A.M. Best Assigns Rating to Subordinated Notes to be issued by Hannover
Finance (Luxembourg) S.A and Guaranteed by Hannover Re AG
LONDON -- November 13, 2012
A.M. Best Europe – Rating Services Limited has assigned a debt rating of “a+”
to the proposed subordinated fixed to floating rate notes due 2043 to be
issued by Hannover Finance (Luxembourg) S.A (Luxembourg) and irrevocably
guaranteed on a subordinated basis by Hannover Rückversicherung AG (Hannover
Re) (Germany). The assigned outlook is stable.
A.M. Best expects that the proceeds from the debt offering will be used for
general business purposes. The subordinated fixed to floating rate notes will
pay a fixed annual coupon until 30 June 2023, when the interest rate will
convert to a floating rate based on a three-month Euro Interbank Offered Rate,
plus a margin (including a 100bp step-up). Financial and debt leverage ratios
are expected to remain within A.M. Best’s tolerance levels.
The methodology used in determining these ratings is Best’s Credit Rating
Methodology, which provides a comprehensive explanation of A.M. Best’s rating
process and contains the different rating criteria employed in the rating
process. Key criteria utilised include “Insurance Holding Company and Debt
Ratings”. Best’s Credit Rating Methodology can be found at
In accordance with Regulation (EC) No. 1060/2009, the following is a link to
required disclosures: A.M. Best Europe - Rating Services Limited Supplementary
A.M. Best Europe – Rating Services Limited is a subsidiary of A.M. Best
Company. Founded in 1899, A.M. Best Company is the world's oldest and most
authoritative insurance rating and information source. For more information,
Copyright © 2012 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.
A.M. Best Europe – Rating Services Limited
+(44) 20 7397 0264
+(44) 20 7397 0287
Senior Manager, Public Relations
+(1) 908 439 2200, ext. 5378
Assistant Vice President, Public Relations
+(1) 908 439 2200, ext. 5644
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