Lireas Holdings (Pty) Ltd
Company Registration Number: 1972/003346/07

Lireas Holdings is the strategic insurance investment company of Hannover Re Group Africa and
Mahogany Capital. Lireas, via its shareholding in various underwriting agencies and specialist insurance
companies, provides Hannover Re Group Africa with access to business that is usually not accessible to a
traditional reinsurer.

In addition to providing a profitablereinsurance flow, the Lireas investments provide above average returns on
investment. Lireas is managed according to the principles of a closed private equity fund and adheres to the valuation guidelines per the South African Venture Capital Association, of which Lireas is a member.

The business generated by Lireas’ underwriting agencies is classified as programme business within the Hannover Re Group
and has been identified as one of the Group’s strategic business segments. Accordingly, the partnerships that Lireas has both

with risk carriers and underwriting agencies are highly valued and Lireas remains committed to building lasting, long-term
relationships with our partners.
Our BEE deal was finalised in December 2005, where Mahogany capital bought 49% of Lireas Holdings. This has had a
positive effect on the FSC score of Lireas and all its subsidiaries and associates. This partnership will see Lireas grow from
strength to strength.

The good profit achieved by Lireas in 2005 is really a reflection of the excellent underlying performance by most of its
subsidiaries and associates – from both an underwriting and company perspective.

This has further served to reinforce the Group’s strategy to invest in entrepreneurial underwriters who have the necessary skills to run agencies, which are niche, specialised and focused.

Compass Insurance Company Ltd

Construction Guarantee underwrites on behalf of Compass Insurance Co. Ltd. The Compass Insurance business model is unique in the short-term insurance industryas they only deal with Underwriting Managers. They have an A+ credit rating from Global Credit Rating and have recently achieved R1 185 294 447 GWP in their 2009 financial statements.

Hannover Re Group Africa (Pty) Ltd

Hannover Reinsurance Group Africa (Pty) Ltd, founded more than 50 years ago, has developed into one of Africa’s largest reinsurers.

In 2000 it became 100% owned by Hannover Re Germany and has today emerged as a diversified reinsurance group, combining the security and expertise of European professionals with traditional South African values. Its strong South African premium income base has been expanded to include business from various Sub-Saharan African countries.

Effective 31 December 2005 Hannover Re Africa sold 49% of its shareholding in Lireas Holdings (Pty) Ltd to Mahogany Capital (Pty) Ltd, a professional black owned private equity firm. This transaction allows Hannover Re to strategically partner with Mahogany Capital and simultaneously provides the underlying investments with improved empowerment status in line with the Financial Services Charter requirements.

Hannover Re Group Africa has had a close association with Mahogany Capital since its formation and its founding shareholder and Managing Director has served the Hannover Re boards for the last 4 years making a valuable contribution to their business objectives.