The  new  council  and management of Eesti Kindlustus have reviewed the

financial  condition  of  the company and based on the current economic

situation  in  Estonia, formulated the strategy for the coming periods.

As  an  important  strategic  step  the  company  also intends to unite

Hansabank  Insurance and Estonian Life Insurance (Eesti Elukindlustus).

The most likely date for the merger is January

1, 1999.