HANNOVER, Germany, Nov. 14, 2002 (PRIMEZONE) -- Today, the Extraordinary General Meeting of Hannover Re (Other OTC:HVRRF) approved by a large majority an amendment of the Articles of Association that enables the company to utilise all currently recognised capital market instruments as necessary. In addition to providing for increased authorised capital, a framework has now been created for the issue of convertible and warrant bonds, dividend bonds and participation rights.
As Wilhelm Zeller, Chairman of the Executive Board, explained: "We have thus laid the foundation to ensure that in future we shall continue to be able to flexibly exploit market opportunities on the basis of our solid capital resources."
He again stressed that Hannover Re is currently adequately capitalised and consequently has no plans for an equity increase in the short term.
For the impending treaty renewals as at year-end Hannover Re anticipates further hardening of the reinsurance markets. The company will therefore again be able to generate highly profitable business in the coming year. Whether, when and in what form this development might trigger an increased capital requirement cannot currently be foreseen.
On November 20, 2002 Hannover Re will publish its third-quarter financial statement and also provide an initial assessment of the upcoming renewals as at January 1, 2003.
Hannover Re, with gross premiums of approx. EUR 12 bn., is the fifth-largest reinsurer in the world. It transacts all lines of property/casualty, life/health and financial/finite-risk reinsurance as well as program business. It maintains business relations with more than 2,000 insurance companies in over 100 countries. Its worldwide network consists of more than 100 subsidiaries, branch and representative offices in 19 countries. The American rating agencies Standard & Poor's and A.M. Best have awarded Hannover Re a rating of AA ("Very Strong") and A ("Superior"), respectively.