Hannover Re subsidiary expects stable prices for upcoming January 2010 treaty renewals in Germany

Hannover Re subsidiary expects stable prices for upcoming January
2010 treaty renewals in Germany

Baden-Baden, 26 October 2009: On the occasion of its press lunch in
Baden-Baden E+S Rück - which bears responsibility for German business
within the Hannover Re Group - described the climate prevailing on
the German market as largely favourable. "Conditions improved in
2009, not least due to the capacity shortage triggered by the
financial market crisis. Given the current state of the primary
insurance markets, these conditions should at least be maintained
this year", Michael Pickel, Member of the Executive Board, explained.

For 2010 the company anticipates a mixed picture as far as
reinsurance prices are concerned. In industrial property business the
price decline of recent years is likely to continue. E+S Rück will
write its business highly selectively in the face of a fiercely
competitively environment.

In industrial liability business the company expects the competitive
climate on the primary insurance market to remain unchanged.
Prospects on the reinsurance side, however, are brighter: owing to
the importance of a very good rating for reinsurers in casualty
business, the capacities available on the market are of course
limited. "It is our expectation that prices and conditions here will
continue to be commensurate with the risks", Mr. Pickel emphasised.

In motor liability business, an important line for E+S Rück, the
company expects rates for non-proportional covers to rise. This can
be attributed in part to sharply reduced premium income in primary
insurance business and also to lower investment income.

In accident reinsurance E+S Rück does not rely merely on the
traditional assumption of risks, but also offers product innovations:
these include, for example, a combined personal accident annuity
product that represents a cost-effective alternative to disability
insurance.

Mr. Pickel anticipates a stable price level in catastrophe business,
adding: "The Solvency II project initiated by the European Commission
could further boost demand, especially for catastrophe covers - which
should have positive implications for prices".

The burden of catastrophe losses in the current year to date has been
moderate relative to 2008: winter storm "Klaus" and the collapse of
the Cologne City Archive cost E+S Rück a mere
EUR 8 million altogether. The scale of the hailstorms recorded this
year has, however, been considerable, although their relevance as
losses on the reinsurance side is not appreciable.

All in all, E+S Rück - as the reinsurer for Germany within the
Hannover Re Group - is again looking to attractive business
opportunities in 2010 and hopes to continue the profitable expansion
of its already large market share.

For further information please contact:

Press and Public Relations / Investor Relations:
Stefan Schulz (tel. +49 511 5604-1500,
e-mail: stefan.schulz@hannover-re.com)

Press and Public Relations:
Gabriele Handrick (tel. +49 511 5604-1502,
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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