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Hannover Re ratings confirmed following acquisition of Skandia International's portfolio

Hannover, 6 October 1997:

Following Hannover Re's acquisition of the active portfolio of Skandia International Insurance Company, Stockholm, the US rating agencies Standard & Poor's and A.M. Best have confirmed their second-highest ratings. Hannover Re's financial strength is rated AA+ ("Excellent") by Standard & Poor's, and A+ ("Superior") by A.M. Best.

Reports published by both rating agencies reveal that Hannover Re's acquisition of the portfolio is regarded as a positive step in the company's further development.

Both Standard & Poor's and A.M. Best emphasize that the acquisition of Skandia International's life business, aviation portfolio and facultative reinsurance fully complements Hannover Re's existing portfolio in the Group's target growth segments. The even greater geographical spread of risks which has now been achieved is also assessed favourably.

A.M. Best adds that the Hannover Re Group will be able to position itself as a leading force in worldwide aviation and aerospace insurance following the acquisition of this business from Skandia International. The assumed portfolio, which is worth DM 115 million, brings Hannover Re's gross premium in this class of business to almost DM 400 million.

Furthermore, A.M. Best expressed satisfaction with the financing of the acquisition, and concluded that it would not have any significant financial implications for the Group's future profits or capital resources. The transaction cost DM 245 million and was entirely financed from own funds.