Hannover Re Acquires Reinsurance Portfolio from Scottish Re

HANNOVER, Germany--(BUSINESS WIRE)-- Hannover Re has reached agreement with Scottish Re (US) on the acquisition of a reinsurance portfolio as part of a transaction.

The acquired portfolio covers the mortality risk under term life and endowment policies that were reinsured by Scottish Re in the underwriting years 2000 to 2003. The business is 100% assumed by Hannover Re with effect from 1 January 2011.

The business is expected to generate an annual premium volume of around USD 80 million. Hannover Re is to assume the technical liabilities associated with the portfolio and will in return receive the necessary assets from Scottish Re.

'This transaction superbly complements our acquisition of the ING life reinsurance portfolio in 2009 and further strengthens our traditional US life business', Ulrich Wallin, Chief Executive Officer of Hannover Re, emphasised.

The transaction, which is expected to close in May 2011, still requires regulatory approval and is therefore subject to the customary reservations.

Hannover Re, with a gross premium of around EUR 11 billion, is the third-largest reinsurer 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 2,200. 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.

Hannover Re
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Source: Hannover Rückversicherung AG