UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
|X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTER ENDED SEPTEMBER 30, 1998
OR
|_| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period From _________ to ________
Commission File Number 1-10545
-------
TRANSATLANTIC HOLDINGS, INC.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 13-3355897
- ------------------------------- ----------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
80 Pine Street, New York, New York 10005
- --------------------------------------- ----------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 770-2000
----------------
NONE
- --------------------------------------------------------------------------------
Former name, former address and former fiscal year, if changed since last
report.
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
YES |X| NO |_|
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of September 30, 1998 34,652,464
------------
<PAGE>
TRANSATLANTIC HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
As of September 30, 1998 and December 31, 1997
<TABLE>
<CAPTION>
(Unaudited)
1998 1997
----------- -----------
ASSETS (in thousands, except share data)
<S> <C> <C>
Investments and cash:
Fixed maturities:
Bonds held to maturity, at amortized cost (market value: 1998-$1,246,146;
1997-$1,313,382) $ 1,151,697 $ 1,230,015
Bonds available for sale, at market value (amortized cost: 1998-$2,326,318;
1997-$2,145,717) 2,424,783 2,210,910
Equities:
Common stocks available for sale, at market value (cost: 1998-$344,784;
1997-$289,701) 430,470 458,153
Nonredeemable preferred stocks available for sale, at market value
(cost: 1998-$57,975; 1997-$5,014) 56,944 5,973
Other invested assets 76,164 --
Short-term investments, at cost which approximates market value 14,659 16,731
Cash and cash equivalents 100,318 70,737
----------- -----------
Total investments and cash 4,255,035 3,992,519
Accrued investment income 74,079 70,799
Premium balances receivable, net 220,753 188,816
Reinsurance recoverable on paid and unpaid losses and loss adjustment expenses:
Affiliates 208,270 189,690
Other 273,723 212,475
Deferred acquisition costs 68,989 64,752
Prepaid reinsurance premiums 33,210 22,056
Deferred income taxes 86,351 71,981
Other assets 28,691 21,892
----------- -----------
Total assets $ 5,249,101 $ 4,834,980
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Unpaid losses and loss adjustment expenses $ 3,075,092 $ 2,918,782
Unearned premiums 397,234 366,640
Reinsurance balances payable 176,358 124,365
Current income taxes payable 18,592 19,531
Other liabilities 59,413 49,003
----------- -----------
Total liabilities 3,726,689 3,478,321
----------- -----------
Commitments and contingent liabilities
Preferred Stock, $1.00 par value; shares authorized: 5,000,000 -- --
Common Stock, $1.00 par value; shares authorized: 50,000,000;
shares issued: 1998-35,452,464; 1997-35,362,870 35,452 35,363
Additional paid-in capital 198,043 195,494
Accumulated other comprehensive income 126,331 140,724
Retained earnings 1,172,586 995,078
Treasury Stock, at cost; 800,000 shares (10,000) (10,000)
----------- -----------
Total stockholders' equity 1,522,412 1,356,659
----------- -----------
Total liabilities and stockholders' equity $ 5,249,101 $ 4,834,980
=========== ===========
The accompanying notes are an integral part of the condensed consolidated financial statements.
