Hannover Rück (FRA:HNR1) Hannover Re To Acquire ING Individual Life Reinsurance Business From Scottish Re

Hannover Rück (FRA:HNR1) Hannover Re to acquire ING individual life reinsurance business from Scottish Re

Hannover, 23 January 2009: Hannover Re announced today an agreement to acquire certain US Individual Life Reinsurance Business ("ING Business") previously reinsured from ING by affiliates of Scottish Re Group Limited ("Scottish Re") in a reinsurance and asset purchase transaction. In addition to assuming the business directly from ING via fresh reinsurance agreements directly with ING, Hannover Re will acquire the policy administration systems of Scottish Re as well as other assets supporting the US mortality reinsurance business.

The ING Business was originally acquired by Scottish Re in a reinsurance transaction effective December 31, 2004. In 2009, this business is estimated to generate a premium volume of ca. USD 1.2 bn and will result in Hannover Re moving up to the number five position in terms of individual life reinsurance in-force in the US. Hannover Re will assume all liabilities of the ING Business and will in turn receive assets to fund those liabilities from Scottish Re. The acquisition includes all operating assets required to administer the ING Business. Hannover Re will also employ part of Scottish Re's staff, thus ensuring operational continuity and a transfer of know-how.

No external funding will be required to complete this transaction. The acquisition of the ING portfolio will be accretive to Hannover Re's Group net income from 2009.

The transaction, which is expected to close in the first quarter of 2009, is subject to regulatory approvals and other customary closing conditions.

"This is a transformational step for our global life reinsurance ambitions", commented Hannover Re's CEO Wilhelm Zeller. "It contributes a large block of business in force, together with industry-leading capabilities in mortality research, pricing, underwriting and reinsurance administration which will substantially increase our presence and earnings from the US mortality risk market. It has the added benefit of improving our diversification of earnings sources, placing less reliance on the more volatile non-life sector going forward."

"We are very excited by the combination of a deep knowledge of the US mortality market with Hannover's global reach and financial strength. This acquisition nicely complements our leading US reinsurance position in Financial Solutions and the Senior Health market", commented Peter R. Schaefer, President and CEO of Hannover Life Reassurance Company of America (HLR US). "We look forward to welcoming the employees and customers of our new business platform, and also the ability to offer additional services to our existing customers."

J.P. Morgan Securities acted as exclusive financial advisor to Hannover Re on this transaction and Locke Lord Bissell & Liddell LLP and Debevoise & Plimpton LLC provided external legal counsel.

Hannover Re will host a conference call at 1.00 p.m. today, invitations for which will follow separately.

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 / 511 / 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