Hannover Rück (FRA:HNR1) Hannover Re Successfully Places Life Reinsurance Business On The Capital Market

Hannover Rück (FRA:HNR1) 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.

Hannover Rück

http://www.hannover-re.com

ISIN: DE0008402215

Stock Identifier: XFRA.HNR

US: Other OTC:HVRRF.PK