Hannover, Germany - Hannover Re announced today an agreement to acquire certain US Individual Life Reinsurance Business (“ING Business”) previously reinsured from ING by affiliates of Scottish Re Group Limited (“Scottish Re”) in a reinsurance and asset purchase transaction. In addition to assuming the business directly from ING via fresh reinsurance agreements directly with ING, Hannover Re will acquire the policy administration systems of Scottish Re as well as other assets supporting the US mortality reinsurance business.

The ING Business was originally acquired by Scottish Re in a reinsurance transaction effective December 31, 2004. In 2009, this business is estimated to generate a premium volume of ca. USD 1.2 bn and will result in Hannover Re moving up to the number five position in terms of individual life reinsurance in-force in the US. Hannover Re will assume all liabilities of the ING Business and will in turn receive assets to fund those liabilities from Scottish Re. The acquisition includes all operating assets required to administer the ING Business. Hannover Re will also employ part of Scottish Re’s staff, thus ensuring operational continuity and a transfer of know-how.

No external funding will be required to complete this transaction. The acquisition of the ING portfolio will be accretive to Hannover Re’s Group net income from 2009.

The transaction, which is expected to close in the first quarter of 2009, is subject to regulatory approvals and other customary closing conditions.

“This is a transformational step for our global life reinsurance ambitions”, commented Hannover Re’s CEO Wilhelm Zeller. “It contributes a large block of business in force, together with industry-leading capabilities in mortality research, pricing, underwriting and reinsurance administration which will substantially increase our presence and earnings from the US mortality risk market. It has the added benefit of improving our diversification of earnings sources, placing less reliance on the more volatile non-life sector going forward.” 

“We are very excited by the combination of a deep knowledge of the US mortality market with Hannover’s global reach and financial strength. This acquisition nicely complements our leading US reinsurance position in Financial Solutions and the Senior Health market”, commented Peter R. Schaefer, President and CEO of Hannover Life Reassurance Company of America (HLR US). “We look forward to welcoming the employees and customers of our new business platform, and also the ability to offer additional services to our existing customers.”

J.P. Morgan Securities acted as exclusive financial advisor to Hannover Re on this transaction and Locke Lord Bissell & Liddell LLP and Debevoise & Plimpton LLC provided external legal counsel.

Hannover Re will host a conference call at 1.00 p.m. today, invitations for which will follow separately.

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

Investor Relations:

Klaus Paesler
Tel.: +49 511 5604-1736
E-mail: klaus.paesler@hannover-re.com