Gold Eagle Capital 2001 Ltd.

American Re Securities Corporation recently structured an issue of catastrophe-related securities to help protect the consolidated group led by its parent company, American Re Corporation, from the financial impact of a super catastrophe (in this case Midwest earthquakes or Eastern and Gulf Coast windstorms). Following from the successful placement of the first Gold Eagle cat bond in 1999, the current transaction is also structured as an issuance of Modeled Index Linked Securities (ModILS®).

ModILS® are a form of risk-linked securities. They are different from indemnity type cat bonds in that the protection they provide the (re)insurer is triggered by the size of an index of modeled insurance industry losses from specified types of catastrophic events, not by the actual losses incurred by the (re)insurer.

The ModILS® were issued pursuant to a private placement on March 29, 2001, and are scheduled to mature in April 2002. There are two different tranches of the securities that collectively provide the American Re Corporation consolidated group with $120 million of potential payments as a result of certain U.S. catastrophes. The larger tranche, the Floating Rate Modeled Index Linked Notes due April 2002, raised $116.4 million from investors.

Investors in the Notes will give up to American Re Capital Markets, Inc., a subsidiary of American Re Corporation, a portion or all of their investment depending on the level of modeled losses from actual events between now and March 31, 2002. The actual events can be either Midwest earthquakes or Eastern and Gulf Coast windstorms. The smaller, subordinate tranche is $3.6 million of redeemable Class B Shares of Gold Eagle, investors in which will also give up all of their redemption value if certain levels of modeled losses occur.