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Hannover Re issues further hybrid capital

  • Making use of the current attractive interest rate environment
  • Exchange of an existing outstanding subordinated debt issue
  • Long-term optimisation of the company's capital base

Hannover, 12 May 2005:

Hannover Re intends to place a subordinated debt offering on the European capital market via its subsidiary Hannover Finance (Luxembourg) S.A. The subordinated debt issue will be offered from tomorrow to institutional investors in several European financial marketplaces. J.P.Morgan is handling placement. This new subordinated debt offering will be perpetual and may be redeemed after ten years at the earliest.

As part of this transaction Hannover Re also plans to replace as far as possible a subordinated debt of EUR 350 million issued in 2001. The holders of the issue, which matures in 2031, will have the opportunity to exchange their existing subordinated debt for holdings in the new offering.

"Hannover Re is taking advantage of the current low level of interest rates to raise additional, even longer-dated hybrid capital in order to further optimise its capital base", CEO Wilhelm Zeller explained.

The present hybrid capital offering will further strengthen Hannover Re's very good capital base. Both the rating agencies and the Federal Financial Supervisory Authority (BaFin) will recognise the capital raised by the transaction as solvency capital.