Through the acquisition of the ING life reinsurance portfolio in 2009 Hannover Re has also acquired a policy administration platform and a team of mortality risk experts. "Having a perfect team combined with these new financial resources gives us a sound basis for leveraging the opportunities that will open up going forward," Ulrich Wallin, CEO of Hannover Re, noted. "We are striving to expand our business in the life market."
Hannover Re has the option to further increase the size of the facility above and beyond the initial USD 500 million to support additional business. The facility has a maturity of thirty years, with an early termination option exercisable by Hannover Re at specified times. The pricing is fixed through the first optional redemption date.
This letter of credit facility will be used by Hannover Re solely to expand its life business.