American Re-Insurance Company Licenses DxCG RiskSmartTM

BOSTON — January 7, 2005 — DxCG®, Inc., the leading provider of predictive modeling software for health care organizations, today announced that American Re HealthCare, a division of American Re-Insurance Company marketing and underwriting health care reinsurance solutions, has signed a multiyear agreement to license DxCG RiskSmartTM. Terms of the agreement were not disclosed.

American Re HealthCare will use DxCG RiskSmart in analyzing stop-loss and reinsurance pricing. The decision to license RiskSmart follows up on American Re HealthCare's research results presented at the 2004 DxCG User Conference.

"Using DxCG RiskSmart, we can refine our pricing methodologies and provide a broader range of services to our health plan clients," said Robert Bachler, vice president of American Re HealthCare. "Our studies have suggested that DxCG models have great potential for improving underwriting risk assessments and results."

"American Re's work in applying DxCG models to reinsurance risk is groundbreaking," said Marilyn Schlein Kramer, president of DxCG, Inc. "This is a tremendous opportunity for DxCG and American Re in the employer stop-loss and excess reinsurance markets."

DxCG RiskSmart combines DxCG's Diagnostic Cost Groups (DCG) and RxGroups® models with business analytics to meet the specific business needs of the health care industry. Employers, providers, health plans/insurers and government agencies across the U.S. and around the world are extensively using DxCG models to improve the management, financing and quality of health care.

About American Re HealthCare
American Re HealthCare provides a broad range of health care reinsurance solutions to reinsurance intermediaries, managing general underwriters, third-party administrators and primary insurance carriers. It is a division of, and underwrites on behalf of, American Re-Insurance Company. American Re Corporation, a member of the Munich Re Group, is one of the leading providers of reinsurance in the United States. Through its subsidiaries, it writes treaty and facultative reinsurance, insurance, and provides related services to insurance companies, other large businesses, government agencies, pools and other self-insurers. The Munich Re Group, whose business also includes primary insurance and asset management, has a preeminent position in the global reinsurance industry. It is headed by Munich Reinsurance Company of Munich, Germany, and includes reinsurance subsidiaries, branches, service companies and liaison offices in more than 60 locations worldwide, serving insurers in more than 150 countries.

About DxCG®, Inc.
DxCG, a unit of ISO, promotes fair and efficient health care by providing software solutions to more accurately plan, budget and evaluate health care management programs. DxCG has more than 175 clients, covering over 75 million lives in the U.S. and abroad. The company's Diagnostic Cost Groups (DCG) and RxGroups® predictive models are used to negotiate health-based payments, identify opportunities for disease management, profile physicians and evaluate managed care programs. Recognized by leading independent researchers as the most proven models available, DxCG's methodologies are used by the federal government to set payment rates for Medicare.

About ISO
ISO is a leading provider of products and services that help measure, manage and reduce risk. ISO provides data, analytics and decision-support solutions to professionals in many fields, including insurance, finance, real estate, health services, government and human resources. Professionals use ISO's databases and services to classify and evaluate a variety of risks and detect potential fraud. In the U.S. and around the world, ISO's services help customers protect people, property and financial assets.

Release: Immediate

Stephanie Martinovich (DxCG, Inc.)
(617) 896-5919

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