[OBJECT OMITTED]

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    Form 10-Q

            QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended           June 30, 1998
                                 ------------------------------

Commission file number                      1-8026
                                 ------------------------------   
OBJECT OMITTED]
                             GENERAL RE CORPORATION

             (Exact name of registrant as specified in its charter)

       DELAWARE                                              06-1026471
     -----------                                            ------------
(State or other jurisdiction of                           (I.R.S. Employer
 incorporation or organization)                          Identification No.)

  Financial Centre, P.O. Box 10350
      Stamford, Connecticut                                    06904-2350
      ---------------------                                    ----------
(Address of principal executive offices)                       (Zip Code)

Registrant's telephone number, with area code                (203) 328-5000
                                                          --------------------

                                      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 the latest practicable date.
                 Class                          Outstanding at June 30, 1998

     Common Stock, $.50 par value                     75,652,487 Shares
---------------------------------------        --------------------------------


[OBJECT OMITTED]

                             GENERAL RE CORPORATION

                                      INDEX



PART I.  FINANCIAL INFORMATION


                                                                     PAGE
Item 1.    Financial Statements

           Consolidated Statements of Income
           Three and six months ended June 30, 1998 and 1997           3

           Consolidated Statements of Comprehensive Income
           Six months ended June 30, 1998 and 1997                     4

           Consolidated Balance Sheets
           June 30, 1998 and December 31, 1997                         5

           Consolidated Statements of Common Shareowners' Equity
           Six months ended June 30, 1998 and 1997                     6

           Consolidated Statements of Cash Flows
           Six months ended June 30, 1998 and 1997                     7

           Notes to Consolidated Interim Financial Statements          8

Item 2.    Management's Discussion and Analysis of
           Financial Condition and Results of Operations              11


PART II.  OTHER INFORMATION


Item 6. Exhibits and Reports on Form 8-K

           Reports on Form 8-K                                        21

           Exhibit 27  -  Financial Data Schedule                     23









                                                              2


                             GENERAL RE CORPORATION
                        Consolidated Statements of Income
                      (in millions, except per share data)

                                                (Unaudited)
                                   --------------------------------------
                                   Three Months Ended    Six Months Ended
                                         June 30,            June 30,
                                         --------            --------
                                      1998     1997       1998      1997
                                      ----     ----       ----      ----
Premiums and other revenues

Net premiums written
     Property/casualty                $1,399   $1,551     $2,486    $2,814
     Life/health                         295      284        619       582
                                       -----  -------    -------   -------
Total net premiums written            $1,694   $1,835     $3,105    $3,396
                                      ======   ======     ======    ======

Net premiums earned
     Property/casualty                $1,185   $1,389     $2,352    $2,759
     Life/health                         287      280        594       566
                                       -----   ------     ------    ------
Total net premiums earned              1,472    1,669      2,946     3,325

Investment income                        323      316        645       634
Other revenues                           111       96        204       183
Net realized gains (losses)              (3)      (7)         34         4
                                       -----    -----      -----      ----

     Total revenues                    1,903    2,074      3,829     4,146
                                       -----    -----      -----     -----

Expenses

Claims and claim expenses                794      962      1,576     1,929
Life/health benefits                     206      207        429       407
Acquisition costs                        339      372        683       726
Other operating costs and expenses       214      203        399       409
Goodwill amortization                      7        7         14        14
                                       -----    -----      -----     -----

     Total expenses                    1,560    1,751      3,101     3,485
                                       -----    -----      -----     -----

     Income before income taxes and
         minority interest               343      323        728       661

Income tax expense                        74       74        170       155
                                          --       --        ---       ---

     Income before minority interest     269      249        558       506

Minority interest                         15       16         32        29
                                          --       --         --        --

     Net income                         $254     $233       $526      $477
                                        ====     ====       ====      ====

Share Data:

Net income per common share:
         Basic                         $3.32    $2.88      $6.81     $5.85
                                       =====    =====      =====     =====
         Diluted                       $3.22    $2.81      $6.62     $5.72
                                       =====    =====      =====     =====

Average common shares outstanding:
         Basic                      76,023,316 80,114,284 76,505,750 80,603,471
                                    ========== ========== ========== ==========
         Diluted                    78,815,591 82,522,691 79,241,691 82,970,201
                                    ========== ========== ========== ==========

Dividend per share to common
    shareowners                       $ .59     $ .55      $1.18      $1.10
                                      =====     =====      =====      =====

           See notes to the consolidated interim financial statements.
                                        3


<PAGE>


                             GENERAL RE CORPORATION
                 Consolidated Statements of Comprehensive Income
                        (in millions, except share data)



                                                            (Unaudited)
                                                         Six months ended
                                                              June 30,

                                                        1998           1997
                                                        ----           ----



Net income                                               $526           $477

Unrealized appreciation (depreciation) of
   investments, after tax:

      Common equities                                     328            335

     Preferred equities                                     5             10

     Fixed maturities                                      19            (21)

     Less:   Reclassification for prior periods'
             appreciation included in current
             period's realized gains                      (40)           -

Foreign currency translation gains (losses)               (12)            37
                                                         -----          -----

         Comprehensive income                            $826           $838
                                                         ====           ====



Share data:

Comprehensive income per diluted common share          $10.41         $10.06
                                                       ======         ======


















           See notes to the consolidated interim financial statements.
                                        4

                             GENERAL RE CORPORATION
                           Consolidated Balance Sheets
                        (in millions, except share data)

                                                     (Unaudited)
Assets                                              June 30, 1998  Dec. 31, 1997
                                                    -------------  -------------
Insurance investments:
  Fixed maturities, available-for-sale (cost:
   $15,726 in 1998; $15,859 in 1997)                     $16,773       $16,847
  Preferred equities, at fair value (cost
   $871 in 1998; $980 in 1997)                               938         1,041
  Common equities, at fair value (cost:
   $2,122 in 1998; $2,098 in 1997)                         5,337         4,748
  Short-term investments, at amortized cost
   which approximates fair value                             923         1,172
  Other invested assets                                      785           768
                                                         -------      --------
     Total insurance investments                          24,756        24,576
Cash                                                         222           193
Accrued investment income                                    328           358
Accounts receivable                                        2,216         1,858
Funds held by reinsured companies                            436           488
Reinsurance recoverable                                    2,490         2,706
Deferred acquisition costs                                   513           476
Goodwill                                                     943           968
Other assets                                                 785           962
Financial services assets:
     Investment securities, at fair value (cost:
      $1,152 in 1998; $790 in 1997)                        1,156           792
     Trading securities, at fair value (cost:
      $2,291 in 1998; $1,908 in 1997)                      2,324         1,859
     Short-term investments, at fair value                   209           129
     Cash                                                     71           159
     Trading account assets                                5,282         4,313
     Securities purchased under agreements to resell         563           903
     Other assets                                            968           719
                                                         -------    ----------
         Total assets                                    $43,262       $41,459
                                                         =======       =======

