SOURCE: Hannover Ruck

March 01, 2010 04:14 ET

Hannover Re enters into long-term letter of credit facility to expand its life and health business

HANNOVER, GERMANY--(Marketwire - March 1, 2010) -

Hannover Rück / Hannover Re enters into long-term letter of credit facility to expand its life and health business processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement.

Hannover, 1 March 2010: Hannover Re announced today that it has concluded a USD 500 million long-term letter of credit facility with Deutsche Bank. This facility will enable Hannover Re to make the most of further attractive growth opportunities in the US reinsurance market. The line of credit can be used to put up the collateral required by regulators for assumed technical liabilities.

Through the acquisition of the ING life reinsurance portfolio in 2009 Hannover Re has also acquired a policy administration platform and a team of mortality risk experts. "Having a perfect team combined with these new financial resources gives us a sound basis for leveraging the opportunities that will open up going forward," Ulrich Wallin, CEO of Hannover Re, noted. "We are striving to expand our business in the life market."

Hannover Re has the option to further increase the size of the facility above and beyond the initial USD 500 million to support additional business. The facility has a maturity of thirty years, with an early termination option exercisable by Hannover Re at specified times. The pricing is fixed through the first optional redemption date.

This letter of credit facility will be used by Hannover Re solely to expand its life business.

For further information please contact:

Corporate Communications:
Karl Steinle (tel. +49 511 5604-1500,
e-mail: karl.steinle@hannover-re.com)

Press and Public Relations:
Gabriele Handrick (tel. +49 511 5604-1502,
e-mail: gabriele.handrick@hannover-re.com)

Investor Relations:
Klaus Paesler (tel. +49 511 5604-1736,
e-mail: klaus.paesler@hannover-re.com)

Please visit: www.hannover-re.com

Hannover Re, with a gross premium of around EUR 9 billion, 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 on all five continents with a total staff of roughly 2,000. 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.

[HUG#1389199]

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Hannover Rück
Karl-Wiechert-Allee 50 Hannover Germany

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