2009-11-10 17:55:04 -

A.M. Best Co. has upgraded the issuer credit rating (ICR) to “a+” from “a” and affirmed the financial strength rating (FSR) of A (Excellent) of Hannover Re (Bermuda) Ltd. (Hamilton, Bermuda).

The outlook for both ratings is stable.

The ICR of Hannover Re Bermuda has been upgraded to reflect the strategic importance of the company to its parent, Hannover Rueckversicherung AG

(Hannover Re) (Germany), as the main property catastrophe excess of loss carrier and as the centre of excellence for catastrophe business within Hannover Re. Hannover Re Bermuda’s ratings also reflect its excellent stand-alone risk-adjusted capitalisation as well as the benefit of comprehensive reinsurance protection provided by its parent.

A.M. Best believes that the company continues to manage its risk profile effectively, achieving technical profitability even in years with major catastrophes. In 2008, Hannover Re Bermuda’s net income decreased to EUR 86 million from EUR 139 million in 2007, due to a drop in investment income and a worse year for catastrophe claims, particularly Hurricane Ike and windstorm Emma. The company still achieved a very low combined ratio of 49.6%, albeit a deterioration from 43.1% the previous year.

A.M. Best acknowledges the geographic diversification of Hannover Re Bermuda’s book of business, although the diversification across lines of business remains limited with over 90% of premiums written in property catastrophe excess of loss lines. The balance is written in US workers’ compensation catastrophe, terrorism and personal accident catastrophe lines. Gross premiums written contracted marginally to EUR 337 million in 2008 from EUR 348 million in 2007.

For Best’s Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings : .

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology : .

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com : .


A.M. Best Co.Analysts:Maik Stolle, +(44) 20

7626 6264 maik.stolle@ambest.com : mailto:maik.stolle@ambest.com orDeniese

Imoukhuede, +(44) 20 7626 6264 deniese.imoukhuede@ambest.com : mailto:deniese.imoukhuede@ambest.com orPublic

Relations:Jim Peavy, +(1) 908-439-2200, ext. 5644 james.peavy@ambest.com : mailto:james.peavy@ambest.com orRachelle
Morrow, +(1) 908-439-2200, ext. 5378 rachelle.morrow@ambest.com : mailto:rachelle.morrow@ambest.com