Liabilities
Claims and claim expenses                                $15,646       $15,797
Policy benefits for life/health contracts                    971           907
Unearned premiums                                          2,003         1,874
Other reinsurance balances                                 2,619         2,948
Commercial paper                                              50            -
Notes payable                                                284           285
Income taxes                                               1,361         1,104
Other liabilities                                            848           997
Minority interest                                          1,001         1,032
Financial services liabilities:
     Securities sold under agreements to repurchase,
      at contract value                                    1,303         1,030
     Securities sold but not yet purchased, at
      market value                                           970         1,190
     Trading account liabilities                           4,243         3,664
     Commercial paper                                      1,021           689
     Notes payable                                         1,173           746
     Other liabilities                                     1,288         1,032
                                                         -------       -------
         Total liabilities                                34,781        33,295
                                                          ------        ------

Cumulative convertible preferred stock (shares
 issued: 1,693,181 in 1998 and 1,700,231 in 1997;
 no par value)                                               144           145
Loan to employee savings and stock ownership plan           (142)         (142)
                                                         -------       -------
                                                               2             3
                                                         -------     ---------
Common Shareowners' Equity
Common stock (102,827,344 shares issued in 1998
 and 1997; par value $.50)                                    51            51
Paid-in capital                                            1,153         1,109
Accumulated other comprehensive income, net of
 deferred income taxes                                     2,718         2,418
Retained earnings                                          7,923         7,492
Less common stock in treasury, at cost (shares
 held:  27,174,857 in 1998 and 25,393,840 in 1997)        (3,366)       (2,909)
                                                         -------      --------
         Total common shareowners' equity                  8,479         8,161
                                                         -------       -------
         Total liabilities, cumulative convertible
          preferred stock and common shareowners' equity $43,262       $41,459
                                                         =======       =======

           See notes to the consolidated interim financial statements.
                                        5


<PAGE>


                             GENERAL RE CORPORATION
              Consolidated Statements of Common Shareowners' Equity
                                  (in millions)
                                                           (Unaudited)
                                                         Six months ended
                                                             June 30,
                                                       1998            1997
                                                       ----            ----
Common stock:
    Beginning of period                                 $51             $51
    Change for the period                                 -               -
                                                        ---             ---
       End of period                                     51              51
                                                         --              --

Paid-in capital:
    Beginning of period                               1,109           1,041
    Stock issued under stock option and other 
     incentive arrangements                              29              23
    Other                                                15               8
                                                      -----           -----
       End of period                                  1,153           1,072
                                                      -----           -----

Accumulated other comprehensive income
    net of deferred income taxes:

    Unrealized appreciation of investments,
     net of adjustment for appreciation 
     (depreciation) related to realized gains
     included in net income
    Beginning of period                               2,460           1,625
    Change for the period                               521             508
    Deferred income taxes                              (209)           (184)
                                                      -----           -----
       End of period                                  2,772           1,949
                                                      -----           -----

    Currency translation adjustments
    Beginning of period                                 (42)            (53)
    Change for the period                               (45)            (12)
    Deferred income taxes                                33              49
                                                        ---             ---
       End of period                                    (54)            (16)
                                                        ---             ---

    Accumulated other comprehensive income
    Beginning of period                               2,418           1,572
    Change for the period                               476             496
    Deferred income taxes                              (176)           (135)
                                                      -----           -----
       End of period                                  2,718           1,933
                                                      -----           -----

Retained earnings:
    Beginning of period                               7,492           6,708
    Net income                                          526             477
    Dividends on common stock                           (90)            (88)
    Dividends on preferred stock, net of
     income taxes                                        (5)             (5)
                                                      -----           -----
       End of period                                  7,923           7,092
                                                      -----           -----

Common stock in treasury:
    Beginning of period                              (2,909)         (2,046)
    Cost of shares acquired during period              (454)           (377)
    Stock issued under stock option and other
     incentive arrangements                              (3)              7
                                                     ------          ------
       End of period                                 (3,366)         (2,416)
                                                     ------          ------

    Total common shareowners' equity                 $8,479          $7,732
                                                     ======          ======

           See notes to the consolidated interim financial statements.
                                        6
                             GENERAL RE CORPORATION
                      Consolidated Statements of Cash Flows
                                  (in millions)
                                                                  (Unaudited)
                                                               Six months ended
                                                                   June 30,
                                                                1998      1997
                                                                ----      ----
Cash flows from operating activities:
     Net income                                                 $526      $477
     Adjustments to reconcile net income to net
     cash provided by operating activities:
         Change in claim and claim expense liabilities          (151)      126
         Increase in policy benefits for life/health 
          contracts                                               64       143
         Change in reinsurance recoverable                       216       (18)
         Increase in unearned premiums                           129        30
         Amortization of acquisition costs                       683       726
         Acquisition costs deferred                             (720)     (750)
         Trading account activities
              Change in trading account securities              (792)    1,037
              Securities purchased under agreements
               to resell                                         340      (243)
              Securities sold under agreements to
               repurchase                                        273      (638)
              Change in other trading balances                  (334)     (228)
         Other changes in assets and liabilities                  43      (120)
         Net realized gains on investments                       (34)       (4)
                                                                 ---      ----
                  Net cash from operating activities             243       538
                                                                 ---       ---

Cash flows from investing activities:
     Fixed maturities: available-for-sale
         Purchases                                            (3,670)   (3,067)
         Calls and maturities                                    278       246
         Sales                                                 3,074     3,332
     Equity securities
         Purchases                                              (511)     (682)
         Sales                                                   481       263
     Net sales (purchases) of short-term investments             228       (55)
     Net purchases of other invested assets                       (9)      (33)
                                                              ------       ---
                Net cash (used in) from investing activities    (129)        4
                                                               -----       ---