</TABLE>
- 1 -
<PAGE>
TRANSATLANTIC HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
1998 1997 1998 1997
----------- ---------- ------------ -----------
(in thousands, except per share data)
<S> <C> <C> <C> <C>
Income:
Net premiums written $ 379,094 $ 352,912 $ 1,041,830 $ 965,808
Increase in net unearned premiums (16,179) (19,733) (24,271) (42,418)
----------- ----------- ----------- -----------
Net premiums earned 362,915 333,179 1,017,559 923,390
Net investment income 56,324 53,025 165,598 154,060
----------- ----------- ----------- -----------
419,239 386,204 1,183,157 1,077,450
----------- ----------- ----------- -----------
Expenses:
Net losses and loss adjustment expenses 283,862 249,118 761,812 684,705
Net commissions 90,297 77,840 245,694 217,265
Other operating expenses 12,069 10,785 34,784 31,314
Increase in deferred acquisition costs (3,334) (3,391) (4,237) (7,759)
----------- ----------- ----------- -----------
382,894 334,352 1,038,053 925,525
----------- ----------- ----------- -----------
36,345 51,852 145,104 151,925
Realized net capital gains 69,414 9,183 106,030 17,560
----------- ----------- ----------- -----------
Operating income 105,759 61,035 251,134 169,485
Other deductions (71) (330) (503) (1,289)
----------- ----------- ----------- -----------
Income before income taxes 105,688 60,705 250,631 168,196
Income taxes 27,002 12,749 59,447 35,475
----------- ----------- ----------- -----------
Net income $ 78,686 $ 47,956 $ 191,184 $ 132,721
=========== =========== =========== ===========
Net income per common share:
Basic $ 2.27 $ 1.39 $ 5.52 $ 3.84
Diluted 2.25 1.38 5.48 3.82
Dividends per common share -- 0.10 0.21 0.29
Weighted average common shares outstanding:
Basic 34,650 34,551 34,629 34,542
Diluted 34,895 34,793 34,860 34,734
The accompanying notes are an integral part of the condensed consolidated financial statements.
</TABLE>
- 2 -
<PAGE>
TRANSATLANTIC HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Nine Months Ended September 30, 1998 and 1997
(Unaudited)
<TABLE>
<CAPTION>
1998 1997
--------- ---------
(in thousands)
<S> <C> <C>
Net cash provided by operating activities $ 199,476 $ 241,995
--------- ---------
Cash flows from investing activities:
Proceeds of bonds available for sale sold 266,449 262,853
Proceeds of bonds held to maturity redeemed 81,573 48,024
Proceeds of bonds available for sale redeemed or matured 176,342 188,640
Proceeds of equities sold 299,136 91,483
Purchase of bonds held to maturity -- (175,834)
Purchase of bonds available for sale (613,401) (635,289)
Purchase of equities (306,739) (100,310)
Purchase of other invested assets (76,513) --
Net proceeds of short-term investments 2,005 42,492
Change in payable for securities in course of settlement 18,139 (9,098)
Other, net -- (75)
--------- ---------
Net cash used in investing activities (153,009) (287,114)
--------- ---------
Cash flows from financing activities:
Dividends to stockholders (10,737) (10,020)
Proceeds from common stock issued 2,638 850
Net (disbursements) proceeds from reinsurance deposits (6,914) 49,881
Other -- 4,100
--------- ---------
Net cash from financing activities (15,013) 44,811
--------- ---------
Effect of exchange rate changes on cash and cash equivalents (1,873) (4,575)
--------- ---------
Change in cash and cash equivalents 29,581 (4,883)
Cash and cash equivalents, beginning of period 70,737 77,523
--------- ---------
Cash and cash equivalents, end of period $ 100,318 $ 72,640
========= =========
The accompanying notes are an integral part of the condensed consolidated financial statements.
</TABLE>
- 3 -
<PAGE>
TRANSATLANTIC HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1998
(Unaudited)
1. General
The condensed consolidated financial statements are unaudited, but have
been prepared on the basis of generally accepted accounting principles and, in
the opinion of management, reflect all adjustments (consisting of normal
accruals) necessary for a fair presentation of results for such periods. Certain
reclassifications have been made to conform the prior year's presentations with
1998. The results of operations and cash flows for any interim period are not
necessarily indicative of results for the full year.
2. Per Common Share Information
Net income per common share for the periods presented has been computed
below in accordance with Statement of Financial Accounting Standards (SFAS) No.
128, "Earnings Per Share," and is based on the weighted average number of common
shares outstanding.
