DGAP-News: Hannover Re assumes portfolio of longevity risks in the United Kingdom
(firmenpresse) - DGAP-News: Hannover Rückversicherung AG / Key word(s): Miscellaneous
Hannover Re assumes portfolio of longevity risks in the United Kingdom
09.01.2012 / 10:30
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Hannover Re assumes portfolio of longevity risks in the United Kingdom
Hannover, 9 January 2012: Hannover Re has successfully concluded a block
transaction for longevity risks in the United Kingdom. The reinsured
portfolio consists of pension obligations assumed by the insurer Legal&General for some 11,500 employees of the UK industrial enterprise
Pilkington with a volume of around GBP 1 billion. The portfolio encompasses
exclusively persons who are drawing a pension.
The swap transaction hedges the risk that the life expectancy of the
pensioners may prove to be higher than anticipated, hence requiring pension
payments to be made for a longer period.
'With this transaction we are cementing our leading position in the
attractive longevity risks market', Chief Executive Officer Ulrich Wallin
explained. 'Going forward, too, we anticipate good business opportunities
since it is likely that companies will increasingly seek to limit their
direct pension obligations.'
Hannover Re is to take over the bulk of the business, while the rest will
remain with Legal&General. Only the biometric risk is assumed, not the
investment and inflation risks.
Hannover Re anticipates premium income of roughly GBP 800 million over the
entire term of the transaction, with some GBP 60 million attributable to
the 2012 financial year.
For Hannover Re the assumption of longevity risks also forms an attractive
part of its risk management since longevity risks are negatively correlated
with mortality risks and hence promote better diversification of the
portfolio.
Through its involvement in enhanced annuities the company's activities in
the area of longevity risks go back as far as the mid-1990s. Since
concluding its first longevity block transaction in 1998 Hannover Re has
assumed pension obligations totalling altogether around EUR 5 billion,
concentrating primarily on the blue-collar workers' segment. Hannover Re
accepted its hitherto largest volume of longevity risks in 2010 in
connection with a portfolio of pension obligations for employees of the
carmaker BMW in the UK.
For further information please contact:
Corporate Communications:
Karl Steinle (tel. +49 511 5604-1500,
e-mail: karl.steinle(at)hannover-re.com)
Media Relations:
Gabriele Handrick (tel. +49 511 5604-1502,
e-mail: gabriele.handrick(at)hannover-re.com)
Investor Relations:
Klaus Paesler (tel. +49 511 5604-1736,
e-mail: klaus.paesler(at)hannover-re.com)
Please visit: www.hannover-re.com
Hannover Re, with a gross premium of around EUR 11 billion, is the
third-largest reinsurer in the world. It transacts all lines of non-life
and life and health reinsurance and is present on all continents with
around 2,200 staff. The rating agencies most relevant to the insurance
industry have awarded Hannover Re very strong insurer financial strength
ratings (Standard&Poor's AA- 'Very Strong' and A.M. Best A 'Excellent').
Please note the disclaimer:
www.hannover-re.com/misc/disclaimer-pr-050811
End of Corporate News
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09.01.2012 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: Hannover Rückversicherung AG
Karl-Wiechert-Allee 50
30625 Hannover
Germany
Phone: +49-(0)511-5604-1500
Fax: +49-(0)511-5604-1648
E-mail: info(at)hannover-re.com
Internet: www.hannover-re.com
ISIN: DE0008402215
WKN: 840 221
Listed: Regulierter Markt in Frankfurt (Prime Standard), Hannover;
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart; Terminbörse EUREX
End of News DGAP News-Service
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151907 09.01.2012
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Datum: 09.01.2012 - 10:30 Uhr
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News-ID 101904
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