Cash flows from financing activities:
     Issuance of structured notes                                411       -
     Commercial paper borrowing, net                             382      (140)
     Change in contract deposits                                (425)       34
     Cash dividends paid to common shareowners                   (90)      (88)
     Acquisition of treasury stock                              (463)     (375)
     Other                                                        12        31
                                                               -----     -----
                  Net cash used in financing activities         (173)     (538)
                                                                ----      ----

Change in cash                                                   (59)        4

Cash, beginning of period                                        352       365
                                                                 ---       ---

Cash, end of period                                             $293      $369
                                                                ====      ====





           See notes to the consolidated interim financial statements.
                                        7
                             GENERAL RE CORPORATION

               NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS


1.   General - The interim  financial  statements of General Re Corporation  and
     its  subsidiaries  ("General  Re")  have  been  prepared  on the  basis  of
     generally accepted accounting principles and, in the opinion of management,
     reflect  all  adjustments   (consisting  of  normal,   recurring  accruals)
     necessary for a fair presentation of results for such periods.  The results
     of  operations  for any interim  period are not  necessarily  indicative of
     results for the full year.  These  financial  statements  and related notes
     should be read in  conjunction  with the financial  statements  and related
     notes in  General  Re's 1997  Annual  Report  filed on Form  10-K.  Certain
     reclassifications  have been made to 1997  balances  to conform to the 1998
     presentation.   The  operating   results  of  General  Re's   international
     reinsurance operations are reported on a quarter lag.

2.   Income Taxes - General Re's effective  income tax rate differs from current
     statutory rates principally due to tax-exempt interest income and dividends
     received deductions.  General Re paid income taxes of $111 million and $163
     million in the first six months of 1998 and 1997, respectively.

3.   Reinsurance Ceded - General Re utilizes  reinsurance to reduce its exposure
     to large  losses.  The  income  statement  amounts  for  premiums  written,
     premiums  earned,  claims  and  claim  expenses  incurred  and  life/health
     benefits are reported net of reinsurance.  Direct,  assumed,  ceded and net
     amounts  for the first six  months  of 1998 and 1997  were as  follows  (in
     millions):

               Property/Casualty       Life/Health      Claims and   Life/Health
               Written    Earned    Written    Earned Claim Expenses  Benefits

     1998
     Direct    $  251    $  254           -        -      $   198            -
     Assumed    2,630     2,482        $699     $676        1,566         $492
     Ceded       (395)     (384)        (80)     (82)        (188)         (63)
              --------  -------       -----    -----      -------        -----
     Net       $2,486    $2,352        $619     $594       $1,576         $429
               ======    ======        ====     ====       ======         ====



     1997
     Direct      $237      $255         -        -           $208          -
     Assumed    2,996     2,919        $649     $614        1,933         $442
     Ceded       (419)     (415)        (67)     (48)        (212)         (35)
              -------   -------       -----    -----      -------        -----
     Net       $2,814    $2,759        $582     $566       $1,929         $407
               ======    ======        ====     ====       ======         ====











                                        8

                             GENERAL RE CORPORATION

         NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS (continued)


4.   Per Common  Share  Data - Basic  earnings  per  common  share were based on
     earnings less preferred  dividends,  divided by the weighted average common
     shares  outstanding  during each period.  Diluted earnings per share assume
     the  conversion  of all  outstanding  convertible  preferred  stock and the
     maximum  dilutive  effect of common stock  equivalents.  The following is a
     reconciliation  of the  numerators and  denominators  used in the basic and
     diluted earnings per share calculations for the three months and six months
     ended June 30, 1998 and 1997.

                           Income  Shares  Per share  Income  Shares  Per share
                           ------  ------  --- -----  ------  ------  --- ----- 
                                          Three Months Ended
                           ----------------------------------------------------
                                 June 30, 1998               June 30, 1997
                                 -------------               -------------

     (in millions, except
      per share information)

     Net income               $254                      $233
     Less: preferred 
      dividends                 (2)                       (2)
                               ----                      ----
              Basic earnings   252     76.0  $3.32       231     80.1   $2.88
                                             =====                      =====
     Effect of dilutive
      securities
     Stock options               -      1.1                -      0.7
     Conversion of
      preferred stock            2      1.7                2      1.7

     Conversion expense          -      -                 (1)
                             -----   ------              ----
          Diluted earnings    $254     78.8  $3.22      $232     82.5    $2.81
                              ====     ====  =====      ====     ====    =====


                                             Six Months Ended
                               June 30, 1998                  June 30, 1997
                               -------------                  -------------


     Net income               $526                      $477
     Less: preferred
      dividends                 (5)                       (5)
                              -----                      ----
           Basic earnings      521     76.5  $6.81       472     80.6    $5.85
                                                         ====    ====    =====
    Effect of dilutive
      securities
     Stock options              -       1.0                -      0.7
     Conversion of
      preferred stock            5      1.7                5      1.7

     Conversion expense         (2)                       (2)
                              -----    -----                     -----
        Diluted earnings      $524     79.2  $6.62      $475      83.0   $5.72
                              ====     ====  =====      ====      ====   =====

5.   New Accounting Standards - In June 1997, the Financial Accounting Standards
     Board issued Statement No. 131,  Disclosure about Segments of an Enterprise
     and Related  Information.  This statement  requires that  companies  report
     certain  information  about their  operating  segments in their interim and
     annual financial  statements,  including information about the products and
     services  from  which  revenues  are  derived,   the  geographic  areas  of
     operation,  and information  about major customers.  The statement  defines
     operating segments based on internal management  reporting and management's
     method of allocating resources and assessing performance.  The statement is
     effective for year end 1998 and is not expected to change the four segments
     now reported by General Re.


                                        9
                             GENERAL RE CORPORATION

         NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS (continued)

     In June 1998, the Financial Accounting Standards Board issued Statement No.
     133,  Accounting for Derivative  Instruments and Hedging  Activities.  This
     statement  establishes  accounting  and reporting  standards for derivative
     instruments,  including certain  derivative  instruments  embedded in other
     contracts.  It requires that all derivatives be recognized as either assets
     or liabilities  in the balance sheet and measure those  instruments at fair
     value.  If  certain  conditions  are  satisfied,   the  derivative  may  be
     designated as a hedge of an exposure to changes in the value of an asset or
     liability,  variable cash flows for forecasted transactions, or the foreign
     currency  exposure  of the  net  investment  in a  foreign  operation.  For
     derivatives designated as hedging instruments,  net income will be affected
     by the extent to which the  derivative  is not  effective as a hedge of the
     underlying  instrument.  For  derivatives  designated as a hedge of the net
     investment in a foreign operation, the gain or loss on the derivative would
     be included in other  comprehensive  income. For derivatives not designated
     as hedges,  the gain or loss would be recognized in income in the period of
     change.

