HANNOVER, Germany, Nov. 28, 2001 (PRIMEZONE) -- The Boards responsible for Hannover Re (GER:HNR) 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 November 27, 2001. The subscription period will extend from December 5, 2001 to December 18, 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.
Hannover Re, with gross premiums of EUR 8.3 bn., is the fifth-largest reinsurance group 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 20 countries. The American rating agencies Standard & Poor's and A.M. Best have awarded Hannover Re their second-highest rating of AA+ ("Very Strong") and A+ ("Superior"), respectively.