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
1998 1997 1998 1997
-------- -------- -------- --------
(in thousands, except per share data)
<S> <C> <C> <C> <C>
Net income (numerator) $ 78,686 $ 47,956 $191,184 $132,721
======== ======== ======== ========
Weighted average common shares
outstanding used in the computation
of net income per share:
Average shares issued 35,450 35,351 35,429 35,342
Less: Average shares in treasury 800 800 800 800
-------- -------- -------- --------
Average outstanding shares - basic (denominator) 34,650 34,551 34,629 34,542
Average potential shares, principally stock options 245 242 231 192
-------- -------- -------- --------
Average outstanding shares - diluted (denominator) 34,895 34,793 34,860 34,734
======== ======== ======== ========
Net income per common share:
Basic $ 2.27 $ 1.39 $ 5.52 $ 3.84
Diluted 2.25 1.38 5.48 3.82
</TABLE>
- 4 -
<PAGE>
3. Reinsurance
Premiums written and earned and losses and loss adjustment expenses
incurred were comprised of the following:
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
1998 1997 1998 1997
----------- ----------- ----------- -----------
(in thousands)
<S> <C> <C> <C> <C>
Gross premiums written $ 440,772 $ 380,841 $ 1,173,235 $ 1,069,273
Reinsurance ceded (61,678) (27,929) (131,405) (103,465)
----------- ----------- ----------- -----------
Net premiums written $ 379,094 $ 352,912 $ 1,041,830 $ 965,808
=========== =========== =========== ===========
Gross premiums earned $ 416,481 $ 364,871 $ 1,137,810 $ 1,026,643
Reinsurance ceded (53,566) (31,692) (120,251) (103,253)
----------- ----------- ----------- -----------
Net premiums earned $ 362,915 $ 333,179 $ 1,017,559 $ 923,390
=========== =========== =========== ===========
Gross incurred losses and
loss adjustment expenses $ 357,092 $ 265,922 $ 880,093 $ 755,376
Reinsurance ceded (73,230) (16,804) (118,281) (70,671)
----------- ----------- ----------- -----------
Net losses and loss
adjustment expenses $ 283,862 $ 249,118 $ 761,812 $ 684,705
=========== =========== =========== ===========
</TABLE>
4. Income Taxes
Income taxes paid, net, in the third quarter totaled $31,394,000 and
$19,147,000 in 1998 and 1997, respectively. For the 1998 and 1997 nine month
periods, income taxes paid, net, totaled $66,611,000 and $36,526,000,
respectively.
5. Comprehensive Income
Transatlantic Holdings, Inc. and subsidiaries adopted SFAS No. 130,
"Reporting Comprehensive Income," in the first quarter of 1998 and has
reclassified certain 1997 data to also reflect its provisions. In 1997, amounts
reported separately for net unrealized appreciation of investments, net of
taxes, and net unrealized currency translation (loss) gain, net of taxes, are
now included as components of accumulated other comprehensive income in the
stockholders' equity section of the balance sheet.
- 5 -
<PAGE>
The calculation of comprehensive income is as follows:
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
1998 1997 1998 1997
----------- ----------- ----------- -----------
(in thousands)
<S> <C> <C> <C> <C>
Net Income $ 78,686 $ 47,956 $ 191,184 $ 132,721
----------- ----------- ----------- -----------
Other comprehensive income:
Net unrealized appreciation (depreciation) of investments,
net of taxes (QTR:1998-$(22,740); 1997-$13,648),
(YTD:1998-$(18,258); 1997-$28,942) (42,231) 25,345 (33,909) 53,749
Net unrealized currency translation (loss) gain,
net of taxes (QTR:1998-$7,437; 1997-$(2,293)),
(YTD:1998-$10,506; 1997-$(6,040)) 13,813 (4,259) 19,516 (11,217)
----------- ----------- ----------- -----------
Other comprehensive income (28,418) 21,086 (14,393) 42,532
----------- ----------- ----------- -----------
Comprehensive income $ 50,268 $ 69,042 $ 176,791 $ 175,253
=========== =========== =========== ===========
</TABLE>
6. Additional Information
For further information, refer to the Transatlantic Holdings, Inc. Form
10-K filing for the year ended December 31, 1997 and Form 10-Q filings for the
first two quarters of 1998.