     The statement is effective for all fiscal quarters beginning after June 15,
     1999.  General  Re is  currently  assessing  the  effect of  adopting  this
     statement  on its  financial  position  and  operating  results.  It is not
     expected, however, that the adoption of this statement will have a material
     effect on General Re's financial position or results from operations.

6.   Berkshire Hathaway Transaction - On June 19, 1998, General Re and Berkshire
     Hathaway  Inc.  ("Berkshire")  announced  that  they  had  entered  into an
     Agreement  and Plan of Mergers.  The  transaction  is subject to regulatory
     approvals  and the  approvals of both  companies'  shareholders.  Under the
     terms of the  agreement,  General  Re  shareholder  will  receive  at their
     election  either 0.0035  shares of Berkshire  Class A common stock or 0.105
     shares of  Berkshire  Class B common  stock for each  share of  General  Re
     common stock they own at the time the transaction is consummated.

     The agreement  also provides that if Berkshire and General Re are unable to
     receive  certain tax rulings from the  Internal  Revenue  Service  prior to
     February  19,  1999,  Berkshire  may elect to have an  alternative  form of
     transaction,  under which  General Re  shareholders  will  receive the same
     aggregate value in consideration as stated in the prior paragraph, although
     3 percent of the consideration would be received in cash rather than stock.
     The total  consideration for the transaction,  based upon the closing price
     of  Berkshire  Class A common stock on July 31, 1998 is  approximately  $19
     billion.

















                                       10
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF

                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS


MERGER

On June 19, 1998, General Re and Berkshire Hathaway Inc. ("Berkshire") announced
they had reached a definitive agreement to merge. See Note 6 to the consolidated
interim financial statements for more information on the transaction. The merger
is expected to close in the fourth quarter of 1998.

CONSOLIDATED

Income from operations, excluding after-tax realized gains and losses, was $3.20
per diluted  share in the second  quarter of 1998,  an increase of 10.7  percent
from the $2.89 per diluted share earned in the  comparable  period in 1997.  Net
income for the second quarter of 1998 was $3.22 per diluted share, compared with
$2.81 per  diluted  share in 1997.  Net income  for the  second  quarter of 1998
included  after-tax  realized  gains of $.02 per diluted  share,  compared  with
after-tax  realized  losses of $.08 per diluted  share in the second  quarter of
1997.  The improved  results in the second quarter of 1998 were primarily due to
increased earnings in the financial  services,  international  property/casualty
and life/health operations.

For the first six months of 1998,  income from operations,  excluding  after-tax
realized  gains and losses,  was $6.32 per diluted share compared with $5.73 per
diluted share in 1997, an increase of 10.3 percent. Net income for the first six
months of 1998 was $6.62 per share,  compared  with $5.72 per share for the same
period in 1997. Included in net income were after-tax realized gains of $.30 per
share in the first six months of 1998,  compared with after-tax  realized losses
of  $.01  per  share  in  the  same  period  of  1997.  Improved   international
property/casualty  underwriting  results  and growth in trading  revenues in the
financial  services  operations  were the primary  contributors to the increased
earnings for the first six months of 1998.

As required by Financial Accounting  Statement No. 130, Reporting  Comprehensive
Income,  General  Re's  financial  statements  for 1998  include a statement  of
comprehensive  income.  Comprehensive income consists of net income,  unrealized
changes in investment  appreciation  and foreign currency  translation  gains or
losses.  Comprehensive income for the first six months of 1998 was $826 million,
or $10.41 per diluted share,  compared with $838 million,  or $10.06 per diluted
share for the same period in 1997. The difference between  comprehensive  income
and net income for the periods was primarily due to unrealized  appreciation  in
the common equity investment portfolio.

Consolidated  net  premiums  written for the second  quarter of 1998 were $1,694
million, a decrease of 7.7 percent from $1,835 million in 1997. Consolidated net
premiums  written for the first six months of 1998  decreased  8.6 percent  from
$3,396  million in 1997 to $3,105  million in 1998.  Adjusted for the effects of
foreign  exchange,  consolidated  traditional net premiums written increased 3.0
percent  and 2.2  percent  in the second  quarter  and first six months of 1998,
respectively.

General Re's consolidated  underwriting  combined ratio was 100.5 percent in the
second  quarter of 1998,  compared with 100.4  percent in the second  quarter of
1997. For the first six months of 1998 and 1997, the  consolidated  underwriting
combined ratio was 100.4 percent and 100.7 percent, respectively.





                                       11
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF

            FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

Consolidated  pretax investment income was $323 million in the second quarter of
1998,  compared with $316 million in the same period of 1997.  For the first six
months,  consolidated pretax investment income was $645 million and $634 million
in 1998 and 1997, respectively.  The 1.7 percent increase in consolidated pretax
investment  income in the first six months of 1998 was due to the  investment of
operating  cash  flow over the last  year,  partially  offset  by  common  stock
repurchases,  dividend  payments  and  the  strengthening  of the  U.S.  dollar,
principally against the German mark.

The  consolidated  effective tax rate was 21.4 percent for the second quarter of
1998,  compared with 22.7 percent in the second  quarter of 1997.  For the first
six months, the effective tax rate was 23.3 percent and 23.4 percent in 1998 and
1997, respectively.

Excluding the financial  services  operations,  consolidated  net cash flow from
operations  was $715  million in the first six months of 1998,  compared to $581
million in the same period in 1997.  The  increase of $134  million in the first
six months of 1998 was due to lower paid claims,  partially offset by the effect
of the strengthening  U.S. dollar which decreased  reported  international  cash
flow.

At June 30, 1998, insurance invested assets were $24,756 million, an increase of
$180 million  compared to $24,576  million at December 31, 1997,  primarily  the
result of unrealized  appreciation  in the equity  portfolio,  reduced by common
stock repurchases and dividend payments.  The financial services  operations had
$3,689 million of invested  assets at June 30, 1998, an increase of $909 million
compared to December 31,  1997.  The  increase in  financial  services  invested
assets in the first six  months of 1998  results  from  changes  in the  hedging
activities of General Re Financial Products  Corporation  ("GRFP") and growth in
GRFP's match-funded business.

