ots Ad hoc-Service: ERGO Vers.gruppe AG ERGO increases profit for the year 2000 by 50 percent to more than 700 million Euro

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    Düsseldorf (ots Ad hoc-Service) -      

    ERGO Insurance Group again expects - based on current information - excel- lent results for 2000. Premium income will presumably rise by 5.7 % from 11.9 billion Euro to 12.6 billion Euro - outperforming the average market growth. With this growth ERGO, the second largest German primary insurer, further strengthens its position in Europe.

    The investment portfolio increases - depending on the developments of the capital markets until the end of the year - to more than 90 (84.6) billion Euro. Net investment income will exceed 6,5 (5.3) billion Euro.

    Profit for the year will probably rise by at least 50 % to more than 700 (466) million Euro. The increase is mainly due to the again improved operating earnings, but also caused by special effects. Because of the decrease of the corporate tax rate to 25 % deferred tax liabilities had to be revalued. An additional factor for the improved results was the con- solidation of special funds as required by the IAS framework from the year 2000 on. Shareholders' funds will grow by more than 15 % to more than 6 (5.2) billion Euro. The outstanding course of business until now as well as the expected remarkably higher profit for the year give ERGO the chance to increase its dividend once again (last year: 1.02 Euro).

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