SOURCE: Hannover Re

January 27, 2010 04:00 ET

Hannover Re increases its "K6" capital market transaction

HANNOVER, GERMANY--(Marketwire - January 27, 2010) -

Hannover RE / Hannover Re increases its "K6" capital market transaction processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement.

Hannover Re has given the capital market another opportunity to participate in (natural) catastrophe risks. The "K6" transaction, which was launched in 2009, was further boosted by the maximum targeted amount of USD 152 million to a total volume of USD 329 million; it was taken up by new and existing investors alike. Placement proved highly successful for Hannover Re, with investor demand comfortably outstripping supply. This also confirms that the market for alternative risk transfer, which had contracted in the wake of the financial market crisis, has recovered.

"Our latest capital market transaction serves to complement our traditional programme of protection cover, which we use to protect against peak exposures such as natural catastrophes", Chief Executive Officer Ulrich Wallin explained. "Our investors enjoy extremely attractive returns given a normal experience of the covered portfolio. What is more, they are able to diversify their own portfolio and exclude the usual interest rate risks associated with other capital market products."

The additional interests in the "K6" transaction were taken out in the form of three-year contracts, which means that in future only part of the "K6" quota share will be renewed at year-end. The transaction was placed with institutional investors worldwide.

The portfolio assembled for the "K6" securitisation consists of non- proportional reinsurance treaties in the property catastrophe, aviation and marine (including offshore) lines.


For further information please contact:

Press and Public Relations / Investor Relations:
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.


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