The  consolidated  gross  liability  for  claims  and  claim  expenses  for  the
property/casualty operations was $15,646 million at June 30, 1998, a decrease of
$151  million  from the  year-end  1997  liability.  Adjusted for the effects of
foreign exchange,  the gross liability would have increased $240 million, or 1.5
percent.

The asset for  reinsurance  recoverable  on unpaid claims was $2,138  million at
June 30, 1998,  compared to $2,356  million at December  31,  1997.  At June 30,
1998,  the gross  liability for claims and claim  expenses and the related asset
for   reinsurance   recoverables   include  $2,034  million  and  $616  million,
respectively,  for environmental and latent injury claims. These amounts include
provisions for both reported and incurred but not reported claims.

Common  shareowners'  equity at June 30, 1998 was $8,479 million, an increase of
$318 million, or 3.9 percent,  from the $8,161 million at December 31, 1997. The
increase was principally  the result of net income of $526 million,  an increase
in after-tax unrealized  investment gains of $312 million, and the reissuance of
common  stock of $27 million  under  employee  compensation  and benefit  plans,
partially  offset by common  share  repurchases  of $454  million and common and
preferred  stock  dividends  of  $95  million.  On a  per  share  basis,  common
shareowners'  equity was  $112.08 at June 30,  1998,  an increase of 6.3 percent
from $105.40 at December 31, 1997.







                                       12
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF

            FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

General Re  repurchased  2,076,600  shares of common  stock from January 1, 1998
through June 18, 1998 for aggregate  consideration  of $454  million.  No shares
have been  repurchased  since the  announcement  of  General  Re's  merger  with
Berkshire  Hathaway Inc. Since the inception of the repurchase  program in 1987,
General Re has repurchased  33,902,400 common shares for total  consideration of
$3.7 billion.

General Re periodically issues commercial paper to meet the short-term financing
needs of its various operations. Commercial paper offered by General Re has been
rated A1+ by Standard & Poor's and Prime 1 by Moody's. At June 30, 1998, General
Re had $1,071 million of commercial paper  outstanding,  $1,021 million of which
was used to support GRFP's  liquidity  needs and $50 million was used by General
Reinsurance  Corporation for its liquidity  needs. At June 30, 1998,  General Re
had $1.8  billion in  available  lines of credit  that  provide  General Re with
additional  financial  flexibility and support the commercial paper program. The
credit  lines  consist of a  five-year  credit  facility  of $1.0  billion and a
364-day facility for the remaining $0.8 billion.  The credit agreements with the
participating  banks  require  General  Re to  maintain  a minimum  consolidated
tangible net worth,  as defined,  of $2.7 billion.  To date,  General Re has not
drawn  against  its  corporate  credit  facilities.  In July  1998,  General  Re
increased available commitments under the lines to $2.7 billion.

Pretax  income  discussed in each of the segment  sections that follow is before
minority interest deductions and goodwill amortization, both of which are deemed
corporate expenses that have not been allocated to the segments.

NORTH AMERICAN PROPERTY / CASUALTY
(in millions)
                                 Second Quarter           Year-to-date
                                 --------------           -------------
                                 1998      1997           1998     1997
                                 ----      ----           ----     ----

Income before income taxes and
 realized gains                   $209     $211            $429    $416
Net premiums written               612      728           1,284   1,523
Net underwriting income              4        6               9      12

Loss ratio                        65.1%    67.1%           65.9%   67.5%
Expense ratio                     34.2     32.2            33.4    31.8
                                  ----     ----            ----    ----
Underwriting combined ratio       99.3%    99.3%           99.3%   99.3%

Investment income                 $203     $200            $409    $399
Other income                         1        5              11       5
Operating cash flow                132      136             427     253

Pretax income for the North  American  property/casualty  operations,  excluding
realized  gains/losses,  decreased 1.1 percent in the second quarter of 1998, as
compared to the same quarter of 1997,  and  increased  3.1 percent for the first
six months of 1998. The relatively  unchanged  operating  result was due to over
$1.1  billion  of cash  flows  being  used to  repurchase  common  stock and pay
dividends during the past twelve months. In addition,  underwriting results were
substantially unchanged for the period.

Net premiums  written for the North American  property/casualty  operations were
$612 million in the second  quarter of 1998 and $1,284  million in the first six
months of 1998,  representing  a decrease of 16.0  percent and 15.7 percent from
the  comparable  1997  amounts.  The  decline in premium  reflects  the  current
competitive market and General Re's adherence to underwriting discipline.


                                       13
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF

            FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

The  wholesale  nature  of  reinsurance  transactions  periodically  results  in
somewhat  volatile  premium trends between  quarters and years.  The addition or
loss of a large contract may  significantly  affect General Re's premium growth,
although  large  contracts  generally  have a smaller effect on earnings than on
premium  trends.  General Re's largest  treaty,  which had  annualized  premiums
written of approximately $250 million in 1997 and contributed  approximately one
half of one  percent of  General  Re's 1997 net  income,  was  terminated  as of
September 30, 1997 and thus impacts  premium  comparisons,  since  premiums from
this contract were included in the first six months of 1997, but were not in the
first six months of 1998.  Excluding this contract,  General Re's North American
premiums  written  declined  8.1  percent  for the  quarter.  Based  on  current
estimates   of   premium   inforce,    General   Re   expects   North   American
property/casualty  net  premiums,  excluding  this  contract,  to decline in the
mid-single digits during 1998.

For the General  Star  companies,  which  primarily  write  excess,  surplus and
specialty  insurance,  net  premiums  written  increased by 12.5 percent for the
quarter and 8.9 percent  for the first half of 1998.  This growth was  primarily
due to  increased  property  business.  General Star is  experiencing  increased
competition from insurers  predominantly writing standard coverages for business
in the excess and  surplus  lines  market.  For the  Genesis  operations,  which
provide  direct  excess  coverage to  companies  with  qualified  self-insurance
programs,  net  premiums  written  increased by 22.2 percent for the quarter and
17.0  percent for the first half of 1998  principally  due to greater  liability
business and accident and health business.

Pretax  investment  income for the North American  property/casualty  operations
increased  1.5 percent  compared  to the second  quarter of 1997 and 2.4 percent
year-to-date.   Investment  income  for  the  North  American  property/casualty
operations grew slightly during the periods due to positive  operating cash flow
in the prior twelve months,  offset by share  repurchases and common  dividends.
The overall pretax total return on the North American property/casualty invested
asset  portfolio was 4.8 percent in the first six months of 1998,  compared with
5.2 percent in the same period in 1997.