- 6 -
<PAGE>
TRANSATLANTIC HOLDINGS, INC. AND SUBSIDIARIES
---------------------------------------------
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
-------------------------------------------------------------
AND FINANCIAL CONDITION
-----------------------
SEPTEMBER 30, 1998
------------------
OPERATIONAL REVIEW. The following table presents net premiums written, net
premiums earned and net investment income for the periods indicated:
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------------------- ---------------------------------
1998 1997 % Change 1998 1997 % Change
-------------------------------- ---------------------------------
(dollars in millions)
<S> <C> <C> <C> <C> <C> <C>
Net premiums written $ 379.1 $ 352.9 7.4% $1,041.8 $ 965.8 7.9%
Net premiums earned 362.9 333.2 8.9 1,017.6 923.4 10.2
Net investment income 56.3 53.0 6.2 165.6 154.1 7.5
</TABLE>
Net premiums written for the third quarter and first nine months of 1998
exceeded the same 1997 periods as a result of increases in domestic and
international treaty business. With respect to the third quarter, the most
significant domestic increases were recorded in specialty casualty classes
(particularly directors' and officers', other professional liability and medical
malpractice lines), partially offset by a decrease in homeowners multiple peril.
Internationally, increases were recorded in automobile lines. For the nine month
periods, domestic net premiums written increased in specialty casualty classes
(particularly directors' and officers', other professional liability and
accident and health lines) and in the automobile liability line, partially
offset by a decrease in homeowners multiple peril. Internationally, the most
significant increases were recorded in the automobile liability, automobile
physical damage and aircraft lines. International business represented 48
percent of worldwide net premiums written for the first nine months of 1998
compared to 49 percent for the same 1997 period. The reinsurance marketplace
worldwide remained highly competitive.
The increase in net investment income for the third quarter and first nine
months of 1998 versus the comparable 1997 periods resulted from continued
investment of positive operating cash flow.
The following table presents loss and loss adjustment expense ratios,
underwriting expense ratios and combined ratios for the periods indicated:
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ ------------------
1998 1997 1998 1997
------------------ ------------------
<S> <C> <C> <C> <C>
Loss and loss adjustment
expense ratio 78.2 74.8 74.9 74.2
Underwriting expense ratio 27.0 25.1 26.9 25.7
Combined ratio 105.2 99.9 101.8 99.9
</TABLE>
The loss and loss adjustment expense ratio and the combined ratio for the
1998 periods include pre-tax losses from Hurricane Georges, which occurred in
the third quarter of 1998, totaling $20 million. Excluding the impact of these
losses, the third quarter and nine months 1998 combined ratios would have been
99.7 and 99.8, respectively. There were no significant catastrophe losses in the
1997 periods. The increased underwriting expense ratios in the 1998 periods were
due, in large part, to a slight change in the business mix which caused the
commission component of those ratios to rise.
- 7 -
<PAGE>
TRANSATLANTIC HOLDINGS, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS - CONT'D
SEPTEMBER 30, 1998
Realized net capital gains on the disposition of investments totaled $69.4
million in the third quarter of 1998 compared with $9.2 million for the same
period of 1997. For the first nine months of 1998 and 1997, realized net capital
gains totaled $106.0 million and $17.6 million, respectively. The high level of
realized capital gains in the third quarter and first nine months of 1998
resulted principally from the strategic realignment of the equity portfolio in
the 1998 third quarter.
Income before income taxes in the third quarter of 1998 increased 74.1
percent to $105.7 million from $60.7 million recorded in the same 1997 period.
For the first nine months of 1998, income before income taxes totaled $250.6
million versus $168.2 million in the comparable prior year period, an increase
of 49.0 percent. The increases in income before income taxes in the 1998 periods
versus comparable prior year amounts are primarily due to the previously
discussed increased realized net capital gains and net investment income offset,
in part, by increased underwriting losses caused by the impact of Hurricane
Georges, all as reported in the 1998 periods.
The effective tax rates for the third quarter and first nine months of
1998 were 25.5 percent and 23.7 percent, respectively, versus 21.0 percent and
21.1 percent for the comparable 1997 periods. The increased effective tax rates
in 1998 result from the fact that tax exempt income represented a lower
percentage of income before income taxes in the 1998 periods. In such periods,
income before income taxes was significantly increased by the higher level of
realized capital gains offset, in part, by incurred losses from Hurricane
Georges.
Net income in the third quarter and first nine months of 1998 includes an
after-tax charge related to Hurricane Georges of $13.0 million, or $0.37 per
common share (diluted). In addition, third quarter net income includes realized
capital gains, net of income taxes, of $45.1 million, or $1.29 per common share
(diluted), and $6.0 million, or $0.17 per common share (diluted), in 1998 and
1997, respectively. For the nine month periods of 1998 and 1997, realized
capital gains, net of income taxes, totaled $68.9 million, or $1.97 per common
share (diluted), and $11.4 million, or $0.33 per common share (diluted),
respectively.
