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Hannover Re changes to registered shares

Hannover, 8 May 2000:

At its meeting held today the Executive Board of Hannover Rückversicherungs-AG resolved to propose to the Annual General Meeting on 20 July that the currently existing bearer shares be replaced with registered shares.

By taking this action, Hannover Re, like other companies, is hoping to bring greater transparency into the shareholding structure. Wilhelm Zeller, Chairman of the Executive Board of Hannover Re, stressed that this move will make it easier to cultivate direct contact with shareholders. Overall, the detailed knowledge of the shareholding structure can be used to organize Investor Relations activities even more systematically and efficiently.

In order to implement this replacement Hannover Re will require the registered shareholders to pay the outstanding amounts on subscribed share capital totalling EUR 12.78 million no later than 31 May of this year. The call on the unpaid share capital and the subsequent listing of the existing registered shares on the German stock exchange will create the necessary basis for administering Hannover Re's entire share capital in the form of uniform, fully paid listed registered shares under one single security identification number.

The planned replacement will increase the number of listed shares from 16.73 million to 29.53 million. The total market capitalization based on Friday's closing share price will thus grow to more than EUR 2 billion or almost double the previous level. This will also result in a considerably higher weighting of the Hannover Re share in the M-Dax and the C-Dax for insurance stocks.

As Mr. Zeller explained, the Executive Board is highly dissatisfied with the performance of the Hannover Re share price during the past year. The Board remains confident, however, that this package of measures consisting of a clear, uniform share structure, increased market capitalization and improved communication with investors and capital markets will, together with the continous profitable development of the company, favourably impact the share performance.