ERGO Vers.gruppe AG: In the first business year, ERGO starts with DM 21.3 bn. gross premium and a dividend of 30%

Düsseldorf (ots-Ad hoc-Service) - Mitteilung gemäß Paragraph 15 WpHG übermittelt von der DGAP. Für den Inhalt der Mitteilung ist allein der Emittent verantwortlich.

In 1997, the companies of ERGO
Versicherungsgruppe continue the past years' trend of positive results. Markedly higher profits in both property-casualty business and insurances of the person resulted in an increase of the Group profit by more than 50% to over DM 530 m. The shareholders of ERGO and its subsidiaries are to participate in this success. The Board of Management of ERGO Versicherungsgruppe AG will be proposing to the Supervi- sory Board and AGM payment of a dividend of DM 1.50 per share.

At the same time, the opportunity will be seized to further strengthen the reserves of ERGO Versicherungsgruppe AG and the daughter companies.

All domestic insurance companies of ERGO Versicherungsgruppe achieved better results in the business year 1997, so that - subject to the approval of the relevant bodies - they are able to pay higher dividends or transfer larger profits to ERGO. ER- GO's foreign business has contributed to this positive develop- ment as well.

Property-casualty insurance contributed to the satisfactory re-sults by achieving an altogether significantly improved loss situation. Inspite of huge investments, the cost trend remained unchanged in comparison with last year. Returns on capital in-vestments played a crucial role in achieving the above mentio- ned excellent results. ERGO's client base was expanded stron- gly: In health insurance alone, we were able to win the confi- dence of more than 300,000 new clients.

Therefore, all the ERGO companies have made an excellent start in their first ERGO year. Adoption of the dividend resolutions will mean that the shareholders of former VICTORIA Holding AG, whose shares were converted into ERGO shares at the rate of 1:1 (in terms of par values), will enjoy a dividend increase of mo- re than 7% as a result of the rise in the dividend rate from 28% to 30%.

For the business year 1997, the main ERGO insurance companies all increased their profits. In detail, subject to the approval of the relevant bodies, the main figures show as follows:

Life insurance 1997 1996 * %

Hamburg Mannheimer Versicherungs-AG
Net profit in DM m. 118.5 114.2 +3.8% Dividend rate in % 22 22
Gross premiums in DM m. 5,116 4,983 +2.7%

VICTORIA Lebensversicherung AG
Net profit in DM m. 35.2 21.6 +63,0% Dividend rate in % 28 27
Gross premiums in DM m. 3,425 3,519 -2.7%

Health insurance

Deutsche Krankenversicherung AG
Net profit in DM m. 102.1 80.5 +26.8% Dividend rate in % 20 18
Extra distribution of
EK 50 in DM m.* 113.5
Gross premiums in DM m. 5,210 5,083 +2.5%

Property-casualty and legal expenses insurance

VICTORIA Versicherung AG
Net profit in DM m. 120.1 57.3 +109.5% Dividend rate in % 30 27
Gross premiums in DM m. 2,449 2,554 -4.1%

Hamburg Mannheimer Sachversicherungs-AG
Net profit in DM m. 103.5 46.9 +120.6% Dividend rate in % 24 24
Extra distribution
of EK 50 in DM m.* 196.0
Gross premiums in DM m. 1,384 1,331 +4.0%

D.A.S. Deutscher Automobil Schutz
Allgemeine Rechtsschutz-Versicherungs-AG
Net profit in DM m. 33.8 30.1 +12.6% Dividend rate in % 26 25
Gross premiums in DM m. 780 770 +1.3%

*including tax relief from corporate income tax; by way of "distribution and call back" the lion's share of the funds will be reallocated to the company.

At the balance sheet press conference on May 13th, 1998, the annual account of ERGO Versicherungsgruppe AG and further in-formations for the business year 1997 will be presented.

ERGO Versicherungsgruppe AG Board of Management

Ende der Mitteilung
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