Hannover Re subsidiary expects stable prices for upcoming January
2010 treaty renewals in Germany
(Thomson Reuters ONE) - Corporate news announcement processed and transmitted by Hugin AS.The issuer is solely responsible for the content of this announcement. ------------------------------------------------------------------------------------ Hannover Re subsidiary expects stable prices for upcoming January2010 treaty renewals in GermanyBaden-Baden, 26 October 2009: On the occasion of its press lunch inBaden-Baden E+S Rück - which bears responsibility for German businesswithin the Hannover Re Group - described the climate prevailing onthe German market as largely favourable. "Conditions improved in2009, not least due to the capacity shortage triggered by thefinancial market crisis. Given the current state of the primaryinsurance markets, these conditions should at least be maintainedthis year", Michael Pickel, Member of the Executive Board, explained.For 2010 the company anticipates a mixed picture as far asreinsurance prices are concerned. In industrial property business theprice decline of recent years is likely to continue. E+S Rück willwrite its business highly selectively in the face of a fiercelycompetitively environment.In industrial liability business the company expects the competitiveclimate on the primary insurance market to remain unchanged.Prospects on the reinsurance side, however, are brighter: owing tothe importance of a very good rating for reinsurers in casualtybusiness, the capacities available on the market are of courselimited. "It is our expectation that prices and conditions here willcontinue to be commensurate with the risks", Mr. Pickel emphasised.In motor liability business, an important line for E+S Rück, thecompany expects rates for non-proportional covers to rise. This canbe attributed in part to sharply reduced premium income in primaryinsurance business and also to lower investment income.In accident reinsurance E+S Rück does not rely merely on thetraditional assumption of risks, but also offers product innovations:these include, for example, a combined personal accident annuityproduct that represents a cost-effective alternative to disabilityinsurance.Mr. Pickel anticipates a stable price level in catastrophe business,adding: "The Solvency II project initiated by the European Commissioncould further boost demand, especially for catastrophe covers - whichshould have positive implications for prices".The burden of catastrophe losses in the current year to date has beenmoderate relative to 2008: winter storm "Klaus" and the collapse ofthe Cologne City Archive cost E+S Rück a mereEUR 8 million altogether. The scale of the hailstorms recorded thisyear has, however, been considerable, although their relevance aslosses on the reinsurance side is not appreciable.All in all, E+S Rück - as the reinsurer for Germany within theHannover Re Group - is again looking to attractive businessopportunities in 2010 and hopes to continue the profitable expansionof its already large market share.For further information please contact:Press and Public Relations / Investor Relations:Stefan Schulz (tel. +49 511 5604-1500,e-mail: stefan.schulz(at)hannover-re.com)Press and Public Relations:Gabriele Handrick (tel. +49 511 5604-1502,e-mail: gabriele.handrick(at)hannover-re.com)Please visit: www.hannover-re.comE+S Rück - a subsidiary of Hannover Re - is responsible for Germanbusiness within the Group, although it also has an interest indevelopments on the international (re)insurance markets throughretrocession arrangements with other Group companies. By addingblocks of foreign business E+S Rück is able to extend thegeographical spread of its portfolio, hence improving its riskdiversification and stabilising earnings.E+S Rück is the second-largest non-life reinsurer in the Germanmarket. The rating agencies most relevant to the insurance industryhave awarded Hannover Re as well asE+S Rück very strong insurer financial strength ratings (Standard &Poor's AA- "Very Strong" and A.M. Best A "Excellent").Disclaimer: Some of the statements in this press release may beforward-looking statements or statements of future expectations basedon currently available information. Such statements are naturallysubject to risks and uncertainties. Factors such as the developmentof general economic conditions, future market conditions, unusualcatastrophic loss events, changes in the capital markets and othercircumstances may cause the actual events or results to be materiallydifferent from those anticipated by such statements. Hannover Re andits affiliates does not make any representation or warranty, expressor implied, as to the accuracy, completeness or updated status ofsuch statements. Therefore, in no case whatsoever will E+S Rück andits affiliate companies be liable to anyone for any decision made oraction taken in conjunction with the information and/or statements inthis press release or for any related damages. --- End of Message ---Hannover RückKarl-Wiechert-Allee 50 Hannover GermanyWKN: 840221; ISIN: DE0008402215; Index: CDAX, CLASSIC All Share, HDAX, MDAX, MIDCAP, Prime All Share;Listed: Prime Standard in Frankfurter Wertpapierbörse, Freiverkehr in Börse Berlin, Freiverkehr in Börse Düsseldorf, Freiverkehr in Hanseatische Wertpapierbörse zu Hamburg, Freiverkehr in Bayerische Börse München, Freiverkehr in Börse Stuttgart, Regulierter Markt in Niedersächsische Börse zu Hannover, Regulierter Markt in Frankfurter Wertpapierbörse;
Datum: 26.10.2009 - 13:30 Uhr
Sprache: Deutsch
News-ID 7409
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