund information
for the year ended December 31, 1996 5
Notes to Financial Statements 6-17
Supplemental Schedules:
Item 27a - Schedule of Assets Held for Investment Purposes
at December 31, 1996 18
Item 27d - Schedule of Reportable Transactions
for the year ended December 31, 1996 19
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, 1996
and 1995 and the related statement of changes in net assets available for plan
benefits for the year December 31, 1996. 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
management, 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, 1996 and 1995 and the changes in net assets available for
plan benefits for the year ended December 31, 1996, in conformity with generally
accepted accounting principles.
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, 1996, and of reportable
transactions for the year ended December 31, 1996, 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.
2
REPORT OF INDEPENDENT ACCOUNTANTS (continued)
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 19, 1997
3
<TABLE>
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, 1996 and 1995
<CAPTION>
---------------------------------------------------------------------------------
General Re General Re Templeton
Corporation Corporation Founders PIMCO PIMCO Developing Janus
Preferred Common Balanced Global High Markets Worldwide
Yield
Stock Stock Fund Fund Fund Fund Fund Fund
---------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
December 31, 1996
ASSETS:
Allocated Investments, at fair value
(Note 4) $63,075,357 26,654,213 $590,052 $55,185 $347,913 $568,709 $2,785,185
Unallocated Investments, at fair value
(Note 4) 209,974,134 - - - - - -
Participant loans receivable
- - - - - - -
---------------------------------------------------------------------------------
Total assets
273,049,491 26,654,213 590,052 55,185 347,913 568,709 2,785,185
---------------------------------------------------------------------------------
LIABILITIES:
Loan payable to General Re Corporation
144,286,347 - - - - - -
---------------------------------------------------------------------------------
Net assets available for plan benefits
December 31, 1996 128,763,144 26,654,213 $590,052 $55,185 $347,913 $568,709 $2,785,185
Number of shares or units
1,711,907 2,434,175 55,613 5,301 31,064 36,929 82,671
Net asset value per share or unit $75.22 $10.95 $10.61 $10.41 $11.20 $15.40 $33.69
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 unit $72.48 $10.61 - - - - -
See Notes to Financial Statements
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, 1996 and 1995
-------------------------------------------------------------------------------------
Fidelity Fidelity Fidelity
Fidelity Equity Growth Investment Fidelity Fidelity Fidelity
Magellan Income Company Grade Intermediate Overseas Real
Estate
Fund Fund Fund Bond Fund Bond Fund Fund Fund
-------------------------------------------------------------------------------------
December 31, 1996
ASSETS:
Allocated Investments, at fair value
(Note 4) $30,860,025 $24,782,210 $11,421,815 $1,144,566 $9,852,933 $7,848,523 $354,756
Unallocated Investments, at fair value
(Note 4) - - - - - - -
Participant loans receivable - - - - - - -
-------------------------------------------------------------------------------------
Total assets
30,860,025 24,782,210 11,421,815 1,144,566 9,852,933 7,848,523 354,756
-------------------------------------------------------------------------------------
LIABILITIES:
Loan payable to General Re Corporation
- - - - - - -
-------------------------------------------------------------------------------------
Net assets available for plan benefits
December 31, 1996 $30,860,025 $24,782,210 $11,421,815 $1,144,566 $9,852,933 $7,848,523 $354,756
=====================================================================================
Number of shares or units 382,641 578,618 282,299 160,754 977,474 254,492 19,676
Net asset value per share or unit $80.65 $42.83 $40.46 $7.12 $10.08 $30.84 $18.03
December 31, 1995
ASSETS:
Allocated Investments, at fair value
(Note 4) $31,541,775 $18,832,833 $6,426,613 $1,181,283 $10,234,307 $6,844,718 $ -
Unallocated Investments, at fair value
(Note 4)
Participant loans receivable
-------------------------------------------------------------------------------------
Total assets
31,541,775 18,832,833 6,426,613 1,181,283 10,234,307 6,844,718 -
-------------------------------------------------------------------------------------
LIABILITIES:
Loan payable to General Re Corporation
-------------------------------------------------------------------------------------
Net assets available for plan benefits
December 31, 1995 $31,541,775 $18,832,833 $6,426,613 $1,181,283 $10,234,307 $6,844,718 $ -
=====================================================================================