Operating cash flow for the North American property/casualty operations was $427
million in the first six months of 1998,  compared  to $253  million in the same
period of 1997. The increase was primarily due to lower paid claims.  Due to the
nature of General Re's reinsurance operations,  paid claims may be volatile from
quarter to quarter.  In  addition to  operating  cash flow,  the North  American
property/casualty  operations  had $298  million  of cash  outflows  related  to
contract  deposits  that  matured  during  the first half of 1998  (included  in
"change in contract  deposits" in the  statement of cash flows).  These types of
contracts generally have a provision that requires most of the investment income
earned on the funds  held by General  Re to be shared  with the ceding  company.
Thus,  the effect of the return of these funds was not  material  to  investment
income and earnings.

North American  property/casualty  invested  assets were $16,067 million at June
30,  1998,  an increase of 0.5 percent from  December 31, 1997.  The increase in
invested  assets was  primarily  the  result of  positive  operating  cash flow,
unrealized  appreciation  in the equity  portfolio,  reduced by  repurchases  of
General Re's common stock and common stock  dividends.  The gross  liability for
claims and claim  expenses for the North American  property/casualty  operations
was  $10,576  million at June 30,  1998,  a  decrease  of $108  million,  or 1.0
percent,  compared to the year-end  1997  liability.  The asset for  reinsurance
recoverable  on unpaid claims was $1,599  million at June 30, 1998,  compared to
$1,803 million at December 31, 1997.






                                       14
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF

            FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)


INTERNATIONAL PROPERTY / CASUALTY
(in millions)
                                    Second Quarter           Year-to-date
                                    --------------           -------------
                                    1998      1997           1998     1997
                                    ----      ----           ----     ----     

Income before income taxes and 
 realized gains                       $82      $78            $173     $149
Net premiums written                  788      823           1,202    1,291
Net underwriting (loss)              (10)      (12)            (18)     (32)

Loss ratio                           69.5%    72.3%           68.4%    73.3%
Expense ratio                        32.4     29.7            33.3     29.4
                                    -----     -----           -----    -----
Underwriting combined ratio         101.9%   102.0%          101.7%   102.7%

Investment income                     $90       $91            $177     $184
Other income (loss)                     3       (1)              14      (3)
Operating cash flow                   121      100              288     328

Income   before   income   taxes  and  realized   gains  of  the   international
property/casualty  operations  increased  6.2 percent for the second  quarter of
1998,  compared  with the second  quarter  of 1997 and  increased  16.2  percent
compared  with the first six  months of 1997.  For the first six months of 1998,
income  for the  international  property/casualty  operations  increased  due to
improved  underwriting  results and higher other income. The comparisons for the
second  quarter  and   year-to-date   1998  were   adversely   affected  by  the
strengthening  of the U.S.  dollar (9.0 percent and 11.0 percent,  respectively)
relative to the German mark.

The  underwriting   combined  ratio  in  the   international   property/casualty
operations was 101.9 percent in the second quarter,  which compares favorably to
the 102.0 percent for the second quarter of 1997 and 102.4 percent  reported for
the full year  1997.  For the first six  months of 1998 and 1997,  the  combined
ratio was 101.7 percent and 102.7 percent, respectively. Catastrophe losses were
not significant  during the quarter.  The improved  underwriting  result for the
past six  months  was  primarily  due to lower  property  claims  and  favorable
development on previously reported case reserves.

International  net premiums  written were $788 million in the second  quarter of
1998 and $1,202  million  for the first six months of 1998,  compared  with $823
million and $1,291 million,  respectively,  in 1997. Adjusted for the effects of
foreign exchange, international property/casualty premiums written increased 3.2
percent  and 1.9  percent  in the second  quarter  and first six months of 1998,
respectively.  The relatively flat premium growth in international  premiums was
due to competitive market conditions.

Pretax investment income for the international  property/casualty operations was
$90 million  for the second  quarter of 1998,  compared  with $91 million in the
same period of 1997.  The decline in  investment  income was due to a decline in
global  interest  rates and the effect of  foreign  exchange.  Adjusted  for the
effects of foreign exchange,  pretax investment income increased 6.4 percent and
4.8 percent for the second quarter and year-to-date, respectively.





                                       15
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF

            FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

The international  property/casualty and global life/health  operations had cash
flow from operating activities of $288 million for the first six months of 1998,
compared  with $328  million in 1997.  The  decline in  operating  cash flow was
principally due to the effect of foreign  exchange and lower  underwriting  cash
flow. In addition to operating  cash flow, the  international  property/casualty
operations had net cash outflows related to contract  deposits during the period
of $127 million. Similar to North American deposit transactions,  these types of
contracts generally have a provision that requires most of the investment income
earned on the funds  held by General  Re to be shared  with the ceding  company.
Thus,  the effect of the return of these  funds is not  material  to  investment
income and earnings. General Re anticipates that approximately an additional $45
million of international  property/casualty deposit contracts will mature during
the remainder of 1998.

International  property/casualty  and  life/health  invested  assets were $8,689
million at June 30, 1998, compared with $8,581 million at December 31, 1997. The
increase in invested assets was due to investment of operating cash flows offset
by the stronger U.S.  dollar,  which  appreciated 4.8 percent against the German
mark in the first six months of 1998.

The gross liability for claims and claim expenses was $5,070 million at June 30,
1998,  compared  with  $5,113  million  at  December  31,  1997.  The  asset for
reinsurance  recoverable  on unpaid claims was $539 million at June 30, 1998 and
$553 million at December 31,  1997.  Growth in these  amounts was reduced by the
effect of foreign exchange.


GLOBAL LIFE / HEALTH
(in millions)
                                        Second Quarter           Year-to-date
                                        --------------           -------------
                                        1998      1997           1998     1997
                                        ----      ----           ----     ----  

                                                                     
Income before income taxes and 
 realized gains                          $17      $15             $37      $43
Net premiums written
     Life reinsurance                    192      207             408      414
     Health reinsurance                  103       77             211      168
                                         ---     ----             ---      ---

Total life/health net premiums written   295      284             619      582
Net underwriting income (loss)            (3)     (1)             (3)        9
Investment income                         20       18              41       36
Other income (loss)                        -       (2)            (1)       (1)

Income  before  income  taxes  and  realized  gains for the  global  life/health
operations  increased  7.8 percent for the second  quarter of 1998 and  declined
15.2 percent for the first half of 1998. The decline in operating income for the
six  months  was due to lower  underwriting  results,  principally  in the group
health reinsurance sector.

