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Hannover Rück (FRA:HNR1) Hannover Re subsidiary sees attractive business opportunities in the German market
Hannover, 27 October 2008: At its press conference during the reinsurance week in Baden-Baden E+S Rück - the company that bears responsibility for German business within the Hannover Re Group - presented a very positive assessment of reinsurance conditions in the German market.
On the claims side, the current year has been notable principally for several natural catastrophe events: winter storm "Emma", hailstorm "Hilal" and a further hail loss. The strains incurred by E+S Rück amount to EUR 62.0 million. The impact of "Hilal" was particularly significant; it was the second-largest such event in Germany after the Munich hailstorm of 1984. Looking forward to 2009, E+S Rück anticipates appreciable price increases - not least due to the recent major losses and additional demand for capacity in some lines of business. "In non-proportional motor liability reinsurance, too, we expect substantial rate rises owing to the reduction in the subject premium on the original market over a number of years and claims inflation for bodily injuries, although the extent of such increases will be crucially influenced by the individual loss experience", Michael Pickel, member of the Executive Board, explained.
Bearing in mind the prevailing premium erosion in industrial fire business - the intensity of which is nevertheless diminishing -, E+S Rück will continue to write its business extremely selectively.
Turning to industrial casualty business, the company expects the competitive climate in the original market to remain unchanged. Prospects on the reinsurance side are brighter: the capacities available in the market are limited due to the importance of a very good rating for reinsurers. "It is our expectation that prices and conditions in this area will continue to be commensurate with the risks", Mr. Pickel emphasised.
All in all, E+S Rück - as the reinsurer dedicated to the German market - believes that 2009 will again offer attractive business opportunities and the company is hopeful that its already considerable market share can be further enlarged.
Last Friday Standard & Poor's confirmed the "AA-" Rating (Very Strong) with a stable outlook for Hannover Re and ist subsidiary E+S Rück.
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)
Please visit: www.hannover-re.com
E+S Rück - a subsidiary of Hannover Re - is responsible for German business within the Group, although it also has an interest in developments on the international (re)insurance markets through retrocession arrangements with other Group companies. By adding blocks of foreign business E+S Rück is able to extend the geographical spread of its portfolio, hence improving its risk diversification and stabilising earnings. E+S Rück is the second-largest non-life reinsurer in the German market. The rating agencies most relevant to the insurance industry have awarded Hannover Re as well as E+S Rück 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 and its affiliates 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 E+S Rück 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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