Hannover Re successfully places life reinsurance business on the
capital market
Hannover Re successfully places life reinsurance business on the
capital market
Hannover, 15 January 2009: Hannover Re has again transferred a
portfolio of life and annuity reinsurance to the international
capital market. The transaction - designated "L7" - encompasses a
financing volume of EUR 100 million and covers unit-linked life and
annuity business of several European clients.
This transfer enables Hannover Re to convert a future earnings steam
into a current liquidity position and monetise an embedded value of
EUR 100 million as at year-end 2008.
The company has thereby not only secured greater financial
flexibility with an eye to the further enlargement of its life and
health portfolio, but also improved its risk diversification. "What
is more, this successful placement demonstrates that the market is
still open to high-quality business despite the difficult situation
on capital markets", Wolf Becke, Chief Executive Officer of Hannover
Life Re, noted.
The Hannover Re Group manages its worldwide portfolio in the life,
health and annuity lines - the business group with the strongest
growth potential - under the brand name Hannover Life Re. Over many
years it has built up special problem-solving expertise in the
financing of new business acquisition costs from life portfolios and
the monetisation of embedded values in its clients' life portfolios -
a field of activity conducted globally under the "Financial
Solutions" label.
Following on from the first-ever securitisation of natural
catastrophe risks in 1994, Hannover Re delivered another pioneering
contribution in 1998 with the transfer of acquisition costs from life
reinsurance contracts to the capital market; by 2006 six of these
so-called "L" transactions had already been completed.
For further information please contact:
Press and Public Relations / Investor Relations:
Stefan Schulz (tel. +49 / 511 / 56 04-15 00,
e-mail: stefan.schulz@hannover-re.com)
Press and Public Relations:
Gabriele Handrick (tel. +49 / 511 / 56 04-15 02,
e-mail: gabriele.handrick@hannover-re.com)
Investor Relations:
Klaus Paesler (Tel. +49 / 5 11 / 56 04-17 36,
e-Mail: klaus.paesler@hannover-re.com)
Please visit: www.hannover-re.com
Hannover Re, with a gross premium of around 8 billion euro, is one of
the leading reinsurance groups in the world. It transacts all lines
of non-life and life and health reinsurance. It maintains business
relations with more than 5,000 insurance companies in about 150
countries. Its worldwide network consists of more than 100
subsidiaries, branch and representative offices in around 20
countries with a total staff of roughly 1,800. The rating agencies
most relevant to the insurance industry have awarded Hannover Re very
strong insurer financial strength ratings (Standard & Poor's AA-
"Very Strong" and A.M. Best A "Excellent").
Disclaimer:
Some of the statements in this press release may be forward-looking
statements or statements of future expectations based on currently
available information. Such statements are naturally subject to risks
and uncertainties. Factors such as the development of general
economic conditions, future market conditions, unusual catastrophic
loss events, changes in the capital markets and other circumstances
may cause the actual events or results to be materially different
from those anticipated by such statements. Hannover Re does not make
any representation or warranty, express or implied, as to the
accuracy, completeness or updated status of such statements.
Therefore, in no case whatsoever will Hannover Re and its affiliate
companies be liable to anyone for any decision made or action taken
in conjunction with the information and/or statements in this press
release or for any related damages.
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.
