Hannover Re to Skip 2001 Dividend Due to

October 22, 2001

Hannover Re, the world’s 5th largest reinsurance group, announced Friday that it would not pay a dividend to shareholders this year due to the losses it expects from the attacks on the World Trade Center.

The company has estimated it will pay claims totaling €400 million ($360 million), net of reinsurance, about equal to its expected net profits, and has been placed on CreditWatch by Standard & Poor’s. Analysts saw the decision as a move to insure that Hannover keeps its current ‘AA+’ rating.

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