Number of shares or units 366,850 496,516 177,090 160,065 983,124 235,456 -
Net asset value per share or unit $85.98 $37.93 $36.29 $7.38 $10.41 $29.07 $ -
See Notes to Financial Statements
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, 1996 and 1995
---------------------------------------------------------------------------------
Fidelity Fidelity Fidelity Fidelity Fidelity Fidelity
Fidelity Asset Asset Emerging Asset Small Cap Retirement
Balanced Manager Manager Markets Manager Stock Money Market
Fund Fund Growth Fund Fund Income Fund Trust
Fund
---------------------------------------------------------------------------------
December 31, 1996
ASSETS:
Allocated Investments, at fair value
(Note 4) $1,888,213 $1,401,557 $1,782,166 $107,617 $174,841 $2,862,463 $12,501,203
Unallocated Investments, at fair value
(Note 4) - - - - - - -
Participant loans receivable - - - - - - -
---------------------------------------------------------------------------------
Total assets
1,888,213 1,401,557 1,782,166 107,617 174,841 2,862,463 12,501,203
---------------------------------------------------------------------------------
LIABILITIES:
Loan payable to General Re Corporation - - - - - - -
---------------------------------------------------------------------------------
Net assets available for plan benefits
December 31, 1996 $1,888,213 $1,401,557 1,782,166 $107,617 174,841 $2,862,463 12,501,203
=================================================================================
Number of shares or units 134,106 85,098 109,001 6,475 15,060 211,096 12,501,203
Net asset value per share or unit $14.08 $16.47 $16.35 $16.62 $11.61 $13.56 $1.00
December 31, 1995
ASSETS:
Allocated Investments, at fair value
(Note 4) $2,505,836 $1,297,013 $1,587,728 $ - $451,164 $1,549,090 $11,840,707
Unallocated Investments, at fair value
(Note 4)
Participant loans receivable
---------------------------------------------------------------------------------
Total assets
2,505,836 1,297,013 1,587,728 - 451,164 1,549,090 11,840,707
---------------------------------------------------------------------------------
LIABILITIES:
Loan payable to General Re Corporation
---------------------------------------------------------------------------------
Net assets available for plan benefits
December 31, 1995 $2,505,836 $1,297,013 $1,587,728 $ - $451,164 $1,549,090 $11,840,707
=================================================================================
Number of shares or units 185,343 81,830 104,662 - 38,893 125,027 11,840,707
Net asset value per share or unit $13.52 $15.85 $15.17 $ - $11.60 $12.39 $1.00
See Notes to Financial Statements
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, 1996 and 1995
- --------------------------------------------------------------------------------------------------------------
Fidelity Fidelity Fidelity
Retirement Managed U.S. Equity
Government Income Index
Money Market Portfolio Portfolio Other Total
- --------------------------------------------------------------------------------------------------------------
December 31, 1996
ASSETS:
Allocated Investments, at fair value
(Note 4) $1,138,786 $7,930,358 $5,277,244 $ - $215,405,890
Unallocated Investments, at fair value
(Note 4) - - - - $209,974,134
Participant loans receivable - - - 6,521,305 $6,521,305
- --------------------------------------------------------------------------------------------------------------
Total assets 1,138,786 7,930,358 5,277,244 6,521,305 431,901,329
- --------------------------------------------------------------------------------------------------------------
LIABILITIES:
Loan payable to General Re Corporation - - - - $144,286,347
- --------------------------------------------------------------------------------------------------------------
Net assets
available
for plan
benefits
December 31, 1996 $1,138,786 $7,930,358 $5,277,244 $6,521,305 $287,614,982
==============================================================================================================
Number of shares or units 1,138,786 7,930,358 195,816 - -
Net asset value per share or unit $1.00 $1.00 26.95 - -
December 31, 1995
ASSETS:
Allocated Investments, at fair value
(Note 4) $964,590 $7,664,924 $1,974,693 $187,632,335
Unallocated Investments, at fair value
(Note 4) 216,546,742
Participant loans receivable
5,924,390 5,924,390
- --------------------------------------------------------------------------------------------------------------
Total assets 964,590 7,664,924 1,974,693 5,924,390 410,103,467
- --------------------------------------------------------------------------------------------------------------
LIABILITIES:
Loan payable to General Re Corporation 145,723,817
- --------------------------------------------------------------------------------------------------------------
Net assets available for plan benefits
