Annual Report 2003 - Hannover Re

Management report
affiliated companies
The anticipated positive underwriting cash
flow should further boost the volume of assets.
With interest rates remaining more or less unchanged
and at least neutral extraordinary income,
we expect an investment result roughly
on a par with the 2003 financial year. Building
upon the year under review, it is probable that
we shall again cautiously increase our equity
allocation. In the area of fixed-income securities
we continue to set great store by the quality of
our portfolio, and we are prepared to err on the
side of caution and sacrifice one or two percentage
points of yield to the benefit of flexibility
and quality. We expect yields at the long end of
the market to increase somewhat in the course
of the year, and it is therefore likely that we shall
again slightly extend the duration of our bond
portfolio.
In view of the expected development of our
business groups and the economic environment,
we should again be able in 2004 to significantly
boost the profit for the year. As always, this is subject
to the proviso that the burden of losses remains
within the normal bounds of the multi-year
average and that there are no unexpectedly adverse
movements on capital markets.
Affiliated companies
We received an adequate consideration for
all transactions with affiliated companies according
to the circumstances of which we were
aware at the time when the transactions were
effected. We incurred no losses requiring compensation
as defined by § 311 (1) of the Stock
Corporation Act (AktG).
Proposal for the distribution of profits
The Executive Board and the Supervisory
Board intend to propose to the Annual General
Meeting that the disposable profit be distributed
as follows:
Figures in EUR
Proposal for the distribution of profits
Payment of a dividend of EUR 0.95
on each eligible no-par-value share 114 567 277.30
Profit carried forward to new account 432 722.70
Disposable profit 115 000 000.00
Other information
Joint administration arrangements exist between
our company and our subsidiary E+S Rückversicherungs-AG
and extend to all functions of
the two companies.
Our investments are managed by Ampega
Asset Management GmbH and real estate matters
are handled by Ampega Immobilien Management
GmbH.
Tax matters are largely handled on a central
basis for the Group by HDI Haftpflichtverband
der Deutschen Industrie V.a.G.
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