HANNOVER, Germany, June 2, 2004 (PRIMEZONE) -- The Annual General Meeting of Hannover Re, which was very well attended with more than 1,500 participants, approved all proposed resolutions by a large majority. In his address to the meeting Wilhelm Zeller, Chairman of the Executive Board, gave a retrospective of the highly successful financial year enjoyed by the company, which in 2003 boosted its net income after tax by around one-third to 355 million euro.
Mr. Zeller also expressed considerable satisfaction with the development of the first quarter of 2004. Although gross premium income was sharply lower -- in part due to exchange rate effects -- net income for the quarter increased by a good 36% to 97 million euro. "With this performance we have established a solid foundation for achieving our goal of net income in the region of 390 to 430 million euro and earnings of 3.20 to 3.60 euro a share", Mr. Zeller affirmed. He reiterated that Hannover Re's overriding concern is not with growing its premium volume, but with generating highly profitable business. The decline in gross premiums of somewhat more than 20% - as was the case in the first quarter - therefore has no bearing on the company's profit expectations. More relevant indicators in this respect are a major loss burden within the bounds of the multi-year average and the absence of unexpected, adverse movements on capital markets.
The Annual General Meeting approved the proposal of the Executive Board and the Supervisory Board regarding the distribution of the disposable profit. Shareholders will receive a gross dividend of 95 cents (previous year: 85 cents) on each share fully paid-up for the entire financial year.
In addition, the Annual General Meeting authorised the Executive Board of Hannover Re to acquire own stock in the period until 30 November 2005. The Annual General Meeting further approved various amendments to the Articles of Association, including the modification of the Supervisory Board's compensation; the ratio used to calculate the variable component will henceforth be the operating profit (EBIT).
The next Annual General Meeting of Hannover Re is scheduled to be held on 14 June 2005.
For further information, please contact Eric Schuh (tel. +49/ 511/ 56 04-15 00; fax +49/ 511/ 56 04-16 48, e-mail eric.schuh@hannover-re.com).
Hannover Re, with gross premiums of approximately EUR 11 billion, is one of the five largest reinsurance groups in the world. It transacts all lines of property/casualty, life/health and financial/finite-risk reinsurance as well as program business. It maintains business relations with more than 3,000 insurance companies in about 150 countries. Its worldwide network consists of more than 100 subsidiaries, branch and representative offices in 19 countries. The rating agencies most relevant to the insurance industry have awarded Hannover Re very strong insurer financial strength ratings (Standard & Poor's AA- "Very Strong" and A.M. Best A "Excellent").
-0-