Hannover Re successfully issues hybrid bond

Tuesday, 07. September 2010 17:15
Hannover Rück / Hannover Re successfully issues hybrid bond processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement.

               Hannover, 7 September 2010: Hannover Re has today successfully
placed a EUR 500 million subordinated bond on the European capital market via
its subsidiary Hannover Finance (Luxembourg) S.A.

               The issue was taken up principally by institutional investors in
Europe. Four banks were entrusted with handling the transaction:  JPMorgan - as
the structuring advisor - as well as BNP Paribas, Commerzbank and Credit
Agricole CIB.

               The bond issue was oversubscribed several times.

               The bond has a maturity of 30 years with a first scheduled call
option after ten years. It carries a fixed coupon of 5.75% p.a. (yield to first
call 5.75%) in the first ten years, after which the interest basis changes to a
floating rate of 3-month EURIBOR + 423.5 basis points.

               "We are using the current relatively low level of interest rates
to raise additional hybrid capital, further optimise our capital structure and
fund continued growth going forward", Chief Executive Officer Ulrich Wallin
emphasised. Given that the capital market environment has grown more challenging
again in recent weeks, Hannover Re expressed considerable satisfaction with the
placement of the bond.

               For further information please contact:

               Corporate Communications:
               Karl Steinle (tel. +49 511 5604-1500,
e-mail: karl.steinle@hannover-re.com)

               Media Relations:
               Gabriele Handrick (tel. +49 511 5604-1502,
e-mail: gabriele.handrick@hannover-re.com)

               Investor Relations:
               Klaus Paesler (tel. +49 511 5604-1736,
e-mail: klaus.paesler@hannover-re.com)

               Please visit: www.hannover-re.com

               Hannover Re, with a gross premium of around EUR 10 billion, 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 on all five continents with a total staff of roughly 2,100. 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").

               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.

               This press release is not an offer of securities for sale in the
United States. The securities referred to in this press release have not been,
and will not be, registered under the Securities Act of 1933 and may not be
offered or sold in the United States absent registration or an exemption from
registration under the Securities Act. There will be no public offer of these
securities in the United States.


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Hannover Rück
Karl-Wiechert-Allee 50 Hannover Germany

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Source: Hannover Rück via Thomson Reuters ONE
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