SOURCE: Hannover Ruck

September 01, 2009 03:09 ET

Hannover Re executes innovative capital market transaction covering facultative risks

HANNOVER, GERMANY--(Marketwire - September 1, 2009) -


Hannover Re executes innovative capital market transaction covering facultative risks

Hannover, 1 September 2009: Hannover Re has for the first time placed a facultative risk portfolio as part of its extended Insurance-Linked Securities (ILS) activities. Worldwide individual risks of selected clients are pooled and transferred as a programme to the capital market. Hannover Re's interest here is not in protecting its own portfolio, but rather in transferring the business of its clients directly to the capital market.

"With this type of pooling and transformer role we enable cedants to access the capital market for risks that would not otherwise lend themselves to this purpose on a stand-alone basis", Chief Executive Officer Ulrich Wallin explained. "We make reinsurance capacity available and give investors an opportunity to share in the currently prevailing attractive market conditions", Mr. Wallin added. The contracts mediated by the reinsurance intermediary Aon Benfield are written by Hannover Re and placed in the capital market in conjunction with Execution Limited.

The Fac Pool Re transaction consists of a quota share cession and two risk tranches. The total amount of capital provided stands at USD 60 million, with Hannover Re keeping a share of approximately USD 5 million and additionally assuming losses that exceed the capacity of Fac Pool Re. The term of the transaction is two and a half years.

Fac Pool Re is the second transaction to be completed by the Insurance-Linked Securities unit, set up at the beginning of 2008. In this context Hannover Re cooperates with international reinsurance brokers and partners.


For further information please contact:

Press and Public Relations / Investor Relations:
Stefan Schulz (tel. +49 511 5604-1500,
e-mail: stefan.schulz@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: HUwww.hannover-re.comU

Hannover Re, with a gross premium of around 9 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 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.


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