Press Release

Bayerische Hypo- und Vereinsbank AG (HypoVereinsbank) and Max Re Capital Ltd. today announced the incorporation of Grand Central Re Limited

Hamilton, May 30, 2001 - Bayerische Hypo- und Vereinsbank AG (HypoVereinsbank) and Max Re Capital Ltd. today announced the incorporation of Grand Central Re Limited, a Class 4 Bermuda insurance company with an initial shareholders’ equity of US$200 million. Under the terms of the shareholders’ agreements, HypoVereinsbank has invested US$185 million for 92.5% of the ordinary share capital of Grand Central Re, and Max Re Capital has invested US$15 million for the remaining 7.5%.

Pursuant to the terms of the agreements, Max Re Capital Ltd will bring insurance management and underwriting expertise to Grand Central Re, and HypoVereinsbank will bring asset management and banking experience.

In announcing the transaction, HypoVereinsbank’s Chief Executive Officer for the Americas and Asia, Stephan W. Bub, said “We are excited by the opportunities that Grand Central Re offers to HVB Group. It represents a natural extension of our financial services operations, and we are committed to participating actively in Bermuda’s innovative reinsurance marketplace.”

Robert J. Cooney, Chairman, Chief Executive Officer and President of Max Re Capital said “We view HypoVereinsbank’s choice of Max Re to manage the underwriting activities of Grand Central Re as a strong endorsement of both our expertise and our strategy. We expect the combination of Grand Central Re and Max Re will offer enhanced benefits to our clients.”

The adviser and project manager for the Grand Central Re project was ISIS Limited, a corporate finance business based in Bermuda.

Bermuda has one of the largest reinsurance markets in the world, comprised of some 1,600 insurance and reinsurance companies, with total assets of over US$132 billion and capital and surplus of over US$55 billion.

HypoVereinsbank is the largest real estate financier in Europe and Germany’s second largest bank. With a staff of over 72,000 employees and approximately 2,400 branch offices, it serves more than 8 million customers and focuses its activities on four core competencies: mortgage banking, asset management, structured finance and selected financial market products. At December 31, 2000, HypoVereinsbank Group assets amounted to €716.5 billion.

Max Re Capital is a privately owned Bermuda holding company. Through its operating subsidiary, Max Re Ltd, it offers customized risk financing solutions to life and health insurers, property and casualty insurers, and large corporations. The company’s shareholders’ equity at March 31, 2001 exceeded US$500 million.

Additional information regarding HypoVereinsbank and Max Re may be found on their websites at http://www.hypovereinsbank.de/ and http://www.maxre.bm/ respectively.

Safe Harbor for Forward-Looking Statements: Statements contained in this press release that are not based on current or historical fact are forward-looking in nature. Such statements are based on current plans, estimates and expectations. Actual results may differ from those projected in forward-looking statements, which should be read accordingly. Forward-looking statements are based on known and unknown risks, assumptions, uncertainties and other factors. The actual results, performance, or achievements of HypoVereinsbank, Max Re Capital and Grand Central Re may differ materially from any future results, performance, or achievements expressed or implied by such forward-looking statements. The Companies undertakes no obligation to publicly update or revise any forward looking-statement.

ContactThomas J. Glynn, HypoVereinsbank ., (212) 672-6013

Keith S. Hynes or Kip Herring, Max Re Capital Ltd., (441) 296-8800