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Hannover Re plans increase in stockholders' equity of EUR 194.3 million

Hannover, 28 November 2001:

The Boards responsible for Hannover Re decided today to increase the capital stock of Hannover Re by EUR 7,305,749.99 to EUR 82,798,545.89 through the issue of 2,857,761 new, registered no-par value shares. Hannover Re is being advised on this capital increase by Norddeutsche Landesbank Girozentrale, Hannover.

The new shares will be issued with a subscription ratio of 31:3 and at a subscription price of EUR 68.00 per share. The subscription price will therefore be 5.56% lower than the closing price as at 27 November 2001. The subscription period will extend from 5 to 18 December 2001. The main shareholder, HDI, will subscribe through its intermediate holding company Talanx AG 75% of the new shares in proportion to its existing shareholding. The new shares will carry full dividend rights for the entire 2001 financial year.

The total amount of the capital increase will thus be EUR 194.3 million.

Wilhelm Zeller, Chairman of the Executive Board of Hannover Re, explained, that this capital increase will permit Hannover Re to continue to participate strongly in the vigorous upswing of the global reinsurance markets.