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7.11 Events after the balance sheet date

The fire on the KS Endeavor drilling rig off the coast of Nigeria on 16 January 2012 will result in an estimated loss for Hannover Re in the very low double-digit million euros.

On 16 and 23 January 2012 we reported on the implications for Hannover Re of the incident involving the Costa Concordia cruise liner, which will result in a major loss for our company. The net loss from the marine hull insurance is in the order of EUR 30 million, while the liability claims are difficult to estimate at this point in time. Given that Hannover Re is one of the world’s leading marine reinsurers, the total loss for the company could run into the mid-double-digit millions of euros.

In a press release dated 26 January 2012 we announced that Hannover Re had again enabled the capital market to participate in (natural) catastrophe risks by increasing the proportional retrocession programme referred to as the “K Cession” (previously “K6”) by an amount equivalent to roughly EUR 15 million to EUR 270 million. The transaction, which complements the traditional retrocession programme used to protect against peak exposures such as natural disasters, was placed with institutional investors worldwide and is fully collateralised. The cession rate is roughly 37% and applies to a portfolio comprised of non-proportional reinsurance treaties from the six main zones for natural catastrophe risks as well as the aviation and marine (including offshore business) lines.

Hannover, 8 March 2012

Executive Board

Signature Wallin Signature Arrago Signature Chevre Signature Gräber
Wallin Arrago Chèvre Gräber
Signature Dr. Miller Signature Dr. Pickel Signature Vogel
Dr. Miller Dr. Pickel Vogel

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