CONTACTS:

                                                         Jerome T. Fadden
                                                         (203) 622-5492

                                                         Celia R. Brown
                                                         (203) 622-5345

                                                         FOR IMMEDIATE RELEASE


                                  NAC RE CORP.
                     BOARD INCREASES QUARTERLY DIVIDEND AND
                     UPDATES STOCKHOLDER RIGHTS PROTECTIONS


                  Greenwich, CT, June 10, 1998 -- NAC Re Corp. (NYS- E-NRC)
announced today that its Board of Directors has declared a $.09 per share
dividend, which reflects a 20% increase in the regular quarterly dividend. The
cash dividend is payable on July 8, 1998 to holders of record at the close of
business on June 24, 1998.

                  The Board also adopted a new Stockholder Rights Plan designed
to protect Company stockholders in the event of takeover activity that would
deny them the full value of their investment. The newly adopted Plan replaces a
stockholder rights plan adopted in June 1988 which is scheduled to expire on
June 21, 1998.

                  Terms of the Plan provide for a dividend distribution of one
right for each share of Common Stock of the Company to holders of record at the
close of business on June 22, 1998. The rights will become exercisable only in
the event, with certain exceptions, that a person or group of affiliated or
associated persons accumulates 15 percent





or more of the Company's voting stock, or if a person or group announces an
offer to acquire 15 percent or more. The rights will expire on June 10, 2008.
Each right will entitle the holder to buy one one-hundredth of a share of a new
series of preferred stock at a price of $150.00. In addition, upon the
occurrence of certain events, holders of the rights would be entitled to
purchase either Company stock or shares in an "acquiring entity" at half of
market value. Further, at any time after a person or group acquires 15% or more
(but less than 50%) of the Company's outstanding voting stock, the Board of
Directors may, at its option, exchange part or all of the Rights (other than
Rights held by the acquiring person or group, which would become void) for
shares of the Company's common stock on a one-for-one basis.

                  The Company generally will be entitled to redeem the rights at
$.01 per right at any time until the tenth day following the acquisition of a 15
percent position in its voting stock.

                  Details of the new Rights Plan will be outlined in a letter to
be mailed to stockholders.

                  NAC Re Corp. is the parent company of NAC Reinsur- ance
Corporation, which is an "A+" rated reinsurer, licensed to write business in all
fifty states, the District of Co- lumbia and all provinces of Canada.




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