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Hannover Re shares head the list of European insurance stocks

Hannover, 15 January 1998:

The generally successful 1997 stock market year was particularly pleasing for Hannover Re shareholders. The share price outperformed all relevant indices, posting an increase in value of 139% (from DM 70.50 to DM 168.00). More risk-loving investors even achieved profits of up to 1,380% with the company's purchase warrants.

The US investment bank Salomon Smith Barney analysed the performance of major insurance stocks throughout Europe at the end of the year. The assessment took account of each stock's performance both in absolute terms and relative to its domestic market. Hannover Re took the number one spot in both comparisons, leaving its competitors trailing in its wake. With regard to the runners-up, it is noteworthy that take-over offers have been made or announced.

According to Salomon Smith Barney, the reasons for this remarkable development in the value of the Hannover Re shares are the company's solid operating performance, another estimated rise in profits following strong 1996, the acquisition of Skandia International's reinsurance portfolio and the impressive return on equity.