HANNOVER, Germany, Nov. 16, 2001(PRIMEZONE) -- The company corrects the previous release titled " Moody's Financial Strength Rating for Hannover Re." Rating agency Moody's Investors Service, Inc. announced today that it has downgraded the financial strength rating of Hannover Re (GER:HNR) and its subsidiary E+S Ruck from 'Aa3' to 'A2'. This rating does not only deviate significantly from the evaluation of the other leading rating agencies, it is also based on a completely different level of knowledge and information, the company stated in a press release.
The two leading rating agencies for worldwide insurance and reinsurance business, Standard & Poor's and A.M. Best, have each awarded Hannover Re their second highest rating, AA+ ("Very Strong") and A+ ("Superior") respectively, over a period of more than ten years. In all these years, the rating awarded had been based very substantially on detailed and extensive information, the company explained. Hannover Re's Executive Board and its senior management had granted both agencies a detailed insight into the financial status of Hannover Re, thereby making available information that is normally strictly confidential, such as business plans, intended steps to improve capital adequacy, strategic aims and the expectancies for future developments. This extensive insight, together with publicly available information, formed the sound basis of Standard & Poor's and A.M. Best's evaluation of Hannover Re's financial strength, profitability and market position.
Some time ago, Moody's also began, on an unsolicited basis, to carry out a financial strength rating for Hannover Re. An assessment of the company's financial strength by Moody's appeared to be of very limited additional value to Hannover Re. Furthermore, it would have also meant a considerable amount of additional work and hence a similar close co-operation with Moody's did not take place. Moody's opinion is therefore based essentially on publicly available information and quantitative assessments. Correspondingly, Moody's rating does not take into account imperative additional management information and input. Therefore, the rating is not an accurate reflection of Hannover Re's true financial strength.
For further information, please contact Ralf Arndt; tel. +49/511/56 04-15 00; fax +49/511/56 04-16 48; e-mail ralf.arndt@hannover-re.com.
Hannover Re, with gross premiums of EUR 8.3 billion, is the fifth-largest reinsurance group in the world. It transacts all lines of property/casualty, life/health and financial/finite-risk reinsurance as well as program business. It maintains business relations with more than 2,000 insurance companies in over 100 countries. Its worldwide network consists of more than 100 subsidiaries, branch and representative offices in 20 countries. The American rating agencies Standard & Poor's and A.M. Best have awarded Hannover Re their second-highest rating of AA+ ("Very Strong") and A+ ("Superior"), respectively.