Hannover, 11 January 2011:
The New York State Insurance Department has allowed Hannover Re to qualify as a so-called "Eligible Reinsurer". With its adoption of this regulation New York is following Florida, which in 2010 had been the first and thus far only US state to reduce collateral requirements for alien reinsurers that are highly rated and financially secure.
This means that Hannover Re can now write its non-life reinsurance business under improved conditions in the state of New York as well: while foreign reinsurers are obliged to post collateral for 100 percent of the technical reserves, the required level for Hannover Re, however, is now just 20 percent.
"We welcome the decision of the New York State Insurance Department. It improves free access for international reinsurers to the US market. Given the importance of the state of New York, which has taken this step in the wake of Florida's decision, it is our hope that other US states will follow suit with this regulation", Hannover Re's Chief Executive Officer Ulrich Wallin observed.
Bearing in mind that the state of New York is the largest-volume market in Hannover Re's US portfolio, the recent decision by the New York State Insurance Department takes on special significance.