HANNOVER, Germany, Dec. 17, 2002 (PRIMEZONE) -- Hannover Re's (Other OTC:HVRRF) subsidiary ES Ruck, bearing exclusive responsibility for German business within the Group, yesterday successfully completed the capital increase announced in October.
The capital stock of ES Ruck has been increased from EUR 30 million to EUR 42.6 million through the issue of 22,443 new no-par-value registered shares. Including a share premium of EUR 287.4 million, the total capital increase amounted to EUR 300 million. Hannover Re, as the parent company, currently holds a 56.8 % participation in ES Ruck, while 41.7 % is divided between seven highly reputed German mutual insurers.
Over the past 18 months Hannover Re has already boosted its equity base on several occasions. These measures, in conjunction with the capital increase at ES Ruck, have strengthened the balance sheet of the Hannover Re Group by a total of approximately EUR 1 billion.
Wilhelm Zeller, Chairman of the Executive Board of Hannover Re, explained: "With these capital resources the Hannover Re Group is well equipped to derive maximum benefit from the opportunities offered by the current treaty renewals and participate to the fullest in the strong upturn of the reinsurance markets."
Whether or not -- and if so -- to what extent further capital measures will be needed next year due to the favourable business growth cannot currently be foreseen. However, in November an Extraordinary General Meeting of Hannover Re approved in principle a range of capital market options.
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.