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Executive Summary of 2007 Business Results

Development of Premium Income

The financial year 2007 was excellent - we accomplished our targets with respect to premium volume and profitability, even surpassing them by a comfortable margin.

Gross written premium grew to EUR 3.1 billion - an increase of 10.4 % on the previous year (EUR 2.8 billion). Net premium earned grew by as much as 17.8% to EUR 2.8 billion.

In terms of regional origin of premium volume, the UK substantially expanded its leading position and remained our most significant market with 30.1% of total income, followed by North America with a contribution of 20.8% and Germany with 14.0%.

Our preferred lines of life and annuity accounted for 87% of the total premium in 2007, with Enhanced Annuities in the UK serving as a vital driver of growth.

Results

The operating profit (EBIT) generated by Hannover Life Re showed significant growth of 65.4% to reach EUR 230.8 million (EUR 139.5 million), although this figure was positively influenced by a number of special effects. These effects accounted for around EUR 30 million in total, leaving a normalised operating profit (EBIT) in the order of EUR 200 million.

The EBIT margin reached 8.3%, an increase of 2.4%. The level comfortably surpassed our target of 5% even after factoring out special effects.

The consolidated net income of Hannover Life Re came in at EUR 188.7 million after allowance for minority interests, bearing in mind the positive effect of the reduction in deferred taxes. This was equivalent to earnings per share of EUR 1.57.