German reinsurer Hannover Re's Bermuda subsidiary had a better second quarter in 2005 than in the same period a year earlier, its chief executive said.

In an interview with Dow Jones Newswires, Wilhelm Zeller, the CEO of the world's third largest reinsurer, said Hannover Re (Bermuda) Ltd. helped the company's second-quarter earnings benefit from a relatively lower tax rate compared with the first quarter

"Hannover Re's Bermuda-based unit, which doesn't pay taxes, performed better than in the first quarter," the story quoted Mr. Zeller saying.

In the first quarter, the Bermuda-based unit, Hannover Re (Bermuda) Ltd., was exposed to storms in Scandinavia, he added.

Hannover Re is predicting a strong third quarter, provided there are no large damage claims.

Hannover Re's exposure to this year's first hurricanes, Dennis and Emily, was between EUR20 million and EUR30 million for Dennis and "negligible" for Emily.