Hannover Re transferred a portfolio of life and annuity reinsurance to the international capital market.
The transaction dubbed “L7” encompasses a financing volume of 100 million ($131 million) and covers unit-linked life and annuity businesses of several European clients.
The transfer will enable Hannover Re to convert a future earnings steam into a current liquidity position and monetize an embedded value of 100 million as at year-end 2008.
The company said that it secured greater financial flexibility with an eye to the further enlargement of its life and health portfolio, but also improved its risk diversification.
“What is more, this successful placement demonstrates that the market is still open to high-quality business despite the difficult situation on capital markets”, said Wolf Becke, chief executive officer of Hannover Life Re.