Life  reinsurance  premiums  written were $192 million for the second quarter of
1998,  compared with $207 million in the second  quarter of 1997.  For the first
six months, life reinsurance premiums written were $408 million and $414 million
in 1998 and 1997,  respectively.  Adjusted for the effects of foreign  exchange,
global life  reinsurance  premiums  decreased  approximately  0.9 percent in the
quarter and  increased  7.2  percent  year-to-date.  Growth in life  reinsurance
business  has slowed  during  1998 as a result of product mix changes in Germany
and the loss of one contract with  approximately  $28 million of annual  premium
due to merger and acquisition activity.


                                       16
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF

            FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

Investment income for the global life/health  operations was $20 million and $41
million  in the  second  quarter  and  first six  months of 1998,  respectively,
compared  to $18 million and $36  million in 1997.  The  increase in  investment
income was due to invested cash flow from higher  premium  volume over the prior
twelve months.

The liability for policy benefits for life/health  contracts was $971 million at
June 30, 1998,  compared  with $907 million at December 31, 1997.  The asset for
reinsurance  recoverable  on unpaid  losses was $298  million at June 30,  1998,
compared to $271 million at December  31, 1997.  Cologne Re manages its invested
assets  and  total  assets  on  an  aggregate  basis  for  the  life/health  and
property/casualty business and does not disaggregate its investments by segment.
The  invested  assets  and  total  assets   disclosures  in  the   international
property/casualty segment includes the assets of the global life/health segment.

FINANCIAL SERVICES
(in millions)
                                              Second Quarter     Year-to-date
                                              --------------     -------------
                                              1998      1997     1998     1997
                                              ----      ----     ----     ---- 
Income before income taxes and realized gains  $44      $33       $69     $63
Total revenues (excluding realized gains)      105       82       189     164
Investment income                                9        7        18      15
Other income                                    35       25        51      47

Financial  services   operations  include  General  Re's  derivative   products,
investment   management,   insurance   brokerage  and  management,   reinsurance
brokerage,  and real estate  management  operations.  In the second  quarter and
first six months of 1998,  financial  services revenues of $105 million and $189
million,  respectively,  increased  27.5  percent and 15.0  percent from the $82
million  and $164  million in the second  quarter  and first six months of 1997,
respectively. The growth in 1998 revenues was principally attributable to growth
in GRFP's global equity business and fixed income business in North America.

Invested  assets  held for  trading  purposes  in the first  six  months of 1998
increased  $465  million  to  $2,324  million  at June 30,  1998.  The  increase
primarily  relates  to the  hedging  activities  of GRFP and  growth  in  GRFP's
match-funded  business.  At June 30, 1998, total assets of the financial service
operations  were $10,573  million,  compared with $8,874 million at December 31,
1997.  The amount  and  nature of the  financial  service  segment's  assets and
liabilities  are  significantly  affected  by  the  risk  management  strategies
utilized by GRFP to reduce its market  risks.  GRFP's market  exposures  arising
from derivative products are managed through the purchase and sale of government
securities,  futures  and forward  contracts,  or by  entering  into  offsetting
derivatives  transactions.   The  purchase  of  government  securities,  usually
financed through  collateralized  repurchase  agreements  (securities sold under
agreements to repurchase), and the sale of government securities, whose proceeds
are  invested  in reverse  repurchase  agreements  (securities  purchased  under
agreements to resell), are used to offset GRFP's market exposures. While the use
of  these  instruments  for  risk  management  purposes  may  cause  significant
short-term  fluctuations  in GRFP's assets and  liabilities,  they do not have a
material effect on General Re's results from  operations or common  shareowners'
equity.







                                       17
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF

            FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

MARKET RISK

As a global reinsurance and financial services company, General Re is subject to
market  risk  arising  from the  potential  change in the  value of its  various
financial instruments.  These changes may be due to fluctuations in interest and
foreign  exchange rates,  credit spreads and equity prices.  The level of market
risk  is  influenced  by  many  factors,  such as  volatility,  correlation  and
liquidity.  Potential  gains or  losses  from  changes  in  market  rates can be
estimated through statistical models that project within a specified  confidence
level the "value at risk" based on historical  price and  volatility  movements.
General Re's 1997 Form 10-K  provides a more  detailed  discussion of the market
risks  affecting the  reinsurance  and financial  service  operations.  Based on
General Re's  estimates as of June 30, 1998, no material  change has occurred in
its  value  at  risk in the  reinsurance  operations,  as  compared  to  amounts
disclosed in its 1997 Form 10-K.

General Re's financial service operations are subject to market risk principally
through GRFP. GRFP monitors its market risk on a daily basis across all swap and
option  products by  calculating  the effect on  operating  results of potential
changes in market variables over a one-week period,  based on historical  market
volatility, correlation data and informed judgment. This evaluation is performed
on an individual trading book basis, against limits set by individual book, to a
95 percent  probability  level.  GRFP sets  market  risk limits for each type of
risk, and for an aggregate  measure of risk,  based on a 99 percent  probability
that  movements in market rates will not affect the results from  operations  in
excess of the limit over a one week period.  Risk is measured primarily by Monte
Carlo  simulations to obtain the required  degree of confidence.  In addition to
daily and weekly  assessments  of value at risk,  GRFP performs  stress tests to
estimate its exposure to extreme movements in various market risk factors.

The table below shows the highest,  lowest and average value-at-risk amounts for
each  type of  market  risk to which  GRFP is  exposed.  Since  1992,  when GRFP
initiated these  calculations,  there has been no one-week period for which GRFP
experienced a loss that exceeded its estimated market risk exposure.

                                    Value at Risk
                   --------------------------------------------------------    
                               First Six Months of 1998
                   -------------------------------------------------------- 
                   Interest      Foreign
(in millions)        Rate     Exchange Rate        Equity         All Risks
                     ----     -------------        ------         ---------  
Highest              $9            $4                $7               $13
Lowest                7             2                 3                 6
Average               8             3                 4                 9

                                                Full Year 1997
                   ---------------------------------------------------------
                   Interest     Foreign
(in millions)        Rate    Exchange Rate          Equity         All Risks
                     ----    -------------          ------         ---------
Highest              $11           $6                 $5               $13
Lowest                6             3                  0                 7
Average               9             4                  2                10



                                       18

                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF

            FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

For the first six months of 1998, the largest weekly pretax gains and losses due
to market risk were $5 million and $2 million,  respectively. The largest weekly
pretax gain due to market risk was $5 million and the largest weekly pretax loss
due to market risk was $3 million for the full year 1997.  The average effect of
the change in market risk on income was a pretax gain of $1 million in the first
six months of 1998 and was neutral for the full year 1997.


