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Acquisition of Skandia International portfolio successfully completed

Hannover, 30.6.1998:

Hannover Re today signed jointly with Skandia Insurance Company Ltd., Stockholm, the completion documents for the transfer of the active portfolio of Skandia International Insurance Company (SIIC). Upon signature of the completion in Stockholm, portfolios with a premium volume in the order of SEK 2.8 billion (DM 650 million) with all relevant assets and liabilities were transferred to Hannover Re.

The portfolio transfer, which was agreed between Hannover Re and Skandia on 22 September 1997, due to its complex but for both parties optimal structure, required the approval of more than 100 government and supervisory agencies worldwide. The Swedish supervisory office has now received the consent of all relevant parties.

Wilhelm Zeller, Chairman of the Executive Board of the Hannover Re Group, commented: "The completion of this portfolio transfer enables us not only to take another step towards the accomplishment of our strategic objectives, but also to reinforce the human resources of the Hannover Re Group through the integration of those staff at Skandia International who are responsible for this business". Mr. Zeller added that the retrocetive acquisition of these business segments had increased the Hannover Re Group's gross premium income to almost DM 8 billion in 1997.

A number of subsidiaries and service offices have also been taken over or re-established in the period between the signing of the agreement and completion of the entire transaction. In conjunction with the completion, the UK subsidiary Skandia Reassurance (UK) Ltd. had been transferred to Hannover Re and it now operates under the name "Hannover Life Re United Kingdom". In addition, Hannover Re has established the "Hannover Re Stockholm Branch", to which the portfolios of Scandinavian life reinsurance business and facultative business were transferred.

The establishment of the "Inter Hannover Scandinavian Branch", a branch office of the International Insurance Company of Hannover Ltd., has also been successfully completed. This UK subsidiary of the Hannover Re Group is to assume responsibility for all aviation and aerospace business.

Mr. Zeller went on to add that "by re-establishing additional Skandia International offices in France, Spain and Mexico, we have been able to eradicate further blank spots from our world map". Especially in light of its ambitious strategic objectives, Mr. Zeller asserted that Hannover Re was thus even better equipped for the coming years and, in particular, would be able to expand its range of services.

The execution of such a complex transaction in a relatively brief space of time had only been possible due to the close cooperation between Skandia and the Hannover Re Group, and Mr. Zeller noted that thanks were due in equal measure to the members of staff at both companies.