Hannover Re has successfully placed a swap for extreme mortality scenarios on the capital market. This multi-year protection cover hedges life insurance risks against a severe increase in mortality rates – resulting, for example, from pandemics – in the United Kingdom, Australia and the United States.
Hannover, 16 December 2014:
Hannover Re has successfully placed a swap for extreme mortality scenarios on the capital market. This multi-year protection cover hedges life insurance risks against a severe increase in mortality rates – resulting, for example, from pandemics – in the United Kingdom, Australia and the United States. Altogether, a volume of some USD 160 million has been placed in the past two years.
The index-linked swap, which was structured and placed by Hannover Re, was taken up primarily by institutional investors.
"With this transaction we have developed a customised concept designed to counter the impacts of a significant increase in mortality rates", Ulrich Wallin, Chief Executive Officer of Hannover Re, explained.
Hannover Re has been active in the field of insurance-linked securities (ILS) since the mid-1990s and has considerable expertise in enabling investors to participate in insurance risks.
Hannover Re is one of the world’s leading reinsurers. It transacts all lines of property & casualty and life & health reinsurance and is present worldwide with more than 3,500 staff. German business of the Hannover Re Group is written by the subsidiary E+S Rück. Established in 1966, Hannover Re is recognised as a reliable partner for innovative risk solutions, exceptional customer intimacy and financial soundness. The rating agencies most relevant to the insurance industry have awarded both Hannover Re and E+S Rück outstanding financial strength ratings: Standard & Poor's AA- "Very Strong" and A.M. Best A+ "Superior".
This press information is provided without any guarantee whatsoever. Please find further important information in this regard here.