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Hannover Re boosts Program Business

Hannover, 17th April 2000:

The Clarendon Insurance Group, New York, a wholly owned subsidiary of the Hannover Re Group, has signed an agreement with Acceptance Insurance Companies, Inc. to acquire all outstanding shares in Redland Insurance Company, Iowa. The purchase price for the deal has not been made public.

Wilhelm Zeller, Chairman of the Executive Board of the Hannover Re Group, stated that this acquisition would provide a further opportunity for Hannover Re to expand its program business, one of the Group's strategic business segments. The capacity, the financial weight and the very good rating that Clarendon has to offer as part of the Hannover Re Group, as well as its specialist knowledge of US program business, will create substantial growth potential for Redland.

With an annual premium income of around USD 100m Redland Insurance Company is one of the smaller insurers of program business. This acquisition will be a considerable boost to the Clarendon Insurance Group's expected organic growth.

Program business is a speciality of the U.S. insurance market. Usually written as primary insurance, it involves an insurance carrier working in close co-operation with reinsurers and highly specialised managing general agents.