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Clarendon results disappointing for 2000

Hannover, 8 March 2001: The Clarendon Insurance Group, New York, part of the Hannover Re Group since 1999, was able to increase its gross premium income in 2000 to USD 1.7 billion, a rise of 15%. However, the after-tax profit fell markedly from USD 33.8 million to USD 1 million.

Wilhelm Zeller, Chairman of the Executive Board of the Hannover Re Group, made known at an analysts' meeting in San Diego, California, that Clarendon had realised its growth potential and expanded its portfolio considerably in 2000. Conversely, two exceptional effects in particular caused the result to drop noticeably. On the one hand, the combined ratios returned to normal after an outstandingly good level the previous year. On the other hand, the loss of one reinsurance protection and an increase in IBNR reserves were two extraordinary events that strained Clarendon's results. With a slight underwriting loss the after-tax profit therefore decreased by USD 32.8 million to USD 1 million.

Mr. Zeller expressed his disappointment at this development but stressed that the Clarendon result would only have a very slight effect on the year-end results of the Hannover Re Group as a whole. He shall disclose further details on this subject on 14 March 2001 in Frankfurt, at the long-planned press conference to discuss Hannover Re's expected results.