were $364 million, of which approximately 70 percent was casualty business and 30 percent was property business. National Re's clients are predominantly small- to medium-sized, regional and specialty property/casualty insurers. Like General Re, National Re principally writes treaty and facultative reinsurance on an excess-of-loss basis.
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 treaty contracts usually include short-term cancellation provisions. General Re's largest treaty was 7.7 percent of total North American net premiums written.
The portfolio is diversified by country of issuer and duration to match the currency and duration structure of the related reinsurance liabilities.
We have audited the consolidated financial statements and schedules of General Re Corporation and subsidiaries listed in the index on page 27 of this Form 10-K. These financial statements and schedules are the responsibility of the corporation's management. Our responsibility is to express an opinion on these financial statements and schedules based on our audits.
The Class A shares have 49.9 percent of the votes of GR-CK and are entitled to an annual Class A dividend, which is based on a formula and is subject to a minimum of approximately DM 36 million, while the Class B shares have 50.1 percent of the votes of GR-CK and are entitled to the earnings of GR-CK in excess of the Class A dividend. General Re also receives an annual Class B cash dividend of 50.1 percent of GR-CK's distributable income, as defined in the joint-venture agreement. The dividends related to the 1995 calendar result, which were paid in 1996 with respect to the Class A and B shares were $27 million and $26 million, respectively.
The gross liability for environmental and latent injury claims and claim expenses and the related reinsurance recoverable were $1,989 million and $635 million, respectively, at December 31, 1996. The liability for environmental and latent injury claims and claim expenses is management's best estimate of future claim and claim expense payments and recoveries which are expected to develop over the next several decades. General Re continues to monitor evolving case law and its effect on environmental and latent injury claims. Changing government regulations, newly identified toxins, newly reported claims, new theories of liability, new contract interpretations and other factors could significantly affect future claim development. While General Re has recorded its current best estimate of its liabilities for unpaid claims and claim expenses, it is reasonably possible that these estimated liabilities, net of estimated reinsurance recoveries, may increase in the future and that the increase may be material to General Re's results from operations, cash flows and financial position. It is not possible to estimate reliably the amount of additional net loss, or the range of net loss, that is reasonably possible.
The following table sets forth the plans' funded status and amount recognized in General Re's consolidated balance sheet:
The Plan also provides for bonus awards to be made in cash, common stock, share units or restricted stock options ("RSOs"). RSOs restrictions lapse five years after the grant date and RSOs expire ten years after the grant date. RSOs are included in the table above. Share units are paid in shares of common stock at a designated future date in advance of the bonus award period. The expense of the Plan was $7 million in 1996, $4 million in 1995 and $2 million in 1994.
As part of its retrocessional program, General Re placed a portion of its reinsurance with various Lloyd's of London syndicates. The syndicates act as managing agents for individual "Names" who bear the risks and rewards of the syndicates' underwriting results. Under Lloyd's current structure, Names have unlimited liability for potential claims. During 1996 Lloyd's finalized a plan of "Reconstruction and Renewal," which is intended to end litigation associated with losses from prior syndicate years, especially those years exposed to North American environmental and other mass tort exposures. The plan allows Names to reinsure their pre-1992 underwriting years to a newly formed corporate reinsurer "Equitas," which will reinsure and manage the runoff of these claims. The intent is to close out Names' potential exposures for these prior underwriting years. Names, however, still have potential exposure for these losses if Equitas is unable to meet its obligations. At December 31, 1996, General Re's reinsurance recoverables on paid and unpaid claims and claim expenses from all Lloyd's syndicates aggregated approximately $260 million.
The following table presents GRFP's derivatives portfolio by counterparty credit quality and maturity at December 31, 1996. The amounts shown under gross exposure in the table are before consideration of netting arrangements and collateral held by GRFP. Net fair value shown on the table represents unrealized gains on financial instrument contracts in gain positions, net of any unrealized loss owed to these counterparties on offsetting positions. Net exposure shown on the table is net fair value less collateral held by GRFP.