Hannover Re completes innovative capital market transaction

Hannover, 19 June 2008: Hannover Re has completed the first
transaction as part of its extended Insurance-Linked Securities (ILS)
activities. Property catastrophe risks of a number of US cedants have
been pooled and transferred to the capital market in several
tranches. In contrast to the company's previous securitisations,
Hannover Re's interest here is not in protecting its own business but
in directly transferring clients' business to the capital market.

"With this type of pooling and transformer function we enable ceding
companies to access the capital market - even for risks that would
not lend themselves to this on an independent basis", Chief Executive
Officer Wilhelm Zeller explained.

The transferred portfolio consists exclusively of US catastrophe
business, predominantly hurricane risks in Florida. The reinsurance
intermediary Benfield brokered the relevant contracts and modelled
the portfolio.

A special purpose entity named Globe Re was established in Bermuda
for this transaction; it is capitalised at USD 133 million.

Globe Re is funded by an equity tranche of USD 33 million and a
further USD 100 million in bonds. Benfield and Hannover Re have
participated in the equity tranche in amounts of USD 20.5 million and
USD 5 million respectively. The bonds - split into three tranches of
"BBB-", "BB" and "B" according to Standard & Poor's rating categories
- were placed with institutional investors primarily in North
America. The investors receive an attractive coupon depending on the
risk category. The term of the transaction is one year.

Hannover Re placed the world's first risk securitisation back in 1994
and has since gone on to realise altogether 15 innovative
transactions for both non-life and life/health reinsurance. Globe Re
is the first transaction to come out of the company's newly created
Insurance-Linked Securities department. Set up at the turn of the
year, this unit is tasked inter alia with pooling risks from primary
insurers and transforming them into securities that can be placed on
the capital market. In this context Hannover Re works together with
international reinsurance brokers; the cooperation with the
reinsurance intermediary Benfield is a first successful example of
this approach.

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:
Daniela Gissinger (tel. +49 / 511 / 56 04-15 29,
e-mail: daniela.gissinger@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.
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