December 31, 1995 $964,590 $7,664,924 $1,974,693 $5,924,390 $264,379,650
==============================================================================================================
Number of shares or units 964,590 7,664,924 87,492 - -
Net asset value per share or unit $1.00 $1.00 22.57 - -
See Notes to Financial Statements
<PAGE>
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 informatio for
the year ended December 31, 1996
General Re General Re Templeton
Corporation Corporation Founders PIMCO PIMCO Developing Janus
Preferred Common Balanced Global High Markets Worldwide
Yield
Stock Stock Fund Fund Fund Fund Fund Fund
------------------------------------------------------------------------------
Additions to net assets attributed to:
Investment income:
Net appreciation in fair value of
investments 4,241,394 850,170 (10,457) (1,050) 5,459 11,587 (81,629)
Interest - 107,131 513 102 413 182 3,201
Dividends 10,613,824 865 31,342 2,611 11,238 16,005 166,756
------------------------------------------------------------------------------
14,855,218 958,166 21,398 1,663 17,110 27,774 88,328
------------------------------------------------------------------------------
Contributions:
Participants'
- 1,574,204 10,594 1,320 1,422 11,985 104,750
Employer's
4,303,096 - - - - - -
Loan repayments
- 352,992 971 269 1,264 724 23,240
------------------------------------------------------------------------------
Total additions
19,158,314 2,885,362 32,963 3,252 19,796 40,483 216,318
------------------------------------------------------------------------------
Deductions from net assets attributed to:
Benefits paid to participants
1,836,280 1,051,375 - - - - 1,041
Loans written
- 600,715 - - 297 56 10,941
Administrative fee
- - - - - - -
Interest expense
13,479,453 - - - - - -
------------------------------------------------------------------------------
Total deductions
15,315,733 1,652,090 - - 297 56 11,982
------------------------------------------------------------------------------
Net increase/(decrease) prior to interfund
transfers 3,842,581 1,233,272 32,963 3,252 19,499 40,427 204,336
Interfund transfers
(29,393) (3,187,089) 557,089 51,933 328,414 528,282 2,580,849
------------------------------------------------------------------------------
Net increase / (decrease)
3,813,188 (1,953,817) 590,052 55,185 347,913 568,709 2,785,185
Net assets available for benefits:
Beginning of year
124,949,956 28,608,030 - - - - -
------------------------------------------------------------------------------
End of year
$128,763,144 $26,654,213 $590,052 $55,185 $347,913 $568,709 $2,785,185
==============================================================================
4
<PAGE>
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 informatio for
the year ended December 31, 1996
(Continued)
Fidelity Fidelity Fidelity
Fidelity Equity Growth Investment Fidelity Fidelity Fidelity
Magellan Income Company Grade Intermediate Overseas Real
Estate
Fund Fund Fund Bond Fund Bond Fund Fund Fund
- -------------------------------------------------------------------------------------------------------------------------------
Additions to net assets attributed to:
Investment income:
Net appreciation in fair value of
investments (1,697,930) 2,625,513 910,476 (43,608) (312,859) 452,482 44,194
Interest 111,364 63,864 41,817 7,724 26,388 34,927 67
Dividends 5,084,192 1,547,359 488,656 77,991 666,680 481,346 3,662
- -------------------------------------------------------------------------------------------------------------------------------
3,497,626 4,236,736 1,440,949 42,107 380,209 968,755 47,923
- -------------------------------------------------------------------------------------------------------------------------------
Contributions:
Participants'
2,182,562 1,335,681 1,080,942 162,093 610,634 651,858 2,990
Employer's
- - - - - - -
Loan repayments
354,812 209,764 144,172 19,145 97,689 92,504 405
- -------------------------------------------------------------------------------------------------------------------------------
Total additions
6,035,000 5,782,181 2,666,063 223,345 1,088,532 1,713,117 51,318
- -------------------------------------------------------------------------------------------------------------------------------
Deductions from net assets attributed to:
Benefits paid to participants
1,057,309 832,463 329,079 143,798 285,593 233,365 65
Loans written
477,943 256,901 243,737 15,281 115,703 166,758 -
Administrative fee
3,056 1,896 466 137 1,745 106 76
Interest expense
- - - - - - -
- -------------------------------------------------------------------------------------------------------------------------------
Total deductions
1,538,308 1,091,260 573,282 159,216 403,041 400,229 141
- -------------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) prior to interfund
