Hannover Re subsidiary sees attractive business opportunities in the German market

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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