HANNOVER, Germany, Jan. 29, 2007 (PRIME NEWSWIRE) -- Winter storm 'Kyrill' - which swept across large parts of Europe on 18 and 19 January 2007 - caused insured losses in the order of EUR 4 to 7 billion. The exact scale of insured damage cannot yet be reliably assessed in view of the multitude of small- and medium-size losses and the large number of countries affected. Against this backdrop Hannover Re expects a net loss burden of EUR 120 to 180 million before tax; the bulk of this expenditure is attributable to claims in Germany. The total loss amount was alleviated by the 'K5' risk securitisation which had been expanded to USD 520 million as at January 1, 2007 (see NewsLetter published on January 16, 2007).
"Even after 'Kyrill' we are within the bounds of our loss expectations", Chief Executive Officer Wilhelm Zeller explained. Hannover Re's budget for major claims assumes a loss experience within the multi-year average for the full year; it corresponds to around eight percent of net premium expected in property and casualty reinsurance.
Mr. Zeller added: "This severe storm will have a favourable effect on rate movements in European catastrophe reinsurance in the coming year. 'Kyrill' brought home to European insurers that wind is just as much a force to be reckoned with in Europe as it is in the United States."
For further information please contact: Press and Public Relations / Investor Relations: Eric Schuh, CFA (tel. +49 / 511 / 56 04-15 00, e-mail: eric.schuh@hannover-re.com) Press and Public Relations: Gabriele Handrick (tel. +49 / 511 / 56 04-15 02, e-mail: gabriele.handrick@hannover-re.com) Investor Relations: Gabriele Bodeker (tel. +49 / 511 / 56 04-17 36, e-mail: gabriele.boedeker@hannover-re.com)
Hannover Re, with a gross premium of approximately EUR 10 billion, is one of the leading reinsurance groups in the world. It transacts all lines of property/casualty, life/health and financial reinsurance as well as specialty insurance. It maintains business relations with more than 5,000 insurance companies in about 150 countries. Its worldwide network consists of more than 100 subsidiaries, branch and representative offices in around 20 countries with a total staff of roughly 2,000. 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").
Disclaimer: Some of the statements in this press release may be forward-looking statements or statements of future expectations based on currently available information. Such statements are naturally subject to risks and uncertainties. Factors such as the development of general economic conditions, future market conditions, unusual catastrophic loss events, changes in the capital markets and other circumstances may cause the actual events or results to be materially different from those anticipated by such statements. Hannover Re does not make any representation or warranty, express or implied, as to the accuracy, completeness or updated status of such statements. Therefore, in no case whatsoever will Hannover Re and its affiliate companies be liable to anyone for any decision made or action taken in conjunction with the information and/or statements in this press release or for any related damages.