transfers 4,496,692 4,690,921 2,092,781 64,129 685,491 1,312,888 51,177
Interfund transfers
(5,178,442) 1,258,456 2,902,421 (100,846) (1,066,865) (309,083) 303,579
- -------------------------------------------------------------------------------------------------------------------------------
Net increase / (decrease)
(681,750) 5,949,377 4,995,202 (36,717) (381,374) 1,003,805 354,756
Net assets available for benefits:
Beginning of year
31,541,775 18,832,833 6,426,613 1,181,283 10,234,307 6,844,718 -
- -------------------------------------------------------------------------------------------------------------------------------
End of year $30,860,025$24,782,210$11,421,81 $1,144,566 9,852,933 $7,848,523 $354,756
===============================================================================================================================
===============================================================================================================================
5
<PAGE>
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 informatio for
the year ended December 31, 1996
(Continued)
Fidelity Fidelity Fidelity Fidelity Fidelity Fidelity
Fidelity Asset Asset Emerging Asset Small Cap Retirement
Balanced Manager Manager Markets Manager Stock Money Market
Fund Fund Growth Fund Income Fund Fund Trust
Fund
- --------------------------------------------------------------------------------------------------------------------------------
Additions to net assets attributed to:
Investment income:
Net appreciation in fair value of
investments 68,368 48,535 95,064 (1,853) 686 220,089 -
Interest
6,083 6,684 7,465 - 2,266 13,465 27,127
Dividends
99,906 111,601 149,068 1,554 14,047 102,833 613,460
- --------------------------------------------------------------------------------------------------------------------------------
174,357 166,820 251,597 (299) 16,999 336,387 640,587
- --------------------------------------------------------------------------------------------------------------------------------
Contributions:
Participants'
215,003 167,572 219,268 4,190 56,492 389,976 836,943
Employer's
- - - - - - -
Loan repayments
21,840 20,746 18,645 - 4,930 30,052 111,034
- --------------------------------------------------------------------------------------------------------------------------------
Total additions
411,200 355,138 489,510 3,891 78,421 756,415 1,588,564
- --------------------------------------------------------------------------------------------------------------------------------
Deductions from net assets attributed to:
Benefits paid to participants
174,433 49,084 9,693 - 345,890 85,916 608,769
Loans written
28,074 19,611 25,867 37 8,450 35,508 168,619
Administrative fee
515 - - 1 - 1,507 4,341
Interest expense
- - - - - - -
- --------------------------------------------------------------------------------------------------------------------------------
Total deductions
203,022 68,695 35,560 38 354,340 122,931 781,729
- --------------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) prior to interfund
transfers 208,178 286,443 453,950 3,853 (275,919) 633,484 806,835
Interfund transfers
(825,801) (181,899) (259,512) 103,764 (404) 679,889 (146,339)
- --------------------------------------------------------------------------------------------------------------------------------
Net increase / (decrease)
(617,623) 104,544 194,438 107,617 (276,323) 1,313,373 660,496
Net assets available for benefits:
Beginning of year
2,505,836 1,297,013 1,587,728 - 451,164 1,549,090 11,840,707
- --------------------------------------------------------------------------------------------------------------------------------
End of year $1,888,213 $1,401,557 1,782,166 $107,617 174,841 $2,862,463 12,501,203
================================================================================================================================
5a
<PAGE>
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 informatio for
the year ended December 31, 1996
(Continued)
Fidelity Fidelity Fidelity
Retirement Managed U.S. Equity
Government Income Index
Money Market Portfolio Portfolio Other Total
- ----------------------------------------------------------------------------------------------------------------------
Additions to net assets attributed to:
Investment income:
Net appreciation in fair value of - - 635,208 - 8,059,839
investments
Interest 2,632 27,943 11,544 - 502,902
Dividends 49,104 437,810 109,009 - 20,880,919
- ----------------------------------------------------------------------------------------------------------------------
51,736 465,753 755,761 - 29,443,660
- ----------------------------------------------------------------------------------------------------------------------
Contributions:
Participants'
78,702 489,727 800,573 - 10,989,481
Employer's
- - - - 4,303,096
Loan repayments 8,758 109,042 39,303 (1,662,301) -
- ----------------------------------------------------------------------------------------------------------------------
Total additions 139,196 1,064,522 1,595,637 (1,662,301) 44,736,237
- ----------------------------------------------------------------------------------------------------------------------
Deductions from net assets attributed to:
Benefits paid to participants 24,876 592,578 214,264 129,543 8,005,414
Loans written 31,268 125,627 57,406 (2,388,799) -
Administrative fee
428 1,749 15 - 16,038
Interest expense
- - - - 13,479,453
- ----------------------------------------------------------------------------------------------------------------------
Total deductions 56,572 719,954 271,685 (2,259,256) 21,500,905
- ----------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) prior to interfund
transfers 82,624 344,568 1,323,952 596,955 23,235,332
Interfund transfers 91,572 (79,134) 1,978,599 (40) -
- ----------------------------------------------------------------------------------------------------------------------
Net increase / (decrease) 174,196 265,434 3,302,551 596,915 23,235,332
Net assets available for benefits:
Beginning of year 964,590 7,664,924 1,974,693 5,924,390 264,379,650
- ----------------------------------------------------------------------------------------------------------------------
End of year $ 1,138,786 $7,930,358 $5,277,244 $6,521,305 $287,614,982
======================================================================================================================
</TABLE>
5b
<PAGE>
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") which is designed to comply with Section 4975(a)(7)
and the regulations thereunder of the Internal Revenue Code of 1986, as
amended (the "Code") and is subject to the applicable provisions of ERISA,
as amended. The Plan entered into a $150,000,000 term loan agreement with
the Plan sponsor, General Re Corporation. The agreement provides for the
loan to be repaid to the Company by 2014. The loan bears interest at 9.25%.
Both the principal and interest payments on the loan are due annually. 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 is obligated to make contributions in cash to
the ESOP which, together with the dividend on the Preferred Stock, equal
the amount necessary to enable the plan to make its regularly scheduled
payments of principal and interest due on its term loan. 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.
The borrowing is collateralized by the unallocated shares of stock and is
6
<PAGE>
EMPLOYEE SAVINGS AND STOCK OWNERSHIP PLAN of
GENERAL RE CORPORATION and ITS DOMESTIC SUBSIDIARIES
NOTES to FINANCIAL STATEMENTS (continued)
guaranteed by the Company. The lender has no rights against shares once
they are allocated under the ESOP. Accordingly, the financial statements of
the Plan for the years 1996 and 1995 present separately the assets and
liability and changes therein pertaining to:
(a) the accounts of employees with vested rights in allocated stock
(Allocated) and (b) stock not yet allocated to employees
(Unallocated).
During 1996, the Plan received a dividend on the Preferred Stock of
$10,613,824 and a Company contribution of $4,303,096. The Plan paid
$13,479,453 in interest expense. In 1996 and 1995, shares allocated to
employees were 50,697 and 48,990, respectively, net of retired shares of
12,129 and 10,680, respectively. There were 1,316,452 and 1,379,278 shares
of unallocated Preferred Stock at December 31, 1996 and 1995, 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 $174,951,524 at December 31,
1996.
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 1996 was $9,500.
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 $93,384 during 1996. The benefit to which a participant is
entitled is the benefit that can be provided from the participant's vested
account. Participant accounts are valued on the last business day of each
calendar quarter.
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.
7
<PAGE>
EMPLOYEE SAVINGS AND STOCK OWNERSHIP PLAN of
GENERAL RE CORPORATION and ITS DOMESTIC SUBSIDIARIES
NOTES to FINANCIAL STATEMENTS (continued)
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 9.25% to 9.75% for 1996 and were
9.5% to 10% for 1995. 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.
A description of the investment funds of the Plan, as set forth in each
Fund's prospectus, at December 31, 1996 is as follows:
o 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.
o Founders Balanced Fund
The Founders Balanced Fund is a growth and income fund. The Fund
focuses on common stocks with the potential for capital growth as well
as increased dividends. It invests in a broad variety of dividend
paying common stocks, both domestic and abroad, U.S. and foreign
government obligations and a variety of corporate bonds.
8
<PAGE>
EMPLOYEE SAVINGS AND STOCK OWNERSHIP PLAN of
GENERAL RE CORPORATION and ITS DOMESTIC SUBSIDIARIES
NOTES to FINANCIAL STATEMENTS (continued)
o PIMCO Global Fund
The PIMCO Global Fund invests between 25% and 75% of its assets in
foreign bonds with the remainder invested in U.S. Bonds. Investments in
bonds of emerging markets are also allowed but are limited by a 10%
maximum allocation to below investment grade securities. The Fund's
objective is to provide high total return that exceeds the aggregate of
major world bond markets.
o PIMCO High Yield Fund
The PIMCO High Yield Fund is an income fund. The Fund invests in
primarily U.S. dollar denominated bonds of domestic and foreign issuers
rated below investment grade but at least at B. It focuses its
investments on the relatively higher quality securities within the junk
bond ratings.
o Templeton Developing Markets Fund
The Templeton Developing Markets Fund is a growth-fund. The Fund
invests primarily in common stocks of companies in developing markets
and focuses on those developing market countries in which it believes
the economies are developing strongly.
o Janus Worldwide Fund
The Janus Worldwide Fund is a growth fund. The Fund invests primarily
in common stocks of foreign and domestic companies. It has the
flexibility to invest on a worldwide basis, in companies and
organizations of any size. The Fund normally invests in issuers from at
least five different countries.
.
o 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.
9
<PAGE>
EMPLOYEE SAVINGS AND STOCK OWNERSHIP PLAN of
GENERAL RE CORPORATION and ITS DOMESTIC SUBSIDIARIES
NOTES to FINANCIAL STATEMENTS (continued)
o 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.
o 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.
o 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.
o 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.
o 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.
10
<PAGE>
EMPLOYEE SAVINGS AND STOCK OWNERSHIP PLAN of
GENERAL RE CORPORATION and ITS DOMESTIC SUBSIDIARIES
NOTES to FINANCIAL STATEMENTS (continued)
o Fidelity Real Estate Fund
The Fidelity Real Estate Fund seeks to provide an above average level
of income, capital growth over time and a yield that exceeds that of
the S&P 500. The Fund invests primarily in stocks of domestic and
foreign companies in the real estate industry. As a result its
investments are sensitive to conditions in real estate values, property
taxes, overbuilding and interest rates.
o 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.
o 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.
o 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.
o Fidelity Emerging Markets Fund
The Fidelity Emerging Markets Fund is an international growth fund. The
Fund invests primarily in stocks of small and medium sized developing
companies with the potential to grow rapidly in earnings or revenues.
11
<PAGE>
EMPLOYEE SAVINGS AND STOCK OWNERSHIP PLAN of
GENERAL RE CORPORATION and ITS DOMESTIC SUBSIDIARIES
NOTES to FINANCIAL STATEMENTS (continued)
o 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.
o 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.
o 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.
o 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.
o 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
12
<PAGE>
EMPLOYEE SAVINGS AND STOCK OWNERSHIP PLAN of
GENERAL RE CORPORATION and ITS DOMESTIC SUBSIDIARIES
NOTES to FINANCIAL STATEMENTS (continued)
purchases high-quality, short and long-term investment contracts
(GICs), bank investment contracts, 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 guaranteed insurance
contracts are placed. However, the plan administrator does not
anticipate nonperformance by these companies.
o 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.
The number of employees participating in each fund of the Plan at December
31, 1996 and 1995 are as follows:
1996 1995
---- ----
General Re Corporation Preferred Stock 2,118 1,947
General Re Corporation Common Stock Fund 1,202 1,223
Founders Balanced Fund 55 -
PIMCO Global Fund 11 -
PIMCO High Yield Fund 18 -
Templeton Developing Markets Fund 45 -
Janus Worldwide Fund 203 -
Fidelity Magellan Fund 1,322 1,378
Fidelity Equity-Income Fund 1,034 978
Fidelity Growth Company Fund 709 552
Fidelity Investment Grade Bond Fund 169 178
Fidelity Intermediate Bond Fund 634 686
Fidelity Overseas Fund 686 677
Fidelity Real Estate Fund 35 -
Fidelity Balanced Fund 244 273
Fidelity Asset Manager Fund 104 86
Fidelity Asset Manager: Growth Fund 164 120
Fidelity Emerging Markets Fund 18 -
Fidelity Asset Manager: Income Fund 45 38
Fidelity Small Cap Stock Fund 269 166
Fidelity Retirement Money Market Portfolio 976 1,028
Fidelity Retirement Government Money Market Portfolio 93 102
Fidelity Managed Income Portfolio 518 573
Fidelity US Equity Index Portfolio 298 183
13
<PAGE>
EMPLOYEE SAVINGS AND STOCK OWNERSHIP PLAN of
GENERAL RE CORPORATION and ITS DOMESTIC SUBSIDIARIES
NOTES to FINANCIAL STATEMENTS (continued)
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 financial
statements include securities valued at $273,049,491 and $270,673,773 at
December 31, 1996 and 1995, respectively, (63% and 66% 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. 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. 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.
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. 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.
14
<PAGE>
EMPLOYEE SAVINGS AND STOCK OWNERSHIP PLAN of
GENERAL RE CORPORATION and ITS DOMESTIC SUBSIDIARIES
NOTES to FINANCIAL STATEMENTS (continued)
Employer contributions to the General Re Corporation Preferred Stock Fund
are made in shares of Preferred Stock.
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, 1996 and 1995 are summarized
as follows:
<TABLE>
<CAPTION>
1996 1995
------------------------------ -----------------
<S> <C> <C> <C> <C>
Fair Fair
Cost Value Cost Value
Founders Balanced Fund $600,812 $590,052 - -
PIMCO Global Fund 56,236 55,185 - -
PIMCO High Yield Fund 342,459 347,913 - -
Templeton Developing Markets Fund 558,132 568,709 - -
Janus Worldwide Fund 2,872,035 2,785,185 - -
Fidelity Magellan Fund 26,473,166 30,860,025 $24,722,712 $31,541,775
Fidelity Equity Income Fund 18,533,585 24,782,210 14,721,083 18,832,833
Fidelity Growth Company Fund 9,597,662 11,421,815 5,315,909 6,426,613
Fidelity Investment Grade Bond Fund 1,168,813 1,144,566 1,169,484 1,181,283
Fidelity Intermediate Bond Fund 9,976,802 9,852,933 10,055,857 10,234,307
Fidelity Overseas Fund 7,042,937 7,848,523 6,278,317 6,844,718
Fidelity Real Estate Fund 310,617 354,756 - -
Fidelity Balanced Fund 1,756,797 1,888,213 2,384,905 2,505,836
Fidelity Asset Manager Fund 1,316,876 1,401,557 1,231,348 1,297,013
Fidelity Asset Manager: Growth Fund 1,648,805 1,782,166 1,457,797 1,587,728
Fidelity Emerging Markets Fund 109,648 107,617 - -
Fidelity Asset Manager: Income Fund 172,096 174,841 425,400 451,164
Fidelity Small Cap Fund 2,633,134 2,862,463 1,480,521 1,549,090
Fidelity Retirement Money
Market Portfolio 12,501,203 12,501,203 11,840,707 11,840,707
Fidelity Retirement Government
Money Market Portfolio 1,138,786 1,138,786 964,590 964,590
Fidelity Managed Income Portfolio 7,930,358 7,930,358 7,664,924 7,664,924
Fidelity U.S. Equity Index Portfolio 4,318,280 5,277,244 1,580,475 1,974,693
General Re Corporation Preferred Stock 146,368,049 273,049,491 147,405,164 270,673,773
General Re Corporation Common Stock 17,469,695 26,654,213 18,391,686 28,608,030
---------- ---------- ------------- -------------
Total $274,896,983 $425,380,024 $257,090,879 $404,179,077
============ ============ ============ ============
</TABLE>
15
<PAGE>
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 $3,038,329 and
$2,836,829 at December 31, 1996 and 1995, respectively, and the cost basis
of participant loans for the purchase of a principal residence was
$3,482,976 and $3,087,561 at December 31, 1996 and 1995, respectively.
During 1996, the Plan's investments (including investment, bought sold, and
held during the year) appreciated in value by $8,059,839 as follows:
Net Change in Fair Value
Year Ended
Investments at Fair Value December 31, 1996
------------------------- -----------------
Founders Balanced Fund ($10,457)
PIMCO Global Fund (1,050)
PIMCO High Yield Fund 5,459
Templeton Developing Markets Fund 11,587
Janus Worldwide Fund (81,629)
Fidelity Magellan Fund (1,697,930)
Fidelity Equity Income Fund 2,625,513
Fidelity Growth Company Fund 910,476
Fidelity Investment Grade Bond Fund (43,608)
Fidelity Intermediate Bond Fund (312,859)
Fidelity Overseas Fund 452,482
Fidelity Real Estate Fund 44,197
Fidelity Balanced Fund 68,368
Fidelity Asset Manager Fund 48,535
Fidelity Asset Manager: Growth Fund 95,064
Fidelity Emerging Markets Fund 1,853
Fidelity Asset Manager: Income Fund 686
Fidelity Small Cap Fund 220,089
Fidelity Retirement Money
Market Portfolio 0
Fidelity Retirement Government
Money Market Portfolio 0
Fidelity Managed Income Portfolio 0
Fidelity U.S. Equity Index Portfolio 635,208
General Re Corporation Common Stock 850,170
Investments at Estimated Fair Value
General Re Corporation Preferred Stock 4,241,394
Total $8,059,839
16
<PAGE>
EMPLOYEE SAVINGS AND STOCK OWNERSHIP PLAN of
GENERAL RE CORPORATION and ITS DOMESTIC SUBSIDIARIES
NOTES to FINANCIAL STATEMENTS (continued)
Realized gains from securities transactions were $4,315,566 for 1996. At
December 31, 1996, the Fidelity Magellan Fund, Fidelity Equity Income 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, 1995, the Fidelity Magellan Fund, Fidelity Equity Income Fund,
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.
17
<PAGE>
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, 1996
<TABLE>
<CAPTION>
Number of Current
Shares Description Cost Value
<S> <C> <C>
(1)
Mutual Funds
55,613 Founders Balanced Fund $ 590,052
5,301 PIMCO Global Fund 55,185
31,064 PIMCO High Yield Fund 347,913
36,929 Templeton Developing Markets Fund 568,709
82,671 Janus Worldwide Fund 2,785,185
382,641 Fidelity Magellan Fund 30,860,025
578,618 Fidelity Equity Income Fund 24,782,210
282,299 Fidelity Growth Company Fund 11,421,815
160,754 Fidelity Investment Grade Bond Portfolio 1,144,566
977,474 Fidelity Intermediate Bond Fund 9,852,933
254,492 Fidelity Overseas Fund 7,848,523
19,676 Fidelity Real Estate Fund 354,,756
134,106 Fidelity Balanced Fund 1,888,213
195,816 Fidelity U.S. Equity Index Portfolio 5,277,244
85,098 Fidelity Asset Manager Fund 1,401,557
109,001 Fidelity Asset Manager: Growth Fund 1,782,166
6,475 Fidelity Emerging Markets Fund 107,617
15,060 Fidelity Asset Manager: Income Fund 174,841
211,096 Fidelity Small Cap Stock Fund 2,862,463
Money Market Funds
12,501,203 Fidelity Retirement Money 12,501,203
Market Portfolio
1,138,786 Fidelity Retirement Government 1,138,786
Money Market Portfolio
Common/Collective Trusts
7,930,358 Fidelity Managed Income Portfolio 7,930,358
Preferred Stocks
1,711,907 General Re Corporation 273,049,491
Common Stocks
2,434,175 General Re Corporation 26,654,213
Participant Loans
Residence, at cost 3,482,976
Nonresidence, at cost 3,038,329
Total $431,901,329
(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.
18
</TABLE>
<PAGE>
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, 1996
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,
1996.
<TABLE>
Aggregate Reportable Transactions
<CAPTION>
Cost of Net Gain
Description of Asset Purchases Sales Assets (1)or (Loss) (1)
- -------------------- --------- ----- ------ ---------
<S> <C> <C> <C> <C>
Fidelity Magellan Fund $8,734,611 $7,718,427
Single Reportable Transactions
</TABLE>
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.
19
