-- announced on Friday that CRC Capital, Cap Re's corporate name at Lloyd's, will not be supporting the underwriting of RGB Syndicate 490 for the year 2000 underwriting year.

Partially as a result of this withdrawal of capacity, RGB Agencies, Ltd. has ceased underwriting on behalf of Syndicate 490. In connection with these actions, Cap Re will be taking a third quarter charge of $15 million, which is attributable to the expenses related to the cessation of underwriting.

In addition, Cap Re will strengthen its reserves in the third quarter against future adverse underwriting development of Syndicate 490 by $35 million.

Cap Re is a specialty reinsurance group providing innovative solutions to problems of financial risk and management. Capital Re's two principal divisions, financial guaranty and financial risk, are engaged in the business of municipal and non-municipal financial guaranty reinsurance, mortgage guaranty reinsurance, title reinsurance, trade credit reinsurance and financial solutions.