Content

1996: Hannover Re expects another record year

Double-digit dividend increase is anticipated


Frankfurt, 5 June 1997:

Hannover Re expects to increase its 1996 group profit before tax by 36% to 158m DEM. This represents a new record result, said Wilhelm Zeller, chairman of the executive board, during a meeting with financial journalists in Frankfurt. According to the latest estimates, gross premiums of the group increased by 7% to 6.4bn DEM. This increase results mainly from the life and health business, which is one of the company's strategic focusses as well as from the Asian (+11%) and North American (+20%) markets. However, part of this upward trend is due to currency rate movements. The deterioration of the underwriting result (-386m DEM versus -278m DEM the previous year) is related mainly to significant investments in strategic priorities such as life and health and financial reinsurance.

Due to positive developments in international capital markets, an excellent investment result was achieved. Invested assets increased by 20% to 15.6bn DEM and generated an investment income of 865m DEM, representing an improvement of one-third when compared to the previous year. Hannover Re expects the pre-tax profit of the parent company to reach 92m DEM (+14%). According to the dividend policy introduced last year, Hannover Re distributes its total net profit as dividend. The immediate result is that shareholders can expect the gross dividend to increase by more than 10%. Hannover Re already offers one of the highest dividend yields of the entire German stock market (3.09 DEM for a 5 DEM share).