Hannover Re - Sale of Praetorian Group to Australian insurer completed

Friday, 01. June 2007 08:00



Hannover, 1 June 2007: The sale of Hannover Re's US subsidiary
Praetorian Financial Group, Inc., New York, to the Australian QBE
Insurance Group Ltd., Sydney - which had been agreed in December 2006
- was closed effective 31 May 2007 upon receipt of the required
approval from regulators.

QBE's US subsidiary has acquired all shares of Praetorian. The
purchase price of slightly in excess of USD 800 million is equivalent
to 2.1 times Praetorian shareholders' equity excluding goodwill as at
year-end 2006.

"Following the successful closing of this transaction we shall
concentrate on our core business of reinsurance going forward",
Wilhelm Zeller, Hannover Re's Chief Executive Officer, affirmed. "As
we have already indicated, the risk capital that has been freed up is
to be profitably invested in both non-life and life/health
reinsurance business. This will enable us to more than offset the
loss of Praetorian's profit contribution." Mr. Zeller added, "We
appreciate the combined efforts of Praetorian's employees and their
trading partners, all of which contributed to a successful
transaction close."

Hannover Re can tap into profitable growth opportunities in a number
of areas, including for example by raising its retention in the still
lucrative property catastrophe segment, by writing additional US
catastrophe business, and also by cultivating new markets - such as
in Central and Eastern Europe and in the Islamic world. As a further
step, Hannover Re increased its stake in its profitable subsidiary
E+S Rück by 10% to 65.8% effective 1 April 2007. Last but not least,
acquisitions in life and health reinsurance remain a possibility
insofar as they make strategic and economic sense.

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:
Gabriele Bödeker (tel. +49 / 511 / 56 04-17 36,
e-mail: gabriele.boedeker@hannover-re.com)


Hannover Re, with a gross premium of around 9 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 2,000. 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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Hannover Rück
Karl-Wiechert-Allee 50 Hannover Germany

WKN: 840221;
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Markt in Niedersächsische Börse zu Hannover,
Freiverkehr in Börse Berlin Bremen, Freiverkehr in Börse Düsseldorf,
Freiverkehr in Hanseatische Wertpapierbörse zu Hamburg, Freiverkehr
in Bayerische Börse München,
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View document
Related Links: Hannover Rück SE
Author:
Hugin
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