SAFE HARBOR DISCLOSURE

In  connection  with the "safe  harbor"  provisions  of the  Private  Securities
Litigation  Reform  Act of  1995  (the  "Act"),  General  Re  sets  forth  below
cautionary  statements  identifying important risks and uncertainties that could
cause  its  actual  results  to  differ  materially  from  those  that  might be
projected, forecasted or estimated in its forward-looking statements, as defined
in the Act,  made by or on  behalf  of  General  Re in press  releases,  written
statements or documents filed with the Securities and Exchange Commission, or in
its  communications  and  discussions  with investors and analysts in the normal
course of business  through  meetings,  phone calls and conference  calls.  Such
statements may include,  but are not limited to, projections of premium revenue,
investment income, other revenue, losses, expenses, earnings (including earnings
per share), cash flows, plans for future operations,  common shareowners' equity
(including book value per share),  investments,  financing needs, capital plans,
dividends,  plans  relating to products or services of General Re and  estimates
concerning the effects of litigation or other  disputes,  as well as assumptions
for  any of the  foregoing  and  are  generally  expressed  with  words  such as
"believes,"   "estimates,"   "expects,"   "anticipates,"   "plans,"  "projects,"
"forecasts," "goals," "could have," "may have" and similar expressions.  General
Re, as a matter of policy,  does not make any specific  projections as to future
earnings nor does it endorse any projections  regarding future  performance that
may be made by others.

Forward-looking  statements  involve known and unknown risks and  uncertainties,
which  may  cause   General  Re's  results  to  differ   materially   from  such
forward-looking  statements.  These risks and uncertainties include, but are not
limited to, the following:

1)    Changes  in  the  level  of   competition   in  the  North   American  and
      international  reinsurance  or primary  insurance  markets that affect the
      volume or profitability of General Re's  property/casualty  or life/health
      businesses.  These changes include, but are not limited to, changes in the
      intensity of price  competition,  the entry of new  competitors,  existing
      competitors exiting the market, and the development of new products by new
      and existing competitors;

2)    Changes  in the  demand  for  reinsurance,  including  changes  in  ceding
      companies'  risk  retentions,  and  changes  in the  demand for excess and
      surplus lines  insurance  coverages in North  America,  and changes in the
      demand for financial service operations' products.

3)    The ability of General Re to execute  its  strategies  in its 
      property/casualty,  life/health  and  financial  service operations;

4)   Catastrophe  losses  in  General  Re's  North  American  or   international
     property/casualty businesses;




                                       19
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF

            FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

5)    Adverse   development  on   property/casualty   claim  and  claim  expense
      liabilities related to business written in prior years, including, but not
      limited to,  evolving case law and its effect on  environmental  and other
      latent injury claims,  changing government  regulations,  newly identified
      toxins, newly reported claims, new theories of liability, such as possible
      Year  2000  computer-related  losses,  or new  insurance  and  reinsurance
      contract interpretations;

6)    Changes in inflation that affect the profitability of General Re's current
      property/casualty  and  life/health  businesses  or  the  adequacy  of its
      property/casualty  claim and claim  expense  liabilities  and  life/health
      policy benefit liabilities related to prior years' business;

7) Changes in General  Re's  property/casualty  and  life/health  retrocessional
arrangements;

8)    Lower than estimated  retrocessional  or reinsurance  recoveries on unpaid
      losses,  including,  but not  limited  to,  losses due to a decline in the
      creditworthiness of General Re's retrocessionaires or reinsurers;

9)    Increases in interest  rates,  which cause a reduction in the market value
      of  General  Re's  fixed  income  investment  portfolio,  and  its  common
      shareowners' equity;

10)   Decreases in interest  rates  causing a reduction of income  earned on new
      cash flow from operations and the reinvestment of the proceeds from sales,
      calls or maturities of existing investments;

11) Decline in the value of General Re's common equity investments;

12) Changes in the composition of General Re's investment portfolio;

13)  Changes  in  mortality  or  morbidity   levels  that  affect  General  Re's
life/health business;

14)   Credit  losses on General  Re's  investment  portfolio;  credit and market
      losses on GRFP's portfolio of derivatives and other transactions;

15)   Adverse  results in  litigation  matters,  including,  but not limited to,
      litigation  related to  environmental,  asbestos and other  potential mass
      tort claims;

16) Gains or losses related to changes in foreign currency exchange rates; and

17) Changes in General Re's capital needs.

In addition to the factors  outlined above that are directly  related to General
Re's  businesses,  General  Re  is  also  subject  to  general  business  risks,
including, but not limited to, adverse state, federal or foreign legislation and
regulation,  adverse  publicity or news  coverage,  changes in general  economic
factors and the loss of key employees.





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<PAGE>


                                OTHER INFORMATION


Item 4. Submission of Matters to a Vote of Security Holders
-----------------------------------------------------------
(a) The Annual Meeting of Stockholders of General Re was held on May 22, 1998.

(b) All director nominees were elected.

(c) Certain additional matters voted upon at the meeting:

       (1) The proposal to adopt the General Re Corporation 1998 Employee Stock
           Purchase Plan was ratified.

       (2) The proposal for the selection of independent  public accountants was
           ratified.



Item 6. Exhibits and Reports on Form 8-K
----------------------------------------
(a)    Reports on Form 8-K      -   A report on Form 8-K dated June 26, 1998 was
                                    filed describing the Agreement and Plan
                                    of Mergers dated June 19, 1998 between
                                    General Re and Berkshire Hathaway Inc.

(b)    Exhibit 27.1             -   Financial Data Schedule for the Period Ended
                                    June 30, 1998
























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<PAGE>




                                   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.


                             GENERAL RE CORPORATION
                             ----------------------
                                   (Registrant)

Date:    August 6, 1998      JOSEPH P. BRANDON
                             Joseph P. Brandon
                             Senior Vice President and Chief Financial Officer
                             (Principal Financial Officer)

Date:    August 6, 1998      ELIZABETH A. MONRAD
                             Elizabeth A. Monrad
                             Vice President and Treasurer
                             (Principal Accounting Officer)


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