Hannover Re highly satisfied with treaty renewals in non-life reinsurance

Hannover Re highly satisfied with treaty renewals in non-life
reinsurance

* Growing demand for reinsurance
* Enlarged premium volume
* US property business records significant rate increases
* Attractive market environment in Germany
* Rate increases in catastrophe business
* Credit and surety business enjoys unusually strong price
rise
* Return on equity target for 2009: in excess of 15%

Hannover, 3 February 2009: Hannover Re is highly satisfied with this
year's treaty renewals in non-life reinsurance. "We can look back on
a successful round of treaty renewals. The bottom has been reached
and premium erosion halted. The capital lost by insurers as a
consequence of the financial market crisis has prompted the expected
stronger demand for reinsurance", Chief Executive Officer Wilhelm
Zeller explained. As a result, premium increases were secured in many
markets, sometimes even running into double-digit percentages - this
applies especially to catastrophe business impacted by losses in 2008
and to worldwide credit and surety reinsurance. German business
continued to be attractive.

The treaty renewals also demonstrated that with every passing year
ceding companies are attaching even greater importance to the
financial strength of reinsurers; given the repercussions of the
financial market crisis this is hardly surprising. In view of its
excellent ratings ("AA-" from Standard & Poor's and "A" from A.M.
Best) Hannover Re was once again a sought-after business partner in
this renewal season.

Of the total premium volume of EUR 3,716 million written in non-life
reinsurance in 2008 (excluding facultative business and structured
covers), a good two-thirds of the treaties worth altogether EUR
2,564 million (69%) were up for renewal as at 1 January 2009. Of
this, a premium volume of EUR 2,304 million was renewed, while
treaties worth EUR 260 million were either cancelled or renewed in
modified form.

Including increases of EUR 372 million from new or modified treaties
and thanks to improved prices in some areas, the total renewed
premium volume thus came in at EUR 2,676 million. Making allowance
for treaties with a later renewal date, gross premium in non-life
reinsurance is likely to comfortably surpass the previous year's
level at EUR 3,886 million (+4.6%).

In US property business a hardening of market conditions was evident
- both with regard to rates and conditions. Rate increases of up to
20% could thus be obtained. In US casualty business further premium
erosion was avoided; rate increases could only be pushed through for
directors' and officers' (D&O) and professional indemnity covers.
Given the continuing reverberations of the crisis on financial
markets, Hannover Re anticipates further price increases mid-year.

The development of business in Germany was also gratifying. In the
motor liability sector, an important line for Hannover Re, rate
increases of up to 20% were secured in non-proportional business.
Prices for catastrophe covers also rose on the back of heavy losses
from natural disasters in the past year. "We slightly enlarged our
high market share in Germany thanks to new client relationships and
increased treaty shares under existing accounts, thereby cementing
our position as one of the leading reinsurers in the profitable
German market", Mr. Zeller emphasised.

Rate increases in worldwide catastrophe business were attainable.
However, prices were only partly risk adequate. As a consequence,
Hannover Re slightly reduced its business.

Developments in worldwide credit and surety reinsurance were most
pleasing. The market environment hardened appreciably across the
board, with rate increases running well into double-digit percentages
as well as significant improvements in conditions. Promising new
business opportunities combined with increased shares under existing
client relationships served to boost the premium volume by around
one-third. "Thanks to attractive terms and conditions we were able to
further expand this segment and hence reinforce our market position",
Mr. Zeller explained.

Outlook for 2009
Given the successful treaty renewals as at 1 January and against the
backdrop of a hardening market, a very good financial year is
anticipated in 2009. "The general scarcity of capital in the
insurance industry associated with the crisis on financial markets as
well as the tightly limited capacity available on the retrocession
market will continue to favourably influence market conditions", Mr.
Zeller noted. Hannover Re therefore anticipates net premium growth of
around 5% in non-life reinsurance. Making allowance for the recent
acquisition in life and health reinsurance, an increase of 17% is
expected for the Group as a whole.

"Our company has weathered the storm on financial markets. We are
building directly on the profit targets set back at the beginning of
2008", Mr. Zeller added. Assuming that the burden of major losses
remains within the expected bounds and that there are no further
severe upheavals on the investment side, a return on equity in excess
of 15% should be attainable in the current year - disregarding the
one-off effect of the latest acquisition in life and health
reinsurance. Earnings per share - again disregarding the one-off
effect in life and health reinsurance - are expected to come in
between 4.75 euro and 5.25 euro. With regard to the dividend, the
company envisages a distribution of 35% to 40% in this scenario.

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.

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