Net income in the third quarter of 1998 increased 64.1 percent to $78.7
million compared with $48.0 million in the same period of 1997. On a diluted per
common share basis, net income for the third quarters of 1998 and 1997 were
$2.25 and $1.38, respectively. For the first nine months of 1998, net income
increased 44.0 percent to $191.2 million versus $132.7 million for the
comparable prior year period. On a diluted per common share basis, net income
was $5.48 and $3.82 for the first nine months of 1998 and 1997, respectively.
Reasons for the increases are as discussed above.
In October 1998, the Board of Directors declared a quarterly dividend of
$0.11 per common share to stockholders of record as of December 4, 1998, payable
on December 18, 1998.
FINANCIAL CONDITION AND LIQUIDITY. Stockholders' equity totaled $1,522.4
million at September 30, 1998, an increase of $165.8 million from year-end 1997.
The increase in stockholders' equity is primarily composed of net income of
$191.2 million, partially offset by a decrease in accumulated other
comprehensive income of $14.4 million (consisting of a reduction in net
unrealized appreciation of investments, net of taxes, of $33.9 million,
partially offset by net unrealized currency translation gain, net of taxes, of
$19.5 million) less dividends of $7.3 million.
- 8 -
<PAGE>
TRANSATLANTIC HOLDINGS, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS - CONT'D
SEPTEMBER 30, 1998
The reduction in net unrealized appreciation of investments, net of tax,
resulted, in large part, from the realization as capital gains of a significant
amount of previously unrealized appreciation of common stocks available for sale
offset, in part, by an increase in unrealized appreciation of bonds. (See Note 5
of Notes to Condensed Consolidated Financial Statements.)
For the nine month periods, 1998 operating cash flow was less than 1997,
due, in large part, to taxes paid in 1998 related to the significantly higher
level of realized capital gains. Management believes that the liquidity of
Transatlantic Holdings, Inc. and subsidiaries (hereinafter TRH or the Company)
has not materially changed since the end of 1997.
OTHER MATTERS. The Year 2000 (Y2K) issue arises from the historic usage of
two, rather than four, digit date fields in computer equipment, software
packages and other devices using embedded chip technology, causing a date field
"00" to be recognized as the year 1900, rather than the year 2000. Failure to
recognize, repair or replace affected devices and systems could cause systems
failures or other disruptions resulting in, among other things, an inability to
process transactions, collect premiums, pay invoices or engage in similar normal
business activities.
Most TRH systems and software packages were installed or purchased within
the last five years, when the Y2K issue had already been identified and was
usually a consideration in the development process. TRH has taken steps to
identify its significant systems and programs, new and existing, hardware and
software information technology (IT) as well as non-IT (e.g. telephone systems,
fax machines and copiers), where Y2K failures could surface, and has conducted
appropriate testing and effectuated remedial changes. Most critical systems are
already Y2K compliant. TRH will continue, however, to monitor, remediate and
internally certify its systems as compliant through early 1999. The costs
associated with this process, which are expensed as incurred, have not had and
are not expected to have a material effect on net income, financial position,
cash flows or other non-Y2K IT projects and initiatives.
In addition, TRH has identified those ceding companies, brokers,
reinsurers, vendors and other business partners (collectively, "third parties")
that are significant to its business and has asked each to advise on the steps
they are taking to address the Y2K issue. Responses have been received from many
and follow-ups will be sent to those who fail to respond or whose responses are
not satisfactory. The completion of these activities and corrective actions,
where necessary, will continue through early 1999.
TRH does not presently believe Y2K issues pose significant operational
problems. However, there can be no assurance that unresolved Y2K issues of third
parties will not have a material adverse impact on the Company's operations or
financial results. TRH is considering the effects of potential unresolved Y2K
issues of third parties on its business and will develop contingency plans, as
necessary. Such plans may include the selection of alternate third parties or
other actions designed to mitigate the effects of a third party's lack of
preparedness.
- 9 -
<PAGE>
TRANSATLANTIC HOLDINGS, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS - CONT'D
SEPTEMBER 30, 1998
Any statements contained in this discussion that are not historical facts,
or that might be considered an opinion or projection, whether expressed or
implied, are meant as, and should be considered, a forward-looking statement as
that term is defined in the Private Securities Litigation Reform Act of 1995.
Forward-looking statements, which are included in the above discussion of the
Y2K issue, are based on assumptions and opinions concerning a variety of known
and unknown risks. If any assumptions or opinions prove incorrect, any
forward-looking statements made on that basis may also prove materially
incorrect.
On January 1, 1999, certain of the member nations of the European Economic
and Monetary Union (EMU) will adopt a common currency, the Euro. Once the
national currencies are phased out, the Euro will be the sole legal tender of
each of these nations. During the transition period, commerce of these nations
will be transacted in the Euro or in the currently existing national currency.
TRH has identified the significant issues and will be prepared with
respect to the phase-in of ultimate redenomination to the Euro. Any costs
associated with the adoption of the Euro are expensed as incurred and are not
material to TRH's net income, financial position or cash flows.
- 10 -
<PAGE>
PART II - OTHER INFORMATION
---------------------------
ITEM #6 - EXHIBITS AND REPORTS ON FORM 8-K
- ------------------------------------------
(a) Exhibits
See accompanying Exhibit index.
(b) There were no reports on form 8-K for the three months ended
September 30, 1998.
Omitted from this Part II are items which are inapplicable or to which the
answer is negative for the period covered.
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
TRANSATLANTIC HOLDINGS, INC.
----------------------------
(Registrant)
/s/ STEVEN S. SKALICKY
--------------------------------------------------
Steven S. Skalicky
On behalf of the registrant and in his capacity as
Executive Vice President - Chief Financial Officer
(Principal Financial and Accounting Officer)
Dated November 13, 1998
- 11 -
<PAGE>
EXHIBIT INDEX
-------------
Exhibit
Number Description Location
- ------ ----------- --------
27.0 Financial data schedule Provided herewith.
- 12 -
<TABLE> <S> <C>
<ARTICLE> 7
<LEGEND>
TRANSATLANTIC HOLDINGS, INC. AND SUBSIDIARIES
FINANCIAL DATA SCHEDULE
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
TRANSATLANTIC HOLDINGS, INC.'S FORM 10-Q FOR THE PERIOD ENDED SEPTEMBER 30, 1998
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. (IN
THOUSANDS, EXCEPT PER SHARE AMOUNTS)
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<DEBT-HELD-FOR-SALE> 2,424,783
<DEBT-CARRYING-VALUE> 1,151,697
<DEBT-MARKET-VALUE> 1,246,146
<EQUITIES> 487,414
<MORTGAGE> 0
<REAL-ESTATE> 0
<TOTAL-INVEST> 4,154,717
<CASH> 100,318
<RECOVER-REINSURE> 481,993
<DEFERRED-ACQUISITION> 68,989
<TOTAL-ASSETS> 5,249,101
<POLICY-LOSSES> 3,075,092
<UNEARNED-PREMIUMS> 397,234
<POLICY-OTHER> 0
<POLICY-HOLDER-FUNDS> 0
<NOTES-PAYABLE> 0
0
0
<COMMON> 35,452
<OTHER-SE> 1,486,960
<TOTAL-LIABILITY-AND-EQUITY> 5,249,101
1,017,559
<INVESTMENT-INCOME> 165,598
<INVESTMENT-GAINS> 106,030
<OTHER-INCOME> (503)
<BENEFITS> 761,812
<UNDERWRITING-AMORTIZATION> (4,237)
<UNDERWRITING-OTHER> 280,478
<INCOME-PRETAX> 250,631
<INCOME-TAX> 59,447
<INCOME-CONTINUING> 191,184
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 191,184
<EPS-PRIMARY> 5.52
<EPS-DILUTED> 5.48
<RESERVE-OPEN> 0
<PROVISION-CURRENT> 0
<PROVISION-PRIOR> 0
<PAYMENTS-CURRENT> 0
<PAYMENTS-PRIOR> 0
<RESERVE-CLOSE> 0
<CUMULATIVE-DEFICIENCY> 